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.”
