Illinois Insurance

Now, where laws to prevent car rentals from the sale of separate insurance for the protection of collisions are present, including New York and Illinois, other states are considering similar bans. But the issues are addressed, such as laws to serve consumers.

Now, where laws to prevent car rentals from the sale of separate insurance for the protection of collisions are present, including New York and Illinois, other states are considering similar bans. But the issues are addressed, such as laws to serve consumers.

The Federal Trade Commission and some say car rentals smaller, laws could increase prices, limiting the number of people can rent a car and hinder competition. Some industry leaders forecast price increases of up to 25 per cent.

But many state officials, consumers and other supporters say that the laws help consumers bye elimination of $ 5 to $ 15 per day, companies are insurance tack on the price of car rentals daily this regime.

In California, rental companies are allowed to sell insurance collision, but a law from 1988 up to $ 9 per day. All advertisements of the State is given the full cost of the lease, including insurance tax.

Rising prices

Supporters of the law agree that the price of car rentals in New York and Illinois, but they say that the increases are modest and partly due to other factors such as rising costs for the automotive sector. Richard D. Rogers, vice-director of the Illinois Department of Insurance, which some donors complain because collisions Versicherungskosten”wurde a profit center.”

The laws of New York and Illinois prevent companies from the sale of conflict of damage or CDW’s, basically the provisions of the lease to the spread of consumers under the responsibility of paying for damages, until the market value, if the car is damaged or lost during the rental period. Rental cars in both states now pay these expenses, which is part of the arrivals. The tenant to pay a small deductible if the car is damaged.

”I believe that the law works for consumers,’’said Stephen E. Mindell, Director of Consumer commitment to the New York State Attorney General. CDW was a Gimmick”that rents have been undertaken to generate income. Now there’s no rigamarole, it is entirely in black and white.”

New York, the legislature has led the fight for the adoption of the law has been even more enthusiastic. ”For consumers, this is the mother and the pie crust,’’said Howard L. Assemblyman Lasher, President of the Assembly’s insurance committee. Senator Joseph L. Bruno, the Senate of the State assistant guide of the majority, added:”The result is a level playing field.”

But the Federal Trade Commission believes that laws and other proposals to eliminate the right to acquisition of CDW as an option for serious problems for tenants. In a letter to the governor of Illinois, the Commission said,”this transfer of responsibility for the rental agencies can not reach that higher prices of commodities.”

Alamo Rent A Car in Fort Lauderdale, Florida, is a challenge the constitutionality of the law on Illinois, on the grounds that the company wins the right to compensation for loss of property. Alamo is that if car rentals are not allowed, fees to cover collision damage, Low-Cost Cars disappear. This, “said Philip S. Shailer, Senior Vice President of Alamo, it would be particularly unfortunate, resort in countries such as Florida.

CDW”The elimination means that all tenants pay more, whenever you rent for the negligence of some tenants,’’said Shailer. Consumers choose”currently down CDW is punished financially.”

Some studies show that at least half the tenants of cars, are able to choose decrease collisions of the coverage of damage.

Wayne Kaufmann, Senior Vice President of Enterprise Rent-A-Car in St. Louis, noted that under the law,”They start increasing concerns about, you are the arrivals and where cars are parked.”

”You can not charge enough for doing business in some of these neighborhoods,’’said Kaufmann.

The law of Illinois came into force on Jan 1, 1989 $ 200 with a pro rata basis, as reduced to $ 100. The right of New York and entered into force three months later, with a deductible of $ 100. The deductible charged to the tenant or the owner of the insurance company, if the car is damaged.