SAVANNAH. GA.–A state legislator from Michigan proposed at a meeting here of his colleagues from other states that they pass a model measure to regulate insurance for rental cars.
State Rep. Alan Sanborn, R-Redmond, called for the legislation at the spring meeting of the National Conference of Insurance Legislators, reacting, he said to pressure put on customers to purchase unnecessary rental car insurance.
“This is one of those opportunities that we as legislators get to do something that is a great consumer protection,” he said.
Overzealous salesmen at rental car counters encourage customers to buy what Sen. Sanborn termed “unnecessary” insurance such as collision coverage.
“If you have collision on your car, you already have that (for rental cars), but you are getting these overzealous salesmen who twist and misrepresent and intimidate you into buying this very expensive insurance,” he said.
Sen. Sanborn said he has not worked out the details of how the model law would be crafted.
He presented legislation from New York that requires private passenger motor liability policies to also cover rental cars as a “placeholder” while his proposal is worked out over the next few months.
But he expressed concern that such an approach might shift too much of the responsibility onto the insurer.
“The thrust of the legislation is we want to ensure rental car companies are not incentivizing pushy salesmen to sell products that people don't need,” he said.
Mr. Sanborn said he will have a fully developed proposal for discussion by the time the organization meets this summer in Seattle.
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