Updated
The New York insurance premium increase law now requires authorized insurers to explain certain home and auto renewal increases. For covered personal policies, an automatic explanation is required when the increase is more than 10% after excluding premium tied to added insured value. Other covered policyholders may request an explanation in writing.
Key Facts
- The requirements apply to renewal premium bills mailed or delivered on or after August 24, 2026.
- Certain personal auto and residential property policies receive an automatic explanation when the adjusted increase is more than 10%.
- Other covered policyholders may request a written explanation, generally due within 20 days.
- Renters policies, general liability policies and excess line coverage are excluded.
- The law does not cap premiums, order refunds or require an insurer to reverse an increase.
What Happened
The New York insurance premium increase law, codified as Insurance Law Section 2356, took effect on August 24, 2026. It was signed on May 26 as part of Chapter 58 of the state’s 2026–2027 fiscal-year budget legislation.
The New York Department of Financial Services implementation guidance says insurers should attach the required notices to renewal bills mailed or delivered on and after the effective date.
The law improves transparency. It does not make an increase unlawful merely because it exceeds 10%.
How the New York Insurance Premium Increase Law Works
Automatic explanations for certain increases above 10%
An authorized insurer must automatically provide the dollar increase and primary rating factors when a covered personal policy rises by more than 10%, excluding premium attributable to added insured value.
The rule covers private-passenger auto policies, including motorcycles and motorhomes. It also covers property insurance on residential real estate with no more than four dwelling units, excluding hotels and motels.
The statute says “in excess of ten percent.” A 10% increase is not an increase above 10%. A policyholder may still have the written-request right below.
A written-request right for a broader group
When an automatic explanation is not supplied, covered renewal bills must carry a prominent notice explaining how to request one. The insurer must provide its contact information.
After receiving a written request at renewal, the insurer must identify the primary rating factors within 20 days. DFS says this provision also reaches commercial motor vehicles, certain nonowned and hired vehicle policies, condo master policies, businessowners policies, commercial multi-peril coverage and some umbrella policies.
Separately, Section 2356 requires notice when an insurer reduces private-passenger auto premiums because of the 2026–2027 budget reforms.
How the 10% Calculation Can Differ From the Bill
The automatic-notice calculation excludes premium caused by “insured value added,” such as increased coverage. The statutory percentage can therefore be lower than the total increase on the bill.
Suppose a policy rises from $1,500 to $1,680, or 12%. If $60 of the $180 increase is attributable to added coverage, the remaining $120 equals 8% of the prior premium. In that illustration, the automatic rule may not apply, although the policyholder may still request an explanation.
If the non-coverage portion alone exceeds 10%, DFS says the insurer should send the automatic notice, identify all primary reasons and show the total dollar increase.
What an Explanation Should Include
The text of New York Insurance Law Section 2356 lists examples: claims history, changes to vehicles or drivers, an address change, anticipated losses in the rating territory and higher repair, medical or claim-processing costs.
DFS says the reasons must be specific enough for the insured to understand. If several primary factors contributed, the insurer should identify all of them.
Who Is Not Covered
The New York insurance premium increase law excludes renters insurance because it does not cover loss of or damage to the real property itself. General liability policies are also outside the rule.
The requirements apply to authorized insurers, not excess line insurers. Policies written in New York’s free trade zone remain subject to the notice rules, according to DFS.
What Policyholders Should Do Now
- Read the first renewal bill. For installments, DFS says the notice belongs with the initial renewal bill.
- Compare policy details. Check limits, deductibles, vehicles, drivers, addresses, discounts and endorsements.
- Request the reasons in writing. Identify the policy and renewal date, then use the insurer’s stated email, portal or mailing address.
- Save proof. Keep the request, confirmation, delivery record and response.
- Avoid a lapse. Do not assume the request pauses the payment deadline; confirm dates with the insurer.
Official Help and Complaint Resources
If an insurer misses the 20-day response period, omits a required notice or provides reasons inconsistent with the policy records, contact the company and request a written correction.
An unresolved issue can be submitted through the New York DFS consumer complaint process. Include the renewal bill, declarations pages, written request, delivery proof and response. A complaint does not guarantee a rate reduction, refund or other outcome.
Bottom Line
The New York insurance premium increase law gives many auto and residential-property policyholders more information at renewal. Certain increases above 10% require an automatic explanation after added insured value is excluded. A broader group can request the reasons in writing and generally receive a response within 20 days.
Editorial disclaimer: This article provides general consumer information and is not legal, insurance or financial advice. Coverage, pricing and complaint rights depend on the policy, insurer, facts and applicable law.
This report provides general news and educational information for a U.S. audience. It is not individualized financial, credit, legal, tax, insurance or investment advice. Verify current procedures through the linked official sources.
