New York Assembly Bill A03706

New York 2025-2026 Regular Session

• Introduced: 1/30/25
• Refer: 1/30/25
• Refer: 1/7/26

Caption

Authorizes service charges for gap waivers.

Summary

Bill A03706 amends the insurance law and personal property law in New York to authorize service charges for gap waivers related to motor vehicle retail installment contracts. Specifically, it allows creditors or lessors to charge a service fee in addition to the cost of gap insurance coverage when waiving the buyer's liability for the gap amount in case of total loss due to theft or physical damage. The bill sets a maximum service charge of $750 and stipulates that the offer to waive liability is contingent upon the availability of motor vehicle creditor gap insurance from a licensed insurer.

Impact

The passage of this bill would modify existing regulations surrounding gap insurance in New York, providing creditors and lessors the ability to charge additional fees for waivers of liability. This change could impact consumers by potentially increasing the overall cost of financing a vehicle, as buyers may face higher charges when opting for gap waivers. Additionally, it may lead to increased revenue for creditors and dealers involved in the sale of gap insurance.

Sentiment

The sentiment surrounding Bill A03706 appears to be neutral, as there have been no recorded votes or significant committee discussions available. Without public opposition or support noted in the context provided, it remains unclear how stakeholders feel about the bill's provisions.

Contention

There may be potential contention surrounding the bill from consumer advocacy groups who might argue that additional service charges could unfairly burden consumers. On the other hand, creditors and dealers may support the bill for the flexibility it provides in charging for gap waivers, viewing it as a necessary adjustment to current insurance practices.