Illinois Insurance

After two years of intense lobbying by car rental companies in New York legislative, or at least mitigate the condition of strict law on insurance rental cars, several lobbyists and key legislators say.

The companies have chafed for a decade after the law hats drivers is the responsibility for damage to a rental car and prohibits the sale of damage caused by collisions of exemptions, added that insurance for consumers since denounces for a long time as a waste of money from tenants.

Proponents say that the law of the nation hardest, has slowed abusive practices in rent. But the sector has protested, it costs too much, rising rents and sending small businesses in operation.

”New York has by far the most restrictive laws of the country,’’said Ray Wagner, Vice President for Legislative Enterprise Rent-A-Car, headquartered in St. Louis. ”It is burdensome to industry and consumers.”

While the industry has occasionally a sympathetic ear, the Capitol, particularly in the Republican control of the Senate, its proposals for actions were never very far in the legislature. But it could be the year. A bill now by the two houses were on the cover is a driver of liability for damage caused by vehicles - currently $ 100 - and therefore the sale of damage to exemptions. The bill is expected that the Senate word to get a vote this week, and lobbyists and legislators say it is likely to occur.

The potential rollover is a history of violent debates about the merits of the law, but it is also an apprenticeship in the workings of Albany. Each year, hundreds of interest groups, changes in public actions are not able to DIN and the inertia of the Capitol. The advantage belongs to those who have large sums of money to the task.

In the 1980’s, there were widespread complaints of firms car rental and a certain irritant was the Collision Damage Waiver. Says critic abandonment was too expensive, a huge victory for industry Maker, and that drivers are often under pressure to buy, even if they do not need because they had their own insurance, or their cards Credit focused on the damage.

”The waiver is known consumer rip-off, one of many in this sector,’’said Blair Horner, legislative power and the director of the New York Public Interest Research Group.

Abandonment was a particularly sensitive issue in New York City, where many residents have no cars or auto insurance and, therefore, often felt compelled to buy, if the waiver of them leased. (The exemption applies only for damage to the rental car. Other types of liability, such as damage to property or other medical care, nor with the driver.)

During 1988, the legislature has completely changed the rules. It prohibits the sale of damage to exemptions in New York the only country with such a ban. And it shifts the responsibility for damage to a rental car drivers, limiting the driver’s responsibility to just under $ 100. Only one other state, Illinois, hats of responsibility, and it sets the limit at $ 7500

The arrivals of the industry for a long time, trying to repeal the law, but so far most, or the house of the legislature was to fly would increase the liability limit to $ 300 proposals were never right.

The last assembly bill is now in the committee of consumer protection, including the president, Audrey Pheffer of Queens, said:”This is a pretty good chance to send us something like the soil, if it is not.”

Assembly Speaker Sheldon Silver may, as a general rule, as its nature and with legislation against the law in 1988 and said he could support a repeal. ”I think it is clear that we must do something,”he said.

Interest growing in the bill is followed by an aggressive attempt by several pressure groups the most powerful Capitol, on behalf of the company, Avis, Hertz Corporation and Industries of the Republic, which recently changed its name to AUTONATION, owner of Alamo Rent-A-Car and National Car rental.

The company spent a combined $ 90000 on lobbying in Albany in 1997, $ 173000 in 1998 and only $ 62000 in the first quarter of this year, according to the reports of the Temporary State Commission for lobbying.