Auto Rental News
MenuMENU
SearchSEARCH

Enterprise Agrees to N.Y. Refunds of $2 Million

ALBANY, N.Y. -- Enterprise Rent-A-Car has agreed to refund approximately $2 million to consumers who purchased supplementary liability protection (SLP) in the state of New York during a five-mon...

by Staff
July 21, 2003
3 min to read


ALBANY, N.Y. -- Enterprise Rent-A-Car has agreed to refund approximately $2 million to consumers who purchased supplementary liability protection (SLP) in the state of New York during a five-month period in 2001.

In addition, Enterprise will pay $200,000 in costs to the state. The company's consent to a court order for refunds follows three years of litigation with the New York attorney general's office. However, the company continues to deny that it ever violated New York state law or deceived customers.

Ad Loading...

In a lawsuit originally filed in May 2000, Attorney General Eliot Spitzer alleged that Enterprise had failed to provide its customers with the minimum liability coverage required by state law. The minimum amount of personal liabiity coverage is $25,000 to $50,000 for bodily injury, $50,000 to $100,000 for death, and $10,000 for property damage.

Spitzer's lawsuit argued that instead of providing the state-mandated insurance coverage, Enterprise would sue its renters to recover any liability incurred by the company as the vehicle owner.

Further, Spitzer alleged, by informing customers that the company provided no insurance, Enterprise prompted more customers to purchase supplemental liability protection at an extra cost of $6.95 to $7.95 per day. The SLP provides consumers with $1 million in extra coverage.

"This litigation resulted in a significant change in the practices of this rental car company that benefits consumers," Spitzer said. "The court order compensates consumers who were deceived into purchasing liability insurance through Enterprise even after the state's highest court held that rental car companies are required by law to provide coverage for their renters."

However, Enterprise denies any wrongdoing. The dispute, Enterprise said, stems from an April 2001 change in state law. During the months following the change, Enterprise continued to use its pre-existing rental contracts but added an addendum that provided the coverage information required under the newly changed law.

Ad Loading...

"We still maintain that our approach to implementing the required contract change was timely and responsible," said Andy Church, Enterprise's New York group vice president and general manager. "But we understand and accept the state's viewpoint and have agreed to refund a portion of the SLP cost to any customer who purchased SLP from us in New York during that five-month period."

Enterprise Rent-A-Car estimated that approximately 100,000 customers purchased SLP in New York during the period in question, April through August of 2001. The refund will average $20 per customer.

"We made an administrative decision to implement our contract addendum on a timely basis," Church said. "The attorney general took exception to our decision, and we felt the refund was a pragmatic and cost-effective course of action for us. We do not, however, agree with the attorney general nor are we admitting to any wrongdoing."

Enterprise said it expects to mail refunds within 60 days from the date of the settlement agreement, dated July 17.


More Rental Operations

map of globe with regional corporate car rental rates
Rental Operationsby StaffAugust 25, 2026

U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%

Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.

Read More →
Sixt H1 financial results
Rental Operationsby StaffAugust 14, 2026

Sixt Revenue Tops $2.4 Billion in First Half of 2026

Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.

Read More →
Bobby Klyce in memoriam image
Rental Operationsby Chris BrownAugust 13, 2026

In Memoriam: Bobby Klyce, Avis Licensee Legend

The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.

Read More →
Ad Loading...
Vibe coding webinar promo image
Rental Operationsby StaffAugust 12, 2026

How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]

A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.

Read More →
Globe image with Text: GBTA Business Travel Forecast

Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027

Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.

Read More →
Car rental sign with financial graph in background
Rental Operationsby Chris BrownAugust 2, 2026

Avis Cuts Fleet as Summer Demand Trails Expectations

Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.

Read More →
Ad Loading...
car rental booking engine on computer screen with text: Bookings aren't the whole story
Rental OperationsAugust 1, 2026

Why Bookings Are Only the Start of the Rental Day

A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.

Read More →
Rental Operationsby Chris BrownJuly 31, 2026

This Is the Oldest Car Rental Advertisement You’ll Ever See

This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.

Read More →
A counter agent chats with a customer over a rental counter
Rental OperationsJuly 21, 2026

The Desk Upsell Is Costing Operators More Than it Earns

Counter upsells generate revenue, but they can also slow transactions, erode trust, and cost repeat business. Fully inclusive pricing may offer operators a better path to long-term value.

Read More →
Ad Loading...
U-Save Mauritius team

U-Save Expands Indian Ocean Presence with New Master Franchise for Mauritius

The franchise has been acquired by Mauritian travel entrepreneur Umarfarooq Omarjee, an established figure in the island's tourism and mobility sector.

Read More →
Ad Loading...