TRALA Opposes 300% Insurance Hike Targeting Rented and Leased Vehicles in NY
significantly higher levels of Minimum Financial Responsibility (MFR) only for motor vehicles rented or leased in the State of New York, as well as hold non-negligent renting and leasing companies liable for the unsafe actions of others who operate the rented and leased vehicles.
S 1911, introduced by Senator Thomas Libous (R-Binghamton), would require that motor vehicles rented or leased in New York State be covered by insurance providing at least $1 million per accident. The minimum $1 million combined single limit for rented and leased vehicles amounts to significantly higher levels of MFR than what current law requires for the exact same privately-owned motor vehicles. Current law requires minimum coverage of $25,000 for injuries to one person, $50,000 for the death of one person, $50,000 for injuries to two or more people, $100,000 for the death of two or more people, and $10,000 for injury or destruction of property of others in a single accident. The proposed $1 million requirement for rented and leased vehicles would result in an immediate increase of about 300%, which would be borne mostly by small business customers who use rented and leased vehicles in New York.
In a letter to Senate Transportation Committee members, TRALA President and CEO Thomas James points to the fact that many small businesses often used rented and leased vehicles to meet their transportation needs. James also references the provision in S 1911 that would hold non-negligent renting and leasing companies liable for other parties' unsafe operation of the vehicle, when he states that "In the past, such legal regimes have resulted in car and truck rental and leasing companies being forced to stop doing business in New York completely."
To see a copy of TRALA's letter to Senate Transportation Committee members, click here. A copy of S 1911 can be seen here. For questions, contact TRALA's Joe Sculley at email@example.com or by calling (703) 299-9120.