Business Notes: Auto Rental

The price of a drive to the country just took an uphill climb for Hertz customers in New York City. Last week the rental-car agency imposed a surcharge on residents of four of the city's five boroughs who rent autos in the metropolitan area (spared: Staten Islanders). For Bronx residents, it means a $56-a-day boost. The firm says it aims to regain the millions of dollars it has lost under the state's vicarious-liability law, which places damage liability in the hands of a car owner -- in this case Hertz -- even if the owner isn't behind the wheel. But the real motive, contends New York City consumer affairs commissioner Mark Green, is to force a change in the law. Nine other states have such statutes, but the surcharge will apply only to New York City, where damage losses have been high.