New York is different from other states when it comes to physical damage for a rental car.  Section 396-z of the  NY General Business Law requires all New York auto insurance policies issued to individuals or husband and wife, (Personal  or Commercial)  must have a Rental Vehicle Endorsement.   This endorsement applies when a vehicle liability policy insures less than five private passenger autos, station wagons, pickups, delivery sedans, panel trucks or vans.  Check with the insurance carrier or agent for a definition of each of these vehicles and how it effects the application of this endorsement.  One general definition of an eligible vehicle would be a motor vehicle with four wheels that is either a private passenger auto, pickup or van with a gross vehicle weight of less than 10,000 pounds and is not used in freight of delivery business.

Here is how the endorsement applies:

• Every policyholder has access to the coverage (regardless of having Comprehensive and or Collision on their NY policy)
• No dollar limit applies
• Relatives of the named insured are covered
• Coverage included loss of use claims by the rental company
• No deductible
• Coverage extend to all states, US Territories and Canada. (Coverage needs to be purchased if you are renting outside these locations.)
• Payment is made regardless of fault.
• Business use (except for hire risks) of rental vehicles is covered.

Restrictions:

• Rental agreements of 30 days are NOT covered
• Does not apply to non-owner policies
• Does not apply where the only scheduled auto is a pickup, delivery sedan, panel truck or van used for business purposes (other than farming)
• This endorsement only applies where the insured an individual or a husband/wife or family farm.
• The vehicle must be rented from someone in the rental vehicle business

Persons who do not have a New York auto insurance policy may consider purchasing Optional Vehicle Protection.  The maximum cost of this coverage by law is $9 per day for vehicles under $30,000 in value or $12 per day if the vehicle value is over this amount. 

This blog is only an outline of the law.  Please refer to your specific insurance carrier to confirm vehicle  definitions and how you vehicle is affected by this endorsement.