Spitzer Proposes $20 Surcharge for N.Y. Auto Insurance Policies

N.Y. Governor Eliot Spitzer has proposed upping the current surcharge on Empire State auto insurance policies by $15 as part of his statewide budget plan.

That increase would raise to $20 the surcharge on any New York auto insurance policy.

The bump in surcharges – expected to generate a reported $140 million for the state – is one of numerous new taxes and fees proposed by Spitzer as part of an effort to close an estimated $4.4 billion deficit in his state budget proposal.

Spitzer has proposed using $100 million of the money generated by the new surcharge to help pay for a proposed $1 billion “Revitalization Fund” that will promote upstate economic development initiatives.