Bill > S05312

This bill amends New York state insurance and personal property laws to authorize service charges for gap waivers in vehicle transactions. A gap waiver protects a buyer from being responsible for the difference (or "gap") between the vehicle's actual cash value and the remaining balance on their loan if the vehicle is totaled or stolen. The bill allows creditors or assignees to charge a separate service fee, not exceeding $750, in addition to the cost of motor vehicle creditor gap insurance when offering this waiver. The changes permit creditors to include the waiver charge and service fee in the calculation of payments under a retail installment contract or in the vehicle's capitalized cost. The bill also specifies that the gap waiver can only be offered if motor vehicle creditor gap insurance is available from a licensed property/casualty insurance company in New York state. These modifications provide more flexibility for vehicle dealers and creditors in how they structure and charge for gap waivers, while setting a clear limit on the additional service charge that can be imposed.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5312