PRIA, Government Policy, Made Personal

Summary

Owners who rent or lease cars are usually not legally responsible for injuries or property damage that happen while someone else has the car. That protection applies only if the owner is in the business of renting or leasing vehicles and neither the owner nor a related company did something negligent or criminal. This federal rule does not replace state rules that require owners to carry insurance or meet financial responsibility standards, and it does not stop states from holding rental companies liable for failing to meet those state insurance rules. The rule applies to any lawsuit started on or after the law was enacted, even if the harm or conduct happened before then. Definitions — Affiliate: a company or person that controls, is controlled by, or is under common control with the owner. Owner: someone who owns, holds title to, leases, or has use or possession of the vehicle in the rental business. Person: an individual or any kind of business or organization.

Title 49, §30106

Transportation, Source: USLM XML via OLRC

(a)In General.—

An owner of a motor vehicle that rents or leases the vehicle to a person (or an affiliate of the owner) shall not be liable under the law of any State or political subdivision thereof, by reason of being the owner of the vehicle (or an affiliate of the owner), for harm to persons or property that results or arises out of the use, operation, or possession of the vehicle during the period of the rental or lease, if—

(1)the owner (or an affiliate of the owner) is engaged in the trade or business of renting or leasing motor vehicles; and

(2)there is no negligence or criminal wrongdoing on the part of the owner (or an affiliate of the owner).

(b)Financial Responsibility Laws.—

Nothing in this section supersedes the law of any State or political subdivision thereof— (1)

(2)imposing liability on business entities engaged in the trade or business of renting or leasing motor vehicles for failure to meet the financial responsibility or liability insurance requirements under State law.

(c)Applicability and Effective Date.—

Notwithstanding any other provision of law, this section shall apply with respect to any action commenced on or after the date of enactment of this section without regard to whether the harm that is the subject of the action, or the conduct that caused the harm, occurred before such date of enactment.

(d)Definitions.—

In this section, the following definitions apply:

(1)Affiliate.—

The term “affiliate” means a person other than the owner that directly or indirectly controls, is controlled by, or is under common control with the owner. In the preceding sentence, the term “control” means the power to direct the management and policies of a person whether through ownership of voting securities or otherwise.

(2)Owner.—

The term “owner” means a person who is—

(A)a record or beneficial owner, holder of title, lessor, or lessee of a motor vehicle;

(B)entitled to the use and possession of a motor vehicle subject to a security interest in another person; or

(C)a lessor, lessee, or a bailee of a motor vehicle, in the trade or business of renting or leasing motor vehicles, having the use or possession thereof, under a lease, bailment, or otherwise.

(3)Person.—

The term “person” means any individual, corporation, company, limited liability company, trust, association, firm, partnership, society, joint stock company, or any other entity.

Editorial Notes

References in Text

The date of enactment of this section, referred to in subsec. (c), is the date of enactment of Pub. L. 109–59, which was approved Aug. 10, 2005.

§30106 Rented or Leased Motor Vehicle Safety and Responsibility

Summary

Title 49, §30106

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata