A new automobile-sharing support has been taking its buyers for a ride, a state probe has discovered.
The business, RelayRides, allows vehicle owners to rent out their wheels for a charge by having to pay to use its on the web reservation technique.
Costs for the rentals fluctuate, based on the make and circumstances of the automobiles.
But investigators from the state Department of Financial Solutions say the company sold insurance without having a license, a violation of state law.
RelayRides also allegedly misled renters into believing they would not be liable for out-of-pocket costs if the owner’s vehicle was stolen or concerned in an accident.
The company will pay a $ 200,000 penalty and not conduct any company in New York until it submits a company strategy with the department.
Division Superintendent Ben Lawsky, whose agency supervises car insurance firms, mentioned: “It is merely unacceptable to promote New Yorkers a false bill of goods and disregard important client protections.’’