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Uber vs Lawyers Fight NY Insurance Rates

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Uber has emerged as a formidable opponent to the New York State Trial Lawyers Association, spending $8.3 million to push for Governor Hochul's auto insurance reform. The ride-share company supports legislation that would cap damages and lower premiums, which are among the highest in the nation. The powerful lawyers' group, traditionally aligned with expanding litigation rights, has pushed back against the proposal that could curtail legal fees for its members.

New York drivers currently pay an average of $1,896 annually for auto insurance, 32 percent above the national average. Hochul's proposal would cap pain and suffering damages at $100,000 in cases involving uninsured or impaired drivers. The legislation would also prevent motorists found more than 51 percent at fault from seeking additional compensation beyond the $50,000 offered under no-fault coverage. Supporters claim these changes are necessary to combat fraudulent claims.

The trial lawyers association has traditionally spent millions on political campaigns and lobbying in Albany. Over the past decade, the group contributed $2.65 million to political action committees and spent $16 million on lobbying firms. Uber's aggressive campaign has included mass mailings to legislators, though some recipients claim they didn't authorize the letters. The dispute remains a sticking point in the state's ongoing budget negotiations.