New York Insurance

The philosophers in the New York State Legislative are confrontation with a subtle question: Is it true, and only for a rental car agitation Company of $ 9 per day?

After contemplation and ethics of the filing of campaign contributions from businesses, that the legislature appears ready to “yes” can answer. They are a sign of the downfall of New York law unusual tenant of the exemption from liability for damage to cars. A bill the Senate is now new tenant, responsibility and businesses a fee of $ 9 per day for insurance against damage to the vehicle.

This insurance, known as Collision Damage Waiver and offered to any other state, has long been criticized by consumer demand calls for exorbitantly priced and unnecessary confusion.

Many people buy unnecessarily because they do not realize they are already provided by the staff of their automobile insurance or credit card.

The Collision Damage Waiver is one of several insurance Add-ons across the passenger at a particularly inopportune. They are at the counter, there are a number of people in all eager to take the road, if it offers a menu of options incomprehensible.

In addition to C.D.W. there are options like P.A.I. (personal accident insurance) and A.L.I. (additional liability insurance) - all set out in long paragraphs into smaller characters that are not holiday light reading.

This leads to a lot of people buy at the end of collision insurance - in a game that runs on more than $ 3000 per year - they do not need. Le”Collision Damage Waiver is a crook,’’said Blair Horner, director of the legislative authority of the New York Public Interest Research Group. You entendez”à the last minute, long after you’ve booked the car, if you have no possibility of comparison or business must know that if the cover. We believe that the costs of insurance must automatically in the base price of the lease.”

Objections from consumers helped inspire efforts in 1980 to compel companies car rentals, insurance collided research base rental price. The proposals for national legislators have been established by a few large companies through the charter.

”Avis, Hertz and push all these economic laws,’’said Thomas S. Finn, Vice President of the State Foreign notice. But”except in Illinois and New York, we lost struggles on small businesses, a large portion of profits from additional fees. The mother and Pop operations have been effective lobbying their local legislators.”

Today is the only State of New York (Illinois still has the collision insurance), Avis and participates in many small businesses, insists that the legislature abandon. ”It makes no sense that policy in New York,’’said Finn. ”We would rather consistent with the rest of the country.”

Supporters of the new legislation say that some tenants are now trashing cars because of the decade, including former right to exemption from liability for damages of $ 100. ”If you buy a product, you should charge him,’’said Stephen B. Kaufmann, the Bronx Democratic Assemblyman, sponsorship, is the legislation.

Another argument in favour of legislation lies in the fact that the car rental should be optional for businesses to sell what people buy. Even if consumers have the right positive, even if Collision Damage Waiver is a crook, why should it illegal to sell overpriced, poorly unnecessary products? Many other companies - Health food stores come to mind - it all the time. This is the free market.

Of course, the free market rewards companies, the demand from consumers’ desire for simplicity. Some national cell phone companies are now developing business relationships by advertising rather than just plans nickel - and-diming customers with additional costs. Why not a few car rental innovative Company started advertising itself as a company, which are not surprised by additional taxes at the beginning of the holiday?

Maybe the problem is a lack of innovation in industry. Or maybe the problem lies elsewhere.