There is a newer version of the New York Consolidated Laws
2013 New York Consolidated Laws
GBS - General Business
Article 26 - (390 - 399-ZZZ) MISCELLANEOUS
396-Z - Rental vehicle protections.
NY Gen Bus L § 396-Z (2012) What's This?
* § 396-z. Rental vehicle protections. 1. For the purposes of this
section: (a) "Authorized driver" shall mean: (i) the person to whom the
vehicle is rented if a licensed driver; (ii) such person's spouse if
licensed and at least eighteen years of age; (iii) any person who
operates the vehicle during an emergency situation to a medical
facility; or (iv) any licensed driver expressly listed on the rental
agreement as an authorized driver.
(b) "Rental agreement" means any written agreement setting forth terms
and conditions governing the authorized driver's use of a rental
vehicle, as defined in section one hundred thirty-seven-a of the vehicle
and traffic law, for a period not to exceed thirty continuous days.
(c) "Rental vehicle company" means any person or organization, or any
subsidiary or affiliate, including a franchisee, in the business of
providing rental vehicles to the public from locations in this state.
(d) "Optional vehicle protection" means a rental vehicle company's
agreement not to hold an authorized driver liable for all or part of any
damage or loss to the rented vehicle, any loss of use of the rented
vehicle, or any storage, impound, towing or administrative charges for
which the authorized driver may be liable. The term "optional vehicle
protection" shall encompass within its meaning other similar terms that
may be used by rental vehicle companies, such as but not limited to
"Collision Damage Waiver", "CDW", "Damage Waiver", "Loss Damage Waiver",
"LDW", and "Physical Damage Waiver".
(e) "Renter" means a person or entity that obtains the use of a
private passenger vehicle from a rental vehicle company under terms of a
rental agreement.
(f) "Consolidated facilities charge" means the allowable recovery by a
rental vehicle company from its renters of those fees, including any
taxes or fees paid on such fees, for the finance, design, construction
and operation of consolidated airport facilities and or the finance,
design, construction and operation of common use transportation systems
that move passengers between airport terminals and those consolidated
airport car rental facilities. The aggregate amount to be collected
shall not exceed the reasonable costs, as determined annually by an
independent audit paid for by the airport operator or its governing
entity, to finance, design, construct and operate those facilities and
common use transportation systems. The consolidated facility charge
shall apply only to vehicle rentals occurring at vehicle rental
locations subject to the imposition of such charge by an airport
operator or its governing entity.
(g) "Concession recovery fee" means the allowable recovery by a rental
vehicle company from its renters of those fees, including any taxes or
fees paid on such fees, which an airport operator or its governing
entity imposes on a rental vehicle company's applicable revenues, as
defined and stated in a concession agreement that authorizes a rental
vehicle company to operate at an airport located in this state. The
concession recovery fee shall apply only to vehicle rentals occurring at
vehicle rental locations subject to the imposition of such fee by an
airport operator or its governing entity.
(h) "Airport fees" means the consolidated facility charge and/or the
concession recovery fee as those terms are defined herein.
(i) "Concession agreement" means an agreement, permit or license
entered into between an airport operator or its governing entity and
rental vehicle company setting forth the terms and conditions under
which the rental vehicle company may transact its rental business at
such airport.
(j) "Consolidated airport facilities" means those buildings or
physical structures, including, but not limited to, parking garages,
parking areas and fueling systems, constructed by or on behalf of the
airport operator or its governing entity to be jointly used by all
rental vehicle companies operating at such airport pursuant to a
concession agreement.
2. (a) A rental vehicle company shall not charge more than nine
dollars per full or partial twenty-four hour rental day for optional
vehicle protection if the manufacturer's suggested retail price of the
rental vehicle is not greater than thirty thousand dollars. A rental
vehicle company shall not charge more than twelve dollars per full or
partial twenty-four hour rental day for optional vehicle protection if
the manufacturer's suggested retail price of the rental vehicle is
greater than thirty thousand dollars.
(b) A rental vehicle company shall not sell optional vehicle
protection unless the authorized driver agrees to the purchase of such
protection in writing at or prior to the time the rental agreement is
executed.
(c) A rental vehicle company shall not void optional vehicle
protection except for one or more of the following reasons:
(i) The damage or loss is caused intentionally or as a result of
willful, wanton, or reckless conduct of the driver.
(ii) The damage or loss arises out of the driver's operation of the
vehicle while intoxicated or impaired by the use of alcohol or drugs.
(iii) The rental vehicle company entered into the rental transaction
based on fraudulent or materially false information supplied by the
renter or authorized driver.
(iv) The damage or loss arises out of the use of the vehicle while
engaged in the commission of a crime other than a traffic infraction.
(v) The damage or loss arises out of the use of the vehicle to carry
persons or property for hire, to push or tow anything, while engaged in
a speed contest, operating off road, or for driver's training.
(vi) The damage or loss arises out of the use of the vehicle by a
person other than: an authorized driver; a duly licensed parent or child
over the age of eighteen thereof who permanently resides in the same
household; or a parking valet or parking garage attendant for
compensation and in the normal course of employment.
(vii) The damage or loss arises out of the use of the vehicle outside
of the continental United States when that use is not specifically
authorized by the rental agreement.
(viii) The authorized driver has failed to comply with the
requirements for reporting damage or loss as set forth in subdivision
five of this section.
(d) A customer may void optional vehicle protection at no charge
within twenty-four hours of purchase provided that the customer: (i) has
rented the vehicle for two or more days, (ii) appears in person at any
branch of the vehicle rental company together with the vehicle that
shall be subject to inspection, and (iii) signs a cancellation form
provided by the rental vehicle company.
3. Subject to the provisions of subdivisions six, seven, and nine of
this section, a rental vehicle company may hold an authorized driver
liable for actual damage to, or loss of, a rental vehicle, provided
that: (a) any claim for such damage shall be based on a physical survey
and shall be made upon the return of the rental vehicle, unless returned
by automation or after-hours which precludes such survey, in which event
any claim must be made within ten days after return; and (b) any charge
for repair of such damage shall be limited to actual and reasonable
costs and shall be assessed and billed separately and apart from the
rental agreement. For purposes of this subdivision, "returned by
automation" means a return acknowledged by machine receipt and where
there is no interaction with rental vehicle company personnel and
"after-hours" return means a return after normal business hours and in
which the keys and rental agreement are deposited in the rental vehicle
company office.
4. (a) Any rental vehicle company which states or permits to be stated
the rental costs of a rental vehicle in any advertisement shall state
conspicuously, in plain language and in conjunction with the advertised
rental cost of the vehicle, the daily rate of the applicable optional
vehicle protection, that the rate constitutes an additional daily charge
to the renter, that the purchase of such protection is optional, and
that prospective renters should examine their credit card protections
and automobile insurance policies for rental vehicle coverage.
(b) Where a written advertisement, including all print media, contains
the statement of the rental cost of the vehicle, the disclosure required
by this section shall be printed in type no less than ten point type.
(c) When the video presentation of a television or internet
advertisement by the rental vehicle company contains the written
statement of the rental cost of a vehicle, the depiction of the cost of
the optional vehicle protection shall be clear and conspicuous.
(d) When a radio advertisement or the audio presentation of a
television advertisement contains the statement of the rental cost of
the motor vehicle, the oral statement of the rental cost shall
immediately be accompanied by an oral statement of the cost of the
optional vehicle protection.
(e) When a telephone inquiry for the rental cost of a vehicle is made
to a rental vehicle company, the representative of the rental vehicle
company shall, in response to an inquiry by the caller, provide the cost
of the optional vehicle protection and state that the purchase of such
protection is optional and that the renter's personal automobile
insurance or credit card may provide coverage.
(f) Any rental vehicle company that offers optional vehicle protection
to an authorized driver shall inform the authorized driver in posted
signs or in pamphlets, written in plain language, of all of the
information required to be disclosed by this section. The requirements
of this paragraph shall be deemed to be satisfied if the rental vehicle
company places the posted signs or pamphlets prominently and
conspicuously where they may be easily seen or reached by customers.
(g) The following disclosure notice shall be made on the face of the
rental agreement either by stamp, label or as part of the written
contract or on any other written document provided to the authorized
driver at the time such driver takes possession of the vehicle, shall be
set apart in boldface type and in no smaller print than ten point type:
NOTICE: This contract offers, for an additional charge, optional
vehicle protection to cover your financial responsibility for damage or
loss to the rental vehicle. The purchase of optional vehicle protection
is optional and may be declined. You are advised to carefully consider
whether to purchase this protection if you have rental vehicle collision
coverage provided by your credit card or automobile insurance policy.
Before deciding whether to purchase optional vehicle protection, you may
wish to determine whether your credit card or your vehicle insurance
affords you coverage for damage to the rental vehicle and the amount of
deductible under such coverage.
(h) The contract shall also include in boldface type and in no smaller
print than ten point type, in plain language, any other conditions or
exclusions applicable to the optional vehicle protection. The rental
vehicle company shall also inform the authorized driver of his or her
right to inspect the vehicle pursuant to paragraph (c) of subdivision
five of this section.
5. (a) Upon return of the vehicle, termination of the rental contract,
or within ten days if returned by automation or after-hours, the rental
vehicle company shall furnish an incident report form and a notice,
pursuant to this paragraph, of the authorized driver's obligation to
execute and return to the rental vehicle company a complete and accurate
incident report describing any physical and/or mechanical damage. If the
vehicle is returned by automation or after-hours, such incident report
form and notice shall be mailed by overnight delivery service or
certified mail, return receipt requested, and another copy of such
notification shall be sent by regular mail. The rental vehicle company
shall retain for six years a copy of such notice and the certified mail
return receipt.
(b) Upon return of the vehicle, or within seventy-two hours if the
return is by automation or after-hours, the authorized driver or his or
her insurer must notify the rental vehicle company that they wish to
inspect the damaged vehicle. The inspection must be completed within
seven days of the return date of the vehicle. If the authorized driver
or his or her insurer does not request this inspection within the
seventy-two hour period, the authorized driver or his or her insurer
will be deemed to have waived this right.
(c) If the authorized driver declines or fails to complete and return
the incident report required pursuant to paragraph (a) of this
subdivision, the rental vehicle company shall, no sooner than twenty
days after the mailing of notification pursuant to such paragraph (a),
mail another copy of the incident report together with a letter stating
that the authorized driver has declined or otherwise failed to complete
and return the incident report. Such mailing shall be by overnight
delivery service or certified mail, return receipt requested, and
another copy of such notification by regular mail, with proof of mailing
by production of a certificate of mailing from the post office. Within
seventy-two hours of return of the vehicle, the authorized driver or his
or her insurer must notify the rental vehicle company that he or she
wishes to inspect the damaged vehicle. The inspection must be completed
within seven days of the return date of the vehicle. If the authorized
driver or his or her insurer does not request this inspection within the
seventy-two hour period, the authorized driver or his or her insurer
will be deemed to have waived this right. If the rental vehicle company
determines the damaged vehicle to be a total loss and subject to
salvage, such seventy-two hour period for notification or waiver of the
wish to inspect the damaged vehicle shall not apply, and the authorized
driver or his or her insurer shall have ten business days from the
authorized driver's receipt of notification from the rental vehicle
company pursuant to paragraph (a) of this subdivision to inspect the
damaged vehicle, unless the rental vehicle company agrees to provide
access to such damaged vehicle beyond the ten business days provided
herein. Within the limits provided in this paragraph, the rental vehicle
company shall identify the repairer of, and provide access to, the
damaged vehicle, in order to verify the nature and extent of damages,
repairs and repair costs, and/or repair estimates.
(d) All notices shall be mailed to the authorized driver's address as
stated on his or her license, or other address as designated by him or
her.
(e) The authorized driver shall complete and return the incident
report within ten days of the receipt of the notice.
(f) The notice required by this subdivision shall be in at least
twelve point bold face type and shall contain the statement: "Failure to
completely and accurately fill out and return an incident report within
ten days of receipt of this notice may make the authorized driver liable
for damages sustained to the rental vehicle. Except where the damaged
vehicle is determined to be a total loss and subject to salvage, the
authorized driver or his or her insurer has seventy-two hours from the
return of the vehicle to notify the rental vehicle company that he or
she wishes to inspect the damaged vehicle. The inspection must be
completed within seven business days of the return date of the vehicle.
If the authorized driver or his or her insurer does not request this
inspection within the seventy-two hour period, the authorized driver or
his or her insurer will be deemed to have waived this right. If the
rental vehicle company determines the damaged vehicle to be a total loss
and subject to salvage, such seventy-two hour period for notification or
waiver of the wish to inspect the damaged vehicle shall not apply, and
such right to inspect the damaged vehicle shall expire ten business days
from the authorized driver's receipt of this notice from the rental
vehicle company at the return of the vehicle or receipt of the first
mailing of this notice in the event of return of the vehicle by
automation or after hours. Upon request of the authorized driver or his
or her insurer, we will provide a copy of our estimate of the costs of
repairing the damaged motor vehicle."
(g) For purposes of this subdivision, an "incident report" shall be
defined as a motor vehicle accident report pursuant to section six
hundred five of the vehicle and traffic law or any similar appropriate
form furnished by the rental vehicle company.
(h) Provided, however, if the authorized driver is physically
incapable of completing the report, the requirements of this subdivision
shall lapse until after he or she is able to complete the report and is
notified that he or she must complete and return the report as required
by paragraph (b) of this subdivision.
(i) Provided, further, twenty days prior to commencing an action
against the authorized driver, the rental vehicle company must prove the
authorized driver had an additional opportunity to provide the incident
report by providing a second notice along with another incident report
by certified mail, return receipt requested, and another copy of such
notice and report by regular mail, with proof of mailing by production
of a certificate of mailing; and if the authorized driver provides the
rental vehicle company with a completed incident report within fifteen
days of the receipt of the notice, the provisions of this subdivision
shall be deemed satisfied.
6. (a) A rental vehicle company may hold an authorized driver liable
to the extent permitted under this chapter for physical or mechanical
damage to the rental vehicle that occurs during the time the rental
vehicle is under the rental agreement; provided, however, that a renter
shall not be liable for mechanical damage unrelated to an accident, nor
for any normal wear and tear or other mechanical damage that could
reasonably be expected from normal use of the vehicle, except in
instances where abuse or neglect by the driver is shown. For the
purposes of this subdivision, "actual and reasonable costs" shall mean
the repair price reduced by all discounts paid by the rental vehicle
company to the repairer of the vehicle, including costs for towing,
storage, and impound fees.
(b) The total liability of an authorized driver under paragraph (a) of
this subdivision for damage to a motor vehicle shall not exceed the
lesser of:
(i) the actual and reasonable costs that the rental vehicle company
incurred to repair the motor vehicle or that the rental vehicle company
would have incurred if the motor vehicle had been repaired, which shall
reflect any discounts, price reductions, or adjustments available to the
rental vehicle company; or
(ii) the fair market value of the motor vehicle immediately before the
damage occurred, as determined in the applicable market for the retail
sale of the motor vehicle, less any net disposal proceeds.
(c) The total liability of an authorized driver under paragraph (a) of
this subdivision for loss of a motor vehicle shall not exceed reasonable
costs incurred by the rental vehicle company for the loss due to theft
of the rental vehicle up to its fair market value, as determined by the
applicable market for the retail sale of that vehicle if it is
established that an authorized driver failed to exercise reasonable care
or that an authorized driver committed, or aided or abetted in the
commission of, the theft of the rental motor vehicle.
(d) Damages incurred by rental vehicle companies for the loss of use
of a rental vehicle and related administrative fees shall not be
recovered from authorized drivers.
(e) A rental vehicle company shall not hold an authorized driver
liable for any amounts that the rental vehicle company recovers from any
other party.
(f) A rental vehicle company shall not collect or attempt to collect
the amount described in paragraph (b) of this subdivision unless the
rental vehicle company:
(i) obtains an estimate from a repair company or an appraiser in the
business of providing such appraisals on the cost of repairing the motor
vehicle;
(ii) provides a copy of the estimate and photographic evidence upon
request to the authorized driver who may be liable under paragraph (a)
of this subdivision, or the insurer of the authorized driver; and
(iii) submits a copy of the estimate with any claim to collect the
amount described in paragraph (b) of this subdivision.
(g) A claim against an authorized driver resulting from damage or loss
to a rental vehicle shall be reasonable and rationally related to the
actual loss incurred. A rental vehicle company shall mitigate damages
where possible and shall not assert or collect any claim for physical
damage which exceeds the amount authorized under paragraph (b) of this
subdivision.
(h) If insurance coverage exists under the authorized driver's
applicable insurance policy, the authorized driver may require that the
rental vehicle company submit any claims to the authorized driver's
insurance carrier. Upon the request of an authorized driver, the rental
vehicle company shall submit any claims to the authorized driver's
insurance carrier and shall not make any written or oral representations
to the contrary, nor shall it make any written or oral representations
that it will not negotiate with the authorized driver's insurance
carrier.
7. (a) No rental vehicle company shall require any security, deposit,
or charge for damage in any form, by credit card or otherwise, during
the term of the rental agreement or pending resolution of any dispute.
(b) No rental vehicle company shall require a deposit or an advance
charge against the credit card of an authorized driver, in any form, for
damages to a rental vehicle which is in the authorized driver's
possession or control.
(c) No rental vehicle company shall require any payment to the rental
vehicle company, upon the authorized driver's return of the vehicle in a
damaged condition, until after the cost of the damage to the vehicle and
liability therefor is agreed to between the rental vehicle company and
the authorized driver or is determined pursuant to law; provided,
however, that a rental vehicle company is not precluded from presenting
a claim to the authorized driver pursuant to other provisions of this
section.
(d) Causes of action concerning the existence of, liability for, and
extent and cost of damage to the vehicle shall, where appropriate, be
commenced by a rental vehicle company in a commercial claims part in
accordance with the limitations and jurisdiction of the appropriate
court act.
8. No rental vehicle company shall advertise or quote a rental rate
that does not include all charges, except taxes or optional items and/or
services or any mileage charge, which an authorized driver must pay to
obtain a rental vehicle. Provided, however, a rental vehicle company
shall be permitted to separately quote and charge airport fees as
defined herein, which shall be in addition to the rental rate; and
provided further that advertised rental rates that include locations at
which airport fees apply shall clearly indicate that additional fees
apply.
9. No rental vehicle company shall hold any authorized driver liable
for any damage to, or loss of, a rental vehicle, as provided by this
section, unless the rental vehicle company prominently discloses, on the
rental agreement, in at least ten point bold face display, the nature
and extent of such liability and such driver's rights and
responsibilities under this section.
10. (a) A rental vehicle company shall not charge in addition to the
rental rate, taxes, and mileage charge, if any, any fee which must be
paid as a condition of renting the vehicle, such as, but not limited to,
required fuel surcharges, each of which shall be separately stated on
the rental agreement. In addition, a rental vehicle company may also
state separately and charge, where applicable, airport fees as such term
is defined herein.
(b) In addition to the rental rate, taxes, applicable airport fees,
and mileage charge, if any, a rental vehicle company may charge for an
item or service provided in connection with a particular rental
transaction if the renter could have avoided incurring the charge by not
choosing to obtain or utilize the optional item or service, such as, but
not limited to, optional accessories or services requested by the
renter, service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
rented, and charges for refueling the vehicle with as much fuel as was
in the fuel tank at the beginning of the rental.
(c) A rental vehicle company shall make available detachable or
removable seats which meet the requirements of subdivision one of
section twelve hundred twenty-nine-c of the vehicle and traffic law.
(d) Fees for additional authorized drivers shall not exceed three
dollars per additional driver per rental day.
(e) A rental vehicle company shall furnish with each rental vehicle
pursuant to an agreement either an owner's manual or a diagram which
shall indicate the location and plain language description of the
functions necessary for the safe and efficient operation of the vehicle
which shall at a minimum include:
(i) Headlights;
(ii) Brakes and emergency brake;
(iii) Turn signal indicators;
(iv) Hazard lights;
(v) Windshield wipers and washers;
(vi) Horn;
(vii) Cruise control;
(viii) Heat control system including defrost systems;
(ix) Car locking systems; and
(x) Spare tire and car jack, tire wrench, and jacking locations. In
the event the rental vehicle company elects to include the owner's
manual pursuant to this section, if the owner's manual is not returned
with the vehicle, the renter shall be liable to the rental vehicle
company for the actual replacement cost of the owner's manual plus an
administrative fee.
11. Any clause or provision of a rental agreement inconsistent with
the provisions of this section shall be deemed void as against public
policy.
12. Any rental vehicle company found by a court of competent
jurisdiction to have violated a provision of this section shall be
subject to a penalty of not less than five hundred dollars nor more than
one thousand dollars for each violation.
13. (a) Whenever there shall be a violation of this section, an
application may be made by the attorney general in the name of the
people of the state of New York to a court of competent jurisdiction by
a special proceeding for the imposition of a fine or the issuance of an
injunction against any violation of this section, upon notice to the
rental vehicle company of not less than five days, to enjoin and
restrain the continuance of such violations.
(b) If the court finds that the defendant has, in fact, violated this
section, an injunction may be issued by such court, enjoining and
restraining any further violation, without requiring proof that any
person has, in fact, been injured or damaged thereby.
(c) In any proceeding pursuant to this subdivision, the court may
direct restitution and make allowances to the attorney general as
provided in section sixty-three of the executive law.
(d) In support of any application pursuant to this subdivision, the
attorney general is authorized to take proof, determine relevant facts
and issue subpoenae in accordance with the civil practice law and rules.
13-a. A rental vehicle company shall not use information from any
global positioning system technology to determine or impose any costs,
fees, charges, or penalties on an authorized driver for such driver's
use of a rental vehicle. The use of global positioning technology shall
not limit the right of a rental vehicle company to impose costs, fees,
charges, or penalties to recover a vehicle that is lost, misplaced, or
stolen. The provisions of this subdivision shall not be construed to
modify or supersede any other provision of law.
14. An authorized driver shall provide notice to the rental vehicle
company or law enforcement agency within twelve hours of learning of the
theft of the rental vehicle.
15. In accordance with any applicable federal law or rule, every
rental vehicle company shall display the following in a conspicuous
location, with lettering that is legible and that shall be at least
three-quarters of an inch boldface type:
NOTICE: New York State Law prohibits the following practices by rental
vehicle companies based upon race, color, ethnic origin, religion,
disability, sex, marital status, or age: (1) refusal to rent; (2) the
imposition of any additional charge (except in certain instances where
the renter is under the age of 25). In addition, it is unlawful for any
rental vehicle company to refuse to rent a vehicle to any person solely
on the requirement of ownership of a credit card.
* NB Effective until June 30, 2018
* § 396-z. Rental vehicle protections. 1. For the purposes of this
section: (a) "Authorized driver" shall mean: (i) the person to whom the
vehicle is rented if a licensed driver; (ii) such person's spouse if
licensed and at least eighteen years of age; (iii) any person who
operates the vehicle during an emergency situation to a medical
facility; or (iv) any licensed driver expressly listed on the rental
agreement as an authorized driver.
(b) "Rental agreement" means any written agreement setting forth terms
and conditions governing the authorized driver's use of a rental
vehicle, as defined in section one hundred thirty-seven-a of the vehicle
and traffic law, for a period not to exceed thirty continuous days.
(c) "Rental vehicle company" means any person or organization, or any
subsidiary or affiliate, including a franchisee, in the business of
providing rental vehicles to the public from locations in this state.
2. No rental vehicle company renting private passenger motor vehicles
shall, in rental agreements of not exceeding thirty continuous days,
hold an authorized driver liable for actual damage to, or loss of, such
rental vehicle (including loss of use), except where: (a) the damage or
loss is caused intentionally by an authorized driver or is caused by
such authorized driver's willful and wanton misconduct; (b) the damage
or loss arises out of an authorized driver's operation of the motor
vehicle while intoxicated by alcohol or impaired by the use of drugs
within the meaning of section eleven hundred ninety-two of the vehicle
and traffic law; (c) the damage or loss arises out of an authorized
driver's participation in any organized speed racing competition; (d)
the damage or loss arises out of the use of the vehicle when carrying
persons or property for hire; (e) the damage or loss arises out of the
use of the vehicle while an authorized driver is committing a felony or
otherwise engaged in a criminal act in which the damage or loss of such
vehicle is caused by such criminal activity; or (f) the authorized
driver fails to furnish the rental vehicle company a report of an
accident and the rental vehicle company complies with the following
procedure:
(i) At return of the vehicle, at the termination of the rental
contract or within ten days if returned by automation or after-hours,
the rental vehicle company shall furnish an accident report and a
notice, pursuant to this paragraph, of the authorized driver's
obligation to complete the accident report.
(ii) If the authorized driver declines or fails to complete the
accident report, the rental vehicle company shall mail within ten days a
notice, by certified mail, return receipt requested and by regular mail,
with proof of mailing by production of a certificate of mailing from the
post office, along with another accident report, together with a letter
stating that the authorized driver declined or otherwise failed to
complete the accident report and will be held liable for damages to the
rental vehicle for failing to complete the accident report.
(iii) All notices shall be mailed to the authorized driver's address
as stated on his license, or other address as designated by him.
(iv) The authorized driver shall complete the accident report within
fifteen days of receipt of the notice.
(v) The notice as required by this paragraph shall be in at least
twelve point bold face type and shall contain the statement "Failure to
fill out an accident report within fifteen days will make the authorized
driver liable for damages sustained to the rental vehicle".
(vi) For purposes of this paragraph, an accident report shall be
defined as a motor vehicle accident report pursuant to section six
hundred five of the vehicle and traffic law or any similar appropriate
form furnished by the rental vehicle company.
(vii) Provided, however, if the authorized driver is physically
incapable of completing the report, the penalties hereunder shall lapse
until after he is able to complete the report and is notified that he
must complete the report as set forth in subparagraph (ii) of this
paragraph, and fails to do so.
(viii) Provided, further, thirty days prior to commencing an action
against the authorized driver, the rental vehicle company must provide
the authorized driver an additional opportunity to provide the accident
report by providing a further notice along with another accident report,
by certified mail, return receipt requested and by regular mail, with
proof of mailing by production of a certificate of mailing; and the
rental vehicle company cannot hold an authorized driver liable under
this paragraph, if the authorized driver provides the rental vehicle
company with a completed accident report within fifteen days of the
receipt of the notice.
3. Notwithstanding subdivision three and subject to subdivision six of
this section, a rental vehicle company may hold an authorized driver
liable for actual damage to, or loss of, a rental vehicle caused by such
authorized driver, up to a maximum of one hundred dollars, provided
that: (a) any claim for such damage shall be based on a physical survey
and shall be made upon the return of the rental vehicle, unless returned
by automation or after-hours which precludes such survey in which event
any claim must be made within ten days after return; and (b) any charge
for repair of such damage shall be limited to actual costs and shall be
assessed and billed separately and apart from the rental agreement. For
purposes of this subdivision, "returned by automation" means a return
acknowledged by machine receipt and where there is no interaction with
rental vehicle company personnel and "after-hours" return means a return
after normal business hours and in which the keys and rental agreement
are deposited in the rental vehicle company office.
4. No rental vehicle company shall directly or indirectly agree, for a
charge, to waive any claims against an authorized driver for any damage
to, or loss of, the rental vehicle (including loss of use) during the
term of a rental agreement not exceeding thirty continuous days.
5. (a) In the event of damage to a rental vehicle for which an
authorized driver is responsible under subdivision three of this section
and is not covered by an automobile insurance policy, the rental vehicle
company shall charge no more than the actual cost paid by the rental
vehicle company in repairing such vehicle; provided, however, if such
damaged vehicle cannot be repaired because parts necessary to effect the
repair are not available within a reasonable period of time, the rental
vehicle company may charge no more than the amount in the standard motor
crash guide, or similar insurance industry crash guides.
(b) For purposes of this section, "actual cost":
(i) shall mean the repair price, reduced by all discounts, paid by the
rental vehicle company to the repairer of the vehicle; and
(ii) may include a reasonable factor for loss of use, based upon rates
applicable to the vehicle in effect at the time the rental agreement was
executed on the basis obtained by the authorized driver, to reflect lost
rental revenues, less expenses and depreciation, due to loss of use of
the damaged vehicle that is not a total loss, in proportion to
utilization rate experience documented by the rental vehicle company for
such type of vehicle.
(c) Upon written request from the authorized driver or such authorized
driver's representative, including an insurer, the rental vehicle
company and its representatives shall identify the repairer of, and
provide access to, the damaged vehicle, in order to verify the nature
and extent of damages, repairs and repair costs, except the right to
access provided herein shall expire after ten business days following
the authorized driver's receipt of notification from the rental vehicle
company.
6. No rental vehicle company may require any security, deposit, or
charge for damage in any form, by credit card or otherwise, during the
term of the rental agreement or pending resolution of any dispute.
7. No rental vehicle company shall advertise, quote or charge a rental
rate that does not include all charges, except taxes and any mileage
charge, which an authorized driver must pay to obtain a rental vehicle.
8. No rental vehicle company shall hold any authorized driver liable
for any damage to, or loss of, a rental vehicle (including loss of use),
as provided by this section, unless the rental vehicle company
prominently discloses, on the rental agreement, in at least ten point
bold face display, the nature and extent of such liability and such
driver's rights and responsibilities under this section.
9. (a) A rental vehicle company shall not charge in addition to the
rental rate, taxes and mileage charge, if any, any fee which must be
paid as a condition of renting the vehicle, such as, but not limited to,
required fuel or airport surcharges, nor any fee for transportation to
the location where the rental vehicle will be delivered.
(b) In addition to the rental rate, taxes and mileage charge, if any,
a rental vehicle company may charge for an item or service provided in
connection with a particular rental transaction if the renter could have
avoided incurring the charge by not choosing to obtain or utilize the
optional item or service, such as, but not limited to, optional
accessories or services requested by the renter, service charges
incident to the renter's optional return of the vehicle to a location
other than the location where the vehicle was rented, and charges for
refueling the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental.
(c) A rental vehicle company shall make available detachable or
removable seats which meet the requirements of subdivision one of
section twelve hundred twenty-nine-c of the vehicle and traffic law.
(d) Fees for additional authorized drivers shall not exceed two
dollars and fifty cents per person for the first rental day and one
dollar per day thereafter; provided, however, in no event shall the
total charge exceed five dollars per additional driver.
10. Any rental agreement or other contract inconsistent with the
provisions of this section shall be deemed void as against public
policy.
11. Any rental vehicle company found by a court of competent
jurisdiction to have violated a provision of this section shall be
subject to a penalty of not less than five hundred dollars nor more than
one thousand dollars for each violation.
12. (a) Whenever there shall be a violation of this section, an
application may be made by the attorney general in the name of the
people of the state of New York to a court of competent jurisdiction by
a special proceeding for the imposition of a fine or the issuance of an
injunction against any violation of this section, upon notice to the
rental vehicle company of not less than five days, to enjoin and
restrain the continuance of such violations.
(b) If the court finds that the defendant has, in fact, violated this
section, an injunction may be issued by such court, enjoining and
restraining any further violation, without requiring proof that any
person has, in fact, been injured or damaged thereby.
(c) In any proceeding pursuant to this subdivision, the court may
direct restitution and make allowances to the attorney general as
provided in section sixty-three of the executive law.
(d) In support of any application pursuant to this subdivision, the
attorney general is authorized to take proof, determine relevant facts
and issue subpoenae in accordance with the civil practice law and rules.
13. An authorized driver shall provide notice to the rental vehicle
company or law enforcement agency within forty-eight hours of learning
of the theft of the rental vehicle.
13-a. A rental vehicle company shall not use information from any
global positioning system technology to determine or impose any costs,
fees, charges, or penalties on an authorized driver for such driver's
use of a rental vehicle. The use of global positioning technology shall
not limit the right of a rental vehicle company to impose costs, fees,
charges, or penalties to recover a vehicle that is lost, misplaced, or
stolen. The provisions of this subdivision shall not be construed to
modify or supersede any other provision of law.
* NB Effective June 30, 2018
Disclaimer: These codes may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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