An act has been introduced, that if passed, could affect New York drivers and AGRR shops. Act 268 is on the docket for further discussion in this year’s regular session.
Act 268’s goal is to change portions of the current insurance law that involve expanding service contracts to protect those leasing vehicles for personal use from unexpected “lease-end” charges for things that include windshield cracks and chips. Currently New Yorkers who lease a vehicle are subject to an additional charge at the end of their service contract to cover certain repair services that do not go over a certain amount.
If passed, 268 would add the following lines to the current law:
“In conjunction with a motor vehicle leased for personal use, such term shall also mean a contract to perform the repair, replacement or maintenance of property, or to provide indemnification for repair, replacement or maintenance, due to excess wear and use or damage for items such as tires, paint cracks or chips, interior stains, rips or scratches, exterior dents or scratches, windshield cracks or chips, missing interior or exterior parts that result in a lease-end charge not otherwise covered by a service agreement or warranty, provided any such payment shall not exceed the purchase price of the vehicle,” a portion of the act reads.
Currently Act 268 is being reviewed by the Committee on Insurance. To view the full act, click here.
If the act is passed they would go into effect immediately.