Drivers have long been led to believe that they have to have their accident-damaged vehicles repaired and replacements rented at shops selected by insurance companies. A new anti-steering law in New York, however, gives consumers the choice and requires insurers to inform them of their rights.

The bill, sponsored by State Senator John Sampson, Assemblymen Steven Cymbrowitz, Peter Abbate and Alan Maisel, and Assemblywoman Audrey Pheffer, was signed into law by Gov. David Paterson on August 13. It bars insurers from demanding that consumers use specific rental companies and requires them to inform consumers of their right to choose a vehicle rental company.

The law specifically targets insurers that contract with certain rental companies and mislead consumers into thinking they're only covered when renting from those companies. When contention is that when consumers are misled like this, they tend to gravitate to a body shop that offers “insurance-approved” rental replacements, unaware that nearly every shop can legally provide the same service.

Gil Cygler, owner of AllCar rent-a-car, which offers rentals on-site at collision repair facilities and new car dealers in New York, says the new law opens the door for shops to be seen as more than just repair centers.

“Any repair shop can offer replacement vehicles billable to insurance,” Cygler explains. “That’s a huge convenience advantage that customers really appreciate.”

For years, with contracted rental companies earning guaranteed insurance business, drivers and body shops were the ones losing out most. So lawmakers and consumer groups led by Cygler drove the cause to Albany, proposing a bill that let people know they had a choice.

Cygler hopes insurance companies reform the steering practice and provide greater choices for drivers, but he admits it will be a challenge.

“They’ll keep at it as long as people are falling for it,” he says. “Collision centers that want to offer their customers the convenience and renters who appreciate on-site replacement service should know they have those options, too.”