New York – Lawmakers To Introduce Bill To Stop Car Rentals Charging Higher Rates In Certain Boroughs

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    New York – Claiming geographic discrimination, three lawmakers want to put the brakes on car rental companies that charge higher rates to residents living in certain boroughs.

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    A survey of 11 car companies that do business in the five boroughs found two – Thrifty and Dollar, which are owned by the same parent company – charge Brooklyn, Queens and Bronx residents an additional fee based on their residence.

    Brooklynites pay an additional $55 daily to rent from either of those companies, Bronx residents pay $53 per day and Queens dwellers are charged $11 each day, according to a survey from Manhattan Borough President Scott Stringer, state Sen. Daniel Squadron (D-Manhattan/Brooklyn) and Assemblyman Brian Kavanagh (D-Manhattan).

    Staten Island and Manhattan residents are not subject to any extra fee.

    “They’re taking advantage, gouging consumers,” Stringer said. “It’s basic discrimination … you’re taking advantage of somebody who happens to live beyond Manhattan and that’s not right.”

    “It’s crazy that some of my constituents get penalized for living on the other side of the harbor,” added Squadron. “To discriminate against people who live in certain boroughs is unfair and crazy. Companies shouldn’t be charging communities. They should be figuring out their price points and applying them fairly.”

    He and Kavanagh are each co-sponsoring state bills likely to be introduced next week that would make it unlawful for car rental companies to charge customers more based on where they live. A similar bill stalled in committee last year.

    Stringer urged residents to shop around and avoid paying what he called a “borough tax.”

    Thrifty and Dollar, whose parent company could not be reached for comment, charge the additional fee for consumers renting in New York State, Newark, N.J. or Philadelphia. The fee applies regardless of where the customer intends to drive the rental car.


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    10 Comments
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    13 years ago

    Brooklyn gets the shaft will all transportation issues. Whether it’s the MTA eliminating our express buses, or insurance companies gouging us.

    13 years ago

    Maybe its because Brooklynites can’t drive. I want them to propse legislation that makes every New Yorker retake their driving test every 3 years- if you can’t pass it or are worried about passing it then you shouldn’t be driving!
    What is with NYers honking when the light is still red for me to go? To claim “they were in the middle of the intersection” so they must continue to drive through the red light when they didn’t even pass the cross walk when the light turned red?
    Its simple mathematics- you are less likely to get into an accident in Staten Island than in Brooklyn- there are less drivers!

    kgh5771
    kgh5771
    13 years ago

    Brooklyn? The transportation network there is great in comparison to Queens. Try getting to work in Manhattan from Bayside by public transportation. You can take the LIRR, but that’s really expensive.

    13 years ago

    2 companies owned by 1 parent company have a policy. So because one company has some stupid rules you need legislators to pass a bill to prevent the policy? What next it will be against the law to have more then 2 falafel balls in a half pita plate? Who pays these guys?

    13 years ago

    If they want to see discrimination based upon addresses call any auto insurance company and see how fast the price changes BASED UPON YOUR ADDRESS. If you live in Brooklyn your paying $4000.00 a year but if you live in Florida now its $500.00 it doesn’t matter where you drive.

    Gregaaron
    Gregaaron
    13 years ago

    Obviously it has nothing to do with the fact that they live outside of Manhattan, because Staten Island – which is further from there than Brooklyn, Queens or the Bronx – also has no extra fee. It is clearly a statistics issue – drivers from those boroughs presumably get into more accidents – and is presumably completely legal, just like any insurance company acts.

    13 years ago

    maybe they should do something abt the 20% sales tax on car rentals?

    13 years ago

    I rented from National a few years ago. ordered thru an Israeli agent – and payed ahead of time thru the agent. when I got to Newark and they saw my ny (brooklyn) license they said they can’t give it me at all. When they realized I paid already they typed my address as Israel and gave it to me. They explained that in Brooklyn and Queens there is a much higher rate of car thefts…

    Anonymous
    Anonymous
    13 years ago

    Insurance companies underwrite their rates based on their loss experience. The rentals in these areas, for whatever reason, show a higher liklihood of accidents and damage and they are entitled to charge higher fees to recover those costs. If you don’t like it, move to Manhattan.

    13 years ago

    The big question the attorney general should have is why are there more car thefts in these boros. Who are committing them. There are very simple answers to these questions that they could follow through on. People are bilked out of hundreds of millions of dollars in car insurance payments. Not by the insurance company, but by the police and investigatory agencies that don’t follow thru to check patters etc.

    They should also check why the no – fault and liabilty are likewise substantially higher in these boros than elsewhere.