New York will now allow risk retention groups registered with the state, but not charted in New York, to offer commercial auto coverage to 501(c)(3) not-for-profit organizations, according to Governor Kathy Hochul’s office. The governor signed the new law into effect on September 15, 2023.
Previous regulations required that risk retention groups be domiciled in New York, according to Ithaca Carshare, a service that offers its members 24/7 access to vehicles. This made it difficult for many of these organizations to secure coverage.
In May of this year, Ithaca Carshare stopped offering its services because of a “lack of auto insurance for nonprofits in NYS,” the organization said in a statement earlier this year.
“By passing this legislation, we’re ensuring that Ithaca Carshare and similar not-for-profits can access the essential automobile insurance they need to remain open, flourish, and provide customers with critical access to transportation,” Governor Hochul said in a release. “This isn’t just a step forward in meeting our transportation challenges, it is also a vital part of our efforts to combat climate change by supporting the growth of carshare fleets and reducing carbon emissions.”
The bill also requires the superintendent of financial services to conduct a study on the impact of the law after it has been in effect for three years.
Ithaca Carshare reported it will begin operating again in March 2024.
“This bill not only saves our organization, but will allow nonprofit carshares across the state to open and flourish,” Ithaca Carshare Director Liz Field said in a release. “Carsharing is an important piece of solving many transportation challenges, while greatly reducing carbon emissions. I’m happy that New York is now in line with the rest of the country when it comes to carsharing.”
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