Rental car agencies

Tucked inside the recently signed $287 billion federal transportation funding act is a "tort reform" provision eliminating vicarious liability laws applying to auto rental and leasing Tucked inside the recently signed $287 billion federal transportation funding act is a "tort reform" provision eliminating vicarious liability laws applying to auto rental and leasing companies in 16 states and the District of Columbia.

The provision, opposed by the National Conference of State Legislators and some consumer groups, was authored by Rep. Sam Graves, R-Mo. It prohibits states from holding owners of motor vehicle rental and leasing companies liable for accidents involving their vehicles, provided there is no negligence or criminal wrongdoing on the owner's part.
companies in 16 states and the District of Columbia.

The provision, opposed by the National Conference of State Legislators and some consumer groups, was authored by Rep. Sam Graves, R-Mo. It prohibits states from holding owners of motor vehicle rental and leasing companies liable for accidents involving their vehicles, provided there is no negligence or criminal wrongdoing on the owner's part. Why was this law drafted? A plaintiff's attorney obtained a $20mm judgment against a rental car company under the theory that the company had failed to determine whether or not the driver was a good or bad driver.

What does this mean to you.....well, could ANY rental agreement bar you from recovering against the owner of rental equipment...say a loader is driven from your company storage area to a job site and while on the way an accident occurs....could you recover against the rental company? Most likely if the accident was not caused by something the rental company did or did not do, there would be no recovery.

Time to check with your insurance agent...you may need more coverage.