RelayRides, a car-sharing service that matches car owners withthird-party renters, agreed to stop conducting business in New YorkState after receiving a cease-and-desist order from StateSuperintendent of Financial Services Benjamin M. Lawsky, whoaccused the rental service of false advertising and called itsinsurance coverage through Hudson Insurance Co. of New York“illegal and inadequate.”
Lawsky (pictured) also issued a consumer alert to warn potentialNew York RelayRides renters that the company's auto coverage couldleave them financially accountable for an accident, despite thecompany's claims.
According to a press release from the New York State Departmentof Financial Services (DFS), RelayRides informs New Yorkers thatthey would not be liable for out-of-pocket expenses in the eventthe car being rented is stolen or involved in an accident, as itmaintains a $1 million liability policy through Hudson for injuryor damage to third parties.
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