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HERTZ ANNOUNCES RESPONSIBLE RENTER QUALIFICATION PROGRAM FOR NEW YORK CITY RESIDENTS

 HERTZ ANNOUNCES RESPONSIBLE RENTER QUALIFICATION PROGRAM
 FOR NEW YORK CITY RESIDENTS
 NEW YORK, March 11 /PRNewswire/ -- The Hertz Corporation, which Jan. 2, 1992, instituted a residence-based car rental rate structure for New York City residents, today announced it will implement a Responsible Renter Qualification Program that enables renters to be exempt from higher residence-based rates.
 The program, which will be effective in 90 days, will allow residents of the Bronx, Brooklyn, Manhattan and Queens to apply for a Responsible Renter Qualification. Those who qualify will not incur the higher residence-based rates that include daily differentials of $56 for Bronx residents, $34 for Brooklyn residents, $15 for Queens residents and $3 for Manhattan residents when renting in the New York area. The higher rates do not apply to residents of these boroughs when renting elsewhere in the country.
 Qualification will require that the applicant have a driving record free of accidents or moving violations for three years and be employed for one year. A one-time $25 processing fee will apply. Processing time will be approximately two weeks. Qualification will remain valid as long as the renter is in compliance with the program's requirements and Hertz will periodically review the renter's compliance.
 "Our action is a response to concerns we have heard expressed by New York renters and public officials that responsible renters are being penalized for the recklessness of irresponsible renters and for the high liability costs triggered by them," said Hertz Chairman and Chief Executive Officer Frank A. Olson.
 Hertz instituted its residence-based pricing structure after sustaining liability losses in New York in excess of $70 million from 1988 to 1990. Upon analysis, it was determined that a disproportionately high percentage of this loss experience was attributable to New York City residents renting locally.
 "From the outset, our intention has been to cover our costs by pricing accordingly," said Olson. "We recognize that there are good, responsible drivers who are residents of the Bronx, Brooklyn, Manhattan and Queens and we are offering them a way to be exempt from the higher rates."
 The announcement comes one day prior to an expected vote by the New York City Council on a proposed local law (Intro. No. 71-A) that would prohibit residence-based pricing by car rental companies in New York City. Enactment of the local law, according to Hertz, would unfairly inhibit its ability to price its product in accordance with its costs and force it to raise rates, making out-of-city and out-of-state renters subsidize the high-risk renters.
 Hertz also believes the proposed local law to be unconstitutional under the Federal and New York State Constitutions and has said that it will sue to enjoin the law if it is passed.
 -0- 3/11/92
 /CONTACT: Joe Russo of Hertz, 201-307-2486/ CO: The Hertz Corporation ST: New York IN: AUT SU:


GK-TS -- NY006 -- 7184 03/11/92 09:00 EST
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Publication:PR Newswire
Date:Mar 11, 1992
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