New York Assembly Bill A08851

New York 2025-2026 Regular Session

• Introduced: 6/9/25
• Refer: 6/9/25
• Refer: 1/7/26

Caption

Relates to certain rental vehicle protections; provides that the rate caps charged by rental vehicle companies shall be tied to the consumer price index of all urban consumers over the previous year as reported by the United States Bureau of Labor Statistics; makes provisions of law permanent.

Summary

This bill amends New York’s General Business Law provisions governing optional vehicle protection sold by rental vehicle companies. It keeps the existing tiered rate caps based on the rental vehicle’s manufacturer’s suggested retail price, but adds an annual inflation adjustment beginning January 1, 2027. Under the bill, the capped daily charges for lower-priced rental vehicles would rise each year based on the prior year’s Consumer Price Index for All Urban Consumers (CPI-U) as reported by the U.S. Bureau of Labor Statistics. The bill also removes the sunset date that currently applies to the rental vehicle protection provisions, making them permanent rather than expiring in 2028. For vehicles with a manufacturer’s suggested value above $50,000, the bill leaves the charge uncapped by a fixed dollar amount, subject instead to fair market value as determined by the rental vehicle company. The measure takes effect immediately, while the rate-cap changes begin on the ninetieth day after enactment and the CPI-based adjustments begin in 2027.

Impact

The bill would amend section 396-z of the General Business Law and revise chapter 109 of the laws of 2018 to eliminate the existing expiration date for rental vehicle protection rate caps. It would require rental vehicle companies to continue observing the statutory price limits for optional vehicle protection, while also allowing those limits to increase annually with inflation for certain vehicle price tiers. The practical effect is to preserve consumer protections in the rental car market, provide ongoing regulatory certainty, and reduce the likelihood that the caps become outdated over time.

Sentiment

No committee transcript or recorded vote information was provided, so there is no direct evidence of debate or partisan division in the materials supplied. Based on the bill text and caption, the measure appears to be framed as a consumer-protection and modernization bill, with an emphasis on maintaining rental vehicle protections while updating the caps for inflation. The absence of recorded opposition or vote data suggests no documented controversy in the available record.

Contention

The main policy issue apparent from the bill is how rental vehicle protection charges should be regulated over time. Supporters would likely favor making the protections permanent and indexing the caps to CPI-U so the limits do not erode with inflation. Potential points of contention could include whether annual inflation adjustments are appropriate, whether the cap levels are too low or too high for rental companies, and whether the uncapped treatment for higher-value vehicles should remain tied to fair market value. No specific opposing arguments or stakeholders are identified in the provided materials.