Jeff Duncan: “Vicarious liability laws in 3 states (NY, ME, CT and DC) impose unlimited liability on car and truck renting and leasing…”

“Vicarious liability laws in 3 states (NY, ME, CT and DC) impose unlimited liability on car and truck renting and leasing companies for injury and property damage solely because they own the vehicles. Eight other states have some limited form of vicarious liability. Vicarious liability is 'liability without fault' in that these companies have no involvement in or ability to prevent the accident. They cost consumers an average of $100 million annually. Companies nationwide are affected, not just in the few vicarious states, because the laws apply based on where the accident occurs, not where the car or truck is owned or registered. As a result, a car registered and rented in a non-vicarious state that gets into an accident in a vicarious state is subject to that state's vicarious laws. Companies have no way to protect themselves against these laws. I propose adding to H.R. 3550 (TEA LU) a provision to eliminate vicarious liability nationwide. Under this provision, only a company that is at fault or negligent in an accident could be held liable for damages.”