The bill maintains the status quo allowing states to hold companies liable if the vehicle did not operate properly. The bill also makes clear that companies are not excused from meeting state minimum insurance requirements on their motor vehicles. Minimum insurance requirements ensure that people involved in accidents with vehicles owned by rental companies have recourse to recover some damages. A small number of states subject companies that rent or lease vehicles to unlimited liability for the tortious acts of their renters and leasees, even if the rental company is not negligent. The Motor Vehicle Rental Fairness Act prohibits states from holding rental companies vicariously liable for the negligent actions of their renters and leasees.
Rental companies are still liable if they negligently rent the vehicle.
States can impose minimum insurance requirements on rental companies. Supporters American Automotive Leasing Association, American Car Rental Association, National Automobile Dealers Association, National Vehicle Leasing Association, Truck Renting and Leasing Association, Ford Motor Company and General Motors Corporation. During the trip, the driver fell asleep crashing into a canal. The driver and two passengers were killed. The fourth passenger was seriously injured.