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Proposed New York Law Would Ease Collision Insurance Requirements

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May 11, 2022—Business organizations are urging New York lawmakers to approve a law that would waive a photo inspection requirement for drivers to have collision coverage on their cars. 

According to a story from Spectrum News1, the proposed measure would allow auto insurance companies to waive vehicle photo inspections usually needed to obtain the collision or comprehensive coverage. 

The bill was previously approved in the state Assembly with bipartisan support. Several business groups, which include the New York Insurance Association, Big I New York and the Business Council, signed onto a letter urging the measure to receive backing in the final weeks of the state's legislative session. The businesses argue the bill will make it easier for consumers to obtain collision coverage, while also providing regulatory relief for small insurance brokers. 

"Mandatory photo inspections are a burden to consumers and put them at risk of losing coverage if the inspection is not completed within a short timeframe," the letter reads. "These inspections are no longer necessary due to transformative advances in how insurance companies identify and prevent fraudulent claims."

At the same time, the groups maintain the photo requirement is no longer necessary or effective in preventing fraud. Insurance companies would still be able to have photo inspections if they are considered needed.  

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