Rising Unpaid Auto Insurance Claims in NY: Insights and Implications

Weiss Ratings has released a report analyzing the auto insurance landscape in New York, revealing a sharp rise in liability claims closed without payment over the past two decades. By 2025, this trend reached 48.6%, a significant jump from 33.6% in 2005. These findings highlight the challenges policyholders face, particularly in understanding the factors driving these outcomes.

According to the report, Allstate Insurance leads in the number of unpaid claims, with 55.5% of its 1.24 million liability claims in New York ending without compensation. Meanwhile, Progressive Max Insurance, along with its affiliate Progressive Advanced, reported a 47.4% rate of unpaid claims. This data, extracted from the 2025 NAIC Annual Statutory Financial Statement, focuses on carriers with large auto policy portfolios, showing a trend across major market players.

Dr. Martin Weiss, the founder of Weiss Ratings, shed light on the report's implications, emphasizing the prevalence of fraud cited by insurers as a justification for non-payment. He noted the increased rate of unpaid claims since 2005 and criticized the lack of transparency and regulatory oversight impacting consumer choices. The inclusion of the New York Department of Financial Services in the Market Conduct Annual Statement system aims to address these adverse outcomes for policyholders.

Titled "Private Auto Owners in New York State Face an Increasingly Hostile Insurance Marketplace," the report advises consumers to carefully evaluate an insurer’s claims payment history. Weiss Ratings, renowned for its independent safety and investment ratings, continues to highlight financial vulnerabilities, drawing recognition from the U.S. Government Accountability Office and media like The New York Times and Barron's.