Skip to content

Senate approves legislation to include key fobs in car service contracts

The next time you lose the key fob for your car, the out-of-pocket costs might not break the bank.

Legislation was approved in the state Senate on Tuesday that would allow car dealerships to include the replacement of keys and key fobs to the list of items covered by service contracts, which is already allowed by 32 other states. Replacing a key fob can range from $250 to nearly $1,000, according to the Greater New York Automobile Dealers Association.

“This legislation will protect consumers against the often unexpected and high out-of-pocket costs associated with replacing a key or key fob,” said Sen. Neil Breslin, who sponsored the legislation.

Service contracts in New York are currently allowed to cover tire damage from road hazards, chips and cracks to windshields and dents to a vehicle.

Additionally, Greater New York Automobile Dealers Association President Mark Schienberg said the process for replacing a lost or damaged key fob is easier when it’s part of a service contract. “For a consumer, it’s a very very beneficial piece of legislation,” he said.

A copy of the memorandum from the Greater New York Automobile Dealers Association supporting the legislation is available below.

A memorandum from Hinman Straub notes that key fobs “are too small to regulate as a traditional insurance product.” As a result, they contend it’s appropriate to cover them in service contracts.

The legislation hasn’t been introduced in the state Assembly.


Click here to read the story in the Times Union.

Back To Top