A new car-sharing service has been taking its customers for a ride, a state probe has found.
The company, RelayRides, allows car owners to rent out their wheels for a fee by paying to use its online reservation system.
Prices for the rentals vary, depending on the make and conditions of the cars.
But investigators from the state Department of Financial Services say the firm sold insurance without a license, a violation of state law.
RelayRides also allegedly misled renters into believing they would not be liable for out-of-pocket expenses if the owner’s car was stolen or involved in an accident.
The firm will pay a $200,000 penalty and not conduct any business in New York until it submits a business plan with the department.
Department Superintendent Ben Lawsky, whose agency supervises car insurance companies, said: “It is simply unacceptable to sell New Yorkers a false bill of goods and disregard important consumer protections.’’
Gov. Cuomo said, “Our administration will not tolerate when companies break the law and jeopardize New Yorkers’ safety.’’