{"id":353108,"date":"2016-12-06T13:52:04","date_gmt":"2016-12-06T18:52:04","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/injury\/car-accidents\/the-graves-amendment-and-rental-car-liability.html"},"modified":"2023-11-02T22:59:35","modified_gmt":"2023-11-03T03:59:35","slug":"the-graves-amendment-and-rental-car-liability","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/car-accidents\/the-graves-amendment-and-rental-car-liability.html","title":{"rendered":"The Graves Amendment and Rental Car Liability"},"content":{"rendered":"\n
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The Graves Amendment and Rental Car Liability<\/h1>\n\n
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\n By Ty McDuffey, J.D.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

The Graves Amendment is a federal law that shields rental car and leasing companies from liability for accidents solely because they own the vehicle. To hold them responsible, you must prove negligence\u2014such as poor maintenance or renting to an unqualified driver\u2014or criminal wrongdoing.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

If you’ve ever had a vehicle accident in a rented vehicle, you might wonder who’s responsible. Before 2005, rental car companies could be held legally responsible for accidents caused by the person driving their vehicle. But this shifted with the passage of the Graves Amendment. Now, in most cases, the at-fault driver\u2019s insurance covers damages<\/a>, not the rental company.<\/p>\n

This article explains how the Graves Amendment limits rental car company liability for accidents involving their vehicles. You’ll learn what this means for both drivers and rental car companies.<\/p>\n

A car accident attorney<\/a> near you can also offer legal advice targeted to your accident and recommend next steps.<\/p>\n

The Basics of the Graves Amendment<\/h2>\n

The Graves Amendment (found in\u00a049 U.S.C. \u00a7 30106<\/a>) is a federal law that Congress created as part of a federal highway bill in 2005. This rule is about the applicability of\u00a0vicarious liability<\/a>. It states rental car companies and those involved in leasing can’t be blamed for accidents just because they own or lease the motor vehicle.<\/p>\n

To pin the blame on leasing companies or car rental firms:<\/p>\n

The Renter Must Show the Company’s Negligence Led to the Mishap<\/strong><\/h3>\n

Imagine you rent a car, but the brakes don’t work, and you wreck. If the rental place knew about the bad brakes or didn’t check them as they should have, that’s called negligent maintenance. It means they didn’t properly care for the car, which led to your accident.<\/p>\n

Let’s say someone wants to rent a super-fast racecar. But they’ve never driven a car before, and they don’t have a driver’s license. If the rental place gives them the car anyway, that’s\u00a0negligent entrustment<\/a>. It means the company made a bad choice by letting someone without experience or a license drive a dangerous car.<\/p>\n

There Should Be Evidence of Criminal Wrongdoing on the Part of the Owner of the Motor Vehicle<\/strong><\/h3>\n

This one’s a bit simpler. It means that if the owner of the car rental company did something illegal with the car (or allowed something illegal to happen), they could be in trouble. For example, if they know the car was used in a robbery<\/a> and didn’t report it to the police, that’s evidence of criminal wrongdoing.<\/p>\n

In both situations, the idea is the same. If the rental place or the owner did something wrong (either by failing to maintain the vehicle or doing something illegal), they can be held responsible.<\/p>\n

What This Means for the Driver<\/h2>\n

If you’re in a car accident while driving a rental vehicle:<\/p>\n