New York CDW Sunset Clause Extended

The sunset clause for the amendment that allows New York car rental agencies to sell collision and loss damage waivers (CDW/LDW) to their customers was extended for an additional five years by the New York State Senate. After passing the New York State Assembly, the bill passed in the Senate by a vote of 62 to 0. Governor Andrew Cuomo signed the bill into law on Sunday.

In 1989, New York legislators took away car rental companies’ right to sell CDW and LDW, limiting the RACs to customer liability, which only required the renter to pay $100, despite how the accident occurred. The passage of the bill had a hand in forcing more than 300 car rental companies to close.

In 2002, the law was amended to allow car rental companies to sell CDW/LDW again. The amendment was extended in 2008, and again last month, to 2018.

The American Car Rental Association lobbied to ensure passage of the extension. “I am grateful to the efforts of ACRA, otherwise we would be back in the dark ages when LDW was banned in New York State,” said Gil Cygler, president and CEO of AllCar Rent-A-Car, which serves New York Cities’ boroughs. “It's a relief to know I have an organization that is working to protect my business. Without the extension of the law, it is doubtful we could offer the same service to the public.”

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.