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Why is there such a price difference from state to state on the liability insc?

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Why is there such a price difference from state to state on the liability insc?

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Old Apr 9, 2005 | 3:43 pm
  #1  
RCC
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Join Date: Apr 2003
Location: Roswell, GA USA
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Why is there such a price difference from state to state on the liability insc?

Well my buddy rented a car a car in OR, car cost was like $30 daily. The liability cost was $21.95 daily.

Holy cow, talk about doubling the cost of the rental.

I was in NY recently, cost for the liability insc was only $12.95 day.

Ric
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Old Apr 10, 2005 | 7:00 pm
  #2  
 
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Hertz must provide basic, PRIMARY liability insurance by law in New York and other "vicarious liability" states, so they just include the cost of basic liability in the daily rate. It's costly for rental agencies to do business in New York State as they must pay out all at-fault liability claims involving their vehicles, even if the renter has liability insurance on his or her own car.

Oregon is probably not a vicarious liability state (someone posted a list on another thread here a while back), so their price for ALI is higher.
wahooflyer is offline  
Old Apr 16, 2005 | 5:04 pm
  #3  
 
Join Date: Oct 2003
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Originally Posted by wahooflyer
Hertz must provide basic, PRIMARY liability insurance by law in New York and other "vicarious liability" states, so they just include the cost of basic liability in the daily rate. It's costly for rental agencies to do business in New York State as they must pay out all at-fault liability claims involving their vehicles, even if the renter has liability insurance on his or her own car.

Oregon is probably not a vicarious liability state (someone posted a list on another thread here a while back), so their price for ALI is higher.
It depends on state laws. I am UK resident so i always reserve here and get inclusive rate when i need a car in the US but if i rent there in US i have noticed that insurance and taxes in vegas are more expensive than in LA. I suppose it varies just as sales tax does from state to state. New york probably the most expensive (for everything!!)
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