Adirondack and Mountain Valley Exited New York: What Fleet Owners Should Do Now
If you’re a commercial fleet owner in New York and you received a non-renewal notice from Adirondack Insurance Exchange or Mountain Valley Indemnity Company in late 2024, you’re not alone. Both carriers exited the New York commercial auto market in October 2024, leaving thousands of policyholders scrambling for replacement coverage.
This isn’t a temporary pullback. Both carriers are gone from New York for the foreseeable future. If you haven’t already found replacement coverage, you need to act now. Here’s what happened, who’s affected, and exactly what you should do next.
What Happened
Adirondack Insurance Exchange and Mountain Valley Indemnity Company both announced their withdrawal from New York’s commercial auto insurance market effective October 2024. Existing policies are being non-renewed at their expiration dates, meaning policyholders must find new coverage before their current policy term ends.
Neither carrier made a dramatic public announcement. Instead, agents and brokers across the state began receiving non-renewal notices for their clients. By the time most fleet owners heard about it, the exits were already in motion.
Why They Left
The short answer: they were losing money on virtually every policy they wrote.
New York’s commercial auto insurance market has been unprofitable for over a decade. Industry data shows that commercial auto insurers in New York posted combined loss ratios above 100% in 12 of the last 13 years. A combined ratio above 100% means the carrier is paying out more in claims and expenses than it collects in premiums.
The factors driving losses in New York include:
- No-fault PIP costs: New York’s $50,000 mandatory Personal Injury Protection benefit is among the highest in the country. PIP claims, including fraudulent ones, drive a significant portion of commercial auto losses.
- Litigation environment: New York is one of the most plaintiff-friendly states for auto accident lawsuits. High verdict amounts and liberal discovery rules make defending claims expensive.
- Social inflation: Jury awards for bodily injury have been rising faster than medical inflation, increasing the severity of every claim.
- Scaffold Law exposure: New York’s absolute liability standard for gravity-related injuries at construction sites creates outsized risk for commercial vehicles operating near job sites.
- Repair costs: Vehicle repair and replacement costs have surged since 2020, driven by supply chain constraints, labor shortages, and increasingly complex vehicle technology.
For Adirondack and Mountain Valley, the math simply stopped working. Rather than continue absorbing losses or attempt to raise rates through New York’s slow regulatory process, they chose to exit.
Who’s Affected
Both carriers wrote commercial auto policies across New York State, with significant concentrations on Long Island, in the Hudson Valley, and in the greater New York City metro area. Affected policyholders include:
- Small to mid-size commercial fleets (3 to 25 vehicles)
- Contractors and construction companies
- Delivery and distribution operations
- Service companies (HVAC, plumbing, electrical)
- Landscaping and property maintenance firms
- Any business with commercial vehicles insured through either carrier
If you’re not sure whether your policy is through Adirondack or Mountain Valley, check your declarations page (the first page of your policy). The carrier name is listed at the top. If it says either name, you are affected.
What to Do If You’re Affected
The worst thing you can do is wait. Here’s your action plan:
Step 1: Check Your Non-Renewal Date
Your current policy will remain in force until its expiration date. New York law requires carriers to provide at least 60 days’ notice of non-renewal. Find your expiration date and work backward from there. You need replacement coverage bound before that date, with no gap.
Step 2: Don’t Wait for the Non-Renewal Letter
Some fleet owners are still waiting for formal non-renewal notices. Don’t. If your carrier is Adirondack or Mountain Valley, assume you’re being non-renewed and start shopping immediately. The longer you wait, the fewer options you’ll have.
Step 3: Gather Your Information
Any new carrier will need the following to quote your fleet:
- Current declarations page (showing all vehicles, drivers, and coverages)
- Loss runs (claims history for the past 3 to 5 years; request these from your current carrier or broker now)
- Driver list with license numbers and dates of birth
- Vehicle list with VINs, year, make, model, and GVW
- Description of your business operations and radius of travel
- Current COI requirements from clients or contracts
The most important item is your loss runs. Carriers take weeks to produce them, so request them today. Without loss runs, most carriers won’t even quote you.
Step 4: Work with an Independent Broker
This is where the difference between a captive agent and an independent broker becomes critical.
A captive agent represents one carrier. If that carrier won’t write your fleet (or has also exited New York), you’re stuck. An independent broker like First Heritage Insurance Agency has access to 50 or more commercial auto carriers and can shop your fleet across the entire market.
In a hard market where carriers are exiting, having access to more options isn’t just convenient; it’s the difference between getting coverage and going uninsured.
Step 5: Be Realistic About Pricing
When carriers exit a market, supply decreases while demand stays the same. That means premiums go up. If your Adirondack or Mountain Valley policy was competitively priced, expect your replacement coverage to cost 10% to 30% more. In some cases, particularly for fleets with claims history or high-risk vehicle types, the increase could be higher.
This isn’t price gouging. It’s the mathematical reality of fewer carriers spreading the same amount of risk. An independent broker can help you find the best available price for your specific fleet profile.
Why Being Non-Renewed Is Not the Same as Being Cancelled
This is an important distinction that affects your future insurability. Being non-renewed because your carrier exited the market is not a negative mark on your record. Carriers and underwriters understand the difference between:
- Carrier-initiated non-renewal due to market exit: This is what happened with Adirondack and Mountain Valley. It reflects the carrier’s business decision, not your risk profile. Other carriers will not penalize you for this.
- Non-renewal due to claims: If a carrier non-renews you because of too many claims or a large loss, that does affect your market options.
- Cancellation for non-payment or misrepresentation: This is the most damaging and makes finding replacement coverage significantly harder.
When you apply for replacement coverage, make sure your broker explains that your non-renewal was due to the carrier’s market exit. This context matters to underwriters.
What Happens If You Can’t Find Coverage
New York has a safety net for commercial auto policyholders who can’t find coverage in the standard market: the New York Automobile Insurance Plan (NYAIP), also known as the assigned risk pool.
The NYAIP guarantees that any vehicle registered in New York can obtain liability coverage. However, assigned risk coverage has significant drawbacks:
- Premiums are typically 30% to 60% higher than the standard market
- Coverage options are limited (you may not get all the endorsements you need)
- COI flexibility is restricted (additional insured endorsements may be limited)
- You’re branded as an assigned risk account, which can affect your ability to get standard market coverage later
The assigned risk pool should be your last resort, not your first call. An independent broker will exhaust all standard and specialty market options before placing you in the NYAIP.
The Bigger Picture: More Exits May Be Coming
Adirondack and Mountain Valley are not the first carriers to exit New York’s commercial auto market, and they won’t be the last. The underlying problems that drove them out, including excessive litigation costs, high PIP benefits, and regulatory constraints on rate increases, haven’t been fixed.
Governor Hochul has proposed auto insurance reforms for 2026, including potential PIP changes and rate regulation adjustments. But until those reforms are enacted and take effect, the market will remain challenging. Fleet owners should expect:
- Continued premium increases of 5% to 15% annually
- More selective underwriting (carriers being pickier about which fleets they’ll insure)
- Potential additional carrier exits or market restrictions
- Longer lead times for quotes and policy issuance
Timeline for Finding Replacement Coverage
Don’t underestimate how long the replacement process takes in this market:
| Step | Typical Timeline |
|---|---|
| Request loss runs from current carrier | 2 – 4 weeks |
| Gather all fleet and driver information | 1 – 2 days |
| Broker submits to multiple carriers | 1 – 2 days |
| Carriers review and return quotes | 1 – 3 weeks |
| Review quotes, select carrier, bind coverage | 3 – 7 days |
| COIs issued to clients and contracts | 1 – 3 days |
| Total process | 4 – 8 weeks |
If your policy expires in less than 30 days and you haven’t started this process, you’re in emergency territory. Contact a broker immediately.
How First Heritage Can Help
First Heritage Insurance Agency has been helping Long Island fleet owners navigate carrier exits and hard markets for years. We’ve already placed dozens of former Adirondack and Mountain Valley policyholders with new carriers, and we’re prepared to do the same for you.
What we bring to the table:
- Access to 50+ commercial auto carriers, including specialty markets that specifically target displaced policyholders
- Experience with the COI requirements that Long Island contractors and fleet operators need to meet
- Fast turnaround on quotes, because we know you’re working against a deadline
- Honest pricing guidance so you know what to expect in this market
If your commercial auto coverage is through Adirondack Insurance Exchange or Mountain Valley Indemnity Company, contact us today for a replacement quote. Don’t wait for your non-renewal date to become a coverage lapse. Every day without a plan is a day closer to driving uninsured.
