Washington–Legislation exempting leasing and rental car companies from liability in cases where renters or lessors don't have adequate insurance has passed Congress and been sent to President Bush.
The legislation pre-empts laws in 16 states that impose partial or complete "vicarious liability" on rental or leasing companies making them responsible for payment of damages in cases where the renter or lessor doesn't have insurance or enough insurance to pay damages.
The rental and leasing car industries have sought the legislation for years. It is mainly aimed at New York where the law imposes blanket vicarious liability on leasing and rental companies. As a result most major automobile manufacturers have pulled their auto leasing programs from the state.
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
