2010-08-20 / Top Stories

Pheffer Sets New Rental Car Insurance Law

Assemblywoman Audrey I. Pheffer announced that legislation she introduced prohibiting insurance companies from mandating the use of a particular rental vehicle company, has been signed into law.

“This legislation ensures that consumers are aware of their rights during a time, usually after an accident, where they are dealing with many difficult issues,” said Pheffer. The statute prohibits insurers from requiring an insured to use a particular ren tal vehicle company; req uires insurers processing claims to disclose that the insured has the right to use any rental vehicle company; requires insurers to inform consumers of the rights granted under this section. The bill does not affect the ability of insurers to enter into preferred partner relationships with rental car companies.

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