In November 2023, Big I NY celebrated the signature of our top priority bill, which will allow carriers to waive CARCO photo for any or all vehicles in NY. Here is all you need to know about how this will work!
When can carriers begin waiving photo inspections?
The new law will become effective on May 15th, 2024. We anticipate that many carriers will begin waiving photo inspections on or shortly after this date.
How long will carriers be allowed to waive photo inspections?
Until October 1, 2027 if the law is not extended or made permanent. Big I NY is committed to making these changes permanent.
Do carriers have to waive all photo inspections?
No. The law allows them to waive all or some inspections based on their underwriting guidelines.
Will all carriers eliminate or reduce their photo inspection requirements?
This is up to each individual carrier. According to CARCO’s own data, states that have made photo inspections optional was 80%-90% reduction in inspections across the board. We anticipate similar effects in NY.
Which vehicles will carriers still require photo inspections for?
This is up to each carrier. The regulations implementing the law are still being finalized, but we believe carriers will be permitted to waive inspections for any vehicles they wish, provided it is not unfairly discriminatory and consistent with the company’s underwriting guidelines. Inspections will likely be waived by vehicle, not by individual insured. Companies may still opt to require inspections for vehicles that have a high incidence of insurance fraud.
I haven’t heard anything from my carriers about this yet. Why not?
DFS still needs to adopt changes to the insurance regulations to provide specific guidance on how carriers may waive inspections. We know these changes are in progress but not exactly when they will be finalized, other than by May 15th of this year. We do not expect carriers will make formal decisions about waiving photo inspections until these regulations are in place.
Other questions? Contact Scott Hobson at SHobson@BigINY.org