Garret Graves: “Mr. Chairman, I am here today to correct an inequity as I see it in the car and truck renting and leasing industry. By…”

“Mr. Chairman, I am here today to correct an inequity as I see it in the car and truck renting and leasing industry. By reforming vicarious liability to establish a national standard that all but a small handful of States already follow, we will restore fair competition to the car and truck renting and leasing industry and lower costs and increase choices for all consumers. Currently, a small number of States impose vicarious liability, or liability without fault, on companies simply because they own a vehicle involved in an accident. Whether or not the vehicle is at fault is irrelevant. These vicarious liability lawsuits cost consumers nationwide over $100 million annually. These laws apply to where the accident occurs. It does not matter where the car or truck was rented or leased. Since companies cannot prevent their vehicles from being driven to a vicarious liability State, they cannot prevent their exposure from these laws and then raise their rates accordingly. These higher costs have driven many small companies out of business, reducing the consumer choice and competition that keeps costs down.”