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.”

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