Penalty Amount
$14,200,000
Consumers Affected
825,000
New York Attorney General Letitia James secured $14.2 million in settlements from eight car insurance companies for failing to implement reasonable data security controls, leading to data breaches that exposed over 825,000 New Yorkers' personal information including driver's license numbers and dates of birth. Hackers exploited vulnerabilities in the companies' online quoting tools to steal the data, which was later used to file fraudulent unemployment claims during the COVID-19 pandemic. The settlements require the companies to pay penalties and implement enhanced cybersecurity measures including data inventory maintenance, multifactor authentication, and improved threat response procedures.
The eight settling companies must pay a combined $14.2 million in civil penalties, with individual penalties ranging from $815,000 to $2.8 million per company. All companies are required to implement and maintain a comprehensive information security program, including maintaining a private data inventory, reasonable authentication procedures (such as multifactor authentication), logging and monitoring systems to detect suspicious activity, and enhanced threat response procedures. Affected New Yorkers were offered one year of free credit report monitoring.
In-house legal teams at companies that use online consumer-facing data collection tools (including quoting, pre-fill, or account portals) should review all vendor agreements with data brokers or third-party tool providers to ensure they include mandatory security controls, breach notification requirements, and liability for security failures. Contracts should explicitly require multifactor authentication for agent or employee access, regular security assessments of tools handling private information, and maintenance of comprehensive data inventories. Companies should also update incident response provisions in vendor agreements to align with regulatory expectations for timely breach detection and reporting, and include requirements for logging and monitoring of suspicious activity. For entities in the insurance industry, specific review of agency quoting tool agreements for security warranties and compliance with state cybersecurity regulations is recommended.
Entity
American Family Mutual Insurance Company/Midvale Indemnity Company; Farmers Insurance; Hagerty Insurance Agency; The Hartford Insurance Group; Infinity Insurance Company; Liberty Mutual Insurance; Metromile; State Auto Mutual Insurance Company
Industry
InsuranceOfficial Press Release
https://ag.ny.gov/press-release/2025/attorney-general-james-secures-142-million-car-insurance-companies-over-data
american family mutual insurance company s.i assurance of di
https://ag.ny.gov/sites/default/files/settlements-agreements/american-family-mutual-insurance-company-s.i-assurance-of-discontinuance-2025.pdf
farmers insurance exchange assurance of discontinuance 2025
https://ag.ny.gov/sites/default/files/settlements-agreements/farmers-insurance-exchange-assurance-of-discontinuance-2025.pdf
hagerty insurance agency assurance of discontinuance 2025
https://ag.ny.gov/sites/default/files/settlements-agreements/hagerty-insurance-agency-assurance-of-discontinuance-2025.pdf
hartford fire insurance company assurance of discontinuance
https://ag.ny.gov/sites/default/files/settlements-agreements/hartford-fire-insurance-company-assurance-of-discontinuance-2025.pdf
infinity insurance company assurance of discontinuance 2025
https://ag.ny.gov/sites/default/files/settlements-agreements/infinity-insurance-company-assurance-of-discontinuance-2025.pdf
liberty mutual holdings company assurance of discontinuance
https://ag.ny.gov/sites/default/files/settlements-agreements/liberty-mutual-holdings-company-assurance-of-discontinuance-2025.pdf
metromile llc assurance of discontinuance 2025
https://ag.ny.gov/sites/default/files/settlements-agreements/metromile-llc-assurance-of-discontinuance-2025.pdf
state automobile insurance company assurance of discontinuan
https://ag.ny.gov/sites/default/files/settlements-agreements/state-automobile-insurance-company-assurance-of-discontinuance-2025.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"The car insurance companies involved in today’s settlements are: American Family Mutual Insurance Company/Midvale Indemnity Company, Farmers Insurance, Hagerty Insurance Agency, The Hartford Insurance Group, Infinity Insurance Company, Liberty Mutual Insurance, Metromile, and State Auto Mutual Insurance Company."
"secured $14.2 million from eight car insurance companies"
"October 14, 2025"
"New York Attorney General Letitia James"
"did not implement reasonable data security controls to protect consumers’ private information"
"more than 825,000 New Yorkers"
New York Attorney General Letitia James joined a coalition lawsuit challenging NHTSA’s rollback of federal fuel economy standards. The coalition alleges that the final rule violates federal law and asks the court to strike it down; the press release describes no privacy violations or monetary penalty.
$400.0M
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$5.9M
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$25K
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