RelayRides, a car-sharing service that matches car owners with third-party renters, agreed to stop conducting business in New York State after receiving a cease-and-desist order from State Superintendent of Financial Services Benjamin M. Lawsky, who accused the rental service of false advertising and called its insurance coverage through Hudson Insurance Co. of New York "illegal and inadequate."
Lawsky (pictured) also issued a consumer alert to warn potential New York RelayRides renters that the company's auto coverage could leave them financially accountable for an accident, despite the company's claims.
According to a press release from the New York State Department of Financial Services (DFS), RelayRides informs New Yorkers that they would not be liable for out-of-pocket expenses in the event the car being rented is stolen or involved in an accident, as it maintains a $1 million liability policy through Hudson for injury or damage to third parties.
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