The New York Department of Financial Services has proposed changes requiring insurers to obtain prior approval before increasing personal auto insurance rates, implementing a law that takes effect November 27, 2026.

Currently, insurers can implement up to two overall average rate increases in a 12-month period without prior approval, provided the cumulative increase stays within 5%. The proposed amendment to Regulation 153 removes that flexibility for personal auto increases while preserving file-and-use treatment for qualifying average decreases of up to 5%.

The proposal also requires prior approval if a personal auto filing raises any individual policy’s annual premium, even when the filing reduces rates overall. Individual premium decreases exceeding 30% over a 12-month period would also require approval.

Insurers reducing personal auto rates because of reforms in New York’s fiscal 2026–2027 budget would have to notify policyholders at renewal and explain the reason. Notices must be delivered 30 to 60 days before the current policy expires.

The change applies to personal auto insurance. The regulation retains a separate framework allowing qualifying for-hire motor vehicle rate increases of up to 5% without prior approval.