What Is the Graves Amendment in Florida?

The Graves Amendment in Florida aims to protect rental car companies. It is a federal law that shields rental car companies from vicarious liability based on vehicle ownership.

Before this law, a company could be held liable for accidents caused by people renting their vehicles. However, there are certain exceptions to the law in Florida. This was enacted in in 2005.

Historical Context of the Graves Amendment in Florida

It’s crucial to know the historical context of the Graves Amendment in Florida. This includes the origins of the Amendment and its legislative background.

Origins of the Amendment

The Graves Amendment was created after rental car company Enterprise was found liable for a fatal crash in the early 2000s. This caused Enterprise and other rental car companies to stop operations in certain states.

A politician in Missouri then created the amendment and urged the passage of a transportation bill. This law aimed to protect rental car companies from liability in accidents.

Legislative Background

By August 2005, the Graves Amendment was enacted into law. The federal statute protects vehicle rental companies from vicarious liability when a customer gets into an accident resulting in injuries or death.

Legal Provisions of the Graves Amendment in Florida

There are legal provisions of the Graves Amendment in Florida. They include protection offered to rental car companies and conditions under which liability may apply.

Protection Offered to Rental Car Companies

According to Florida Statute 324.021, rental car companies have protections through the Graves Amendment. They cannot be held vicariously liable for a renter’s actions in causing motor vehicle accidents. Before the law was enacted, rental car companies could be named as liable parties in claims and lawsuits.

Conditions Under Which Liability May Apply

Certain conditions allow vehicle rental companies to be held liable for accidents involving their cars. The Graves Amendment is waived when a rental company committed crimes or was negligent. Examples of such actions are renting a vehicle to a person they knew was going to commit a crime while using it or renting to someone without a valid license.

Effects on Consumers

The Graves Amendment imposes effects on consumers. Those include limitations for accident victims, consumer awareness and advocacy and impact on insurance requirements.

Limitations for Accident Victims

One limitation accident victims face thanks to the Graves Amendment involves the time they have to file an injury claim. According to Florida Statute 95.11, the statute of limitations for filing such action after suffering injuries in an accident involving a rental vehicle is two years.

Victims are also limited to what they can recover in compensation. Although the rental car company would cover up to $20,000 in bodily injury for accidents involving its vehicles, this might be insufficient in severe incidents.

Consumer Awareness and Advocacy

Consumer awareness and advocacy positively affect consumers because they help them understand a company’s reputation. It can help a person make a more educated choice on which rental car company to rely on when they temporarily need a vehicle.

Impact on Insurance Requirements

According to Florida Statute 627.7407, Florida operates on the no-fault insurance law. This requires drivers to obtain car insurance with at least $10,000 in personal injury protection (PIP) and property damage liability (PDL) coverage. However, insurance isn’t required to rent a vehicle. This can cause problems if an accident occurs and the person driving a rental car is underinsured or uninsured.

Exceptions to the Graves Amendment

There are exceptions to the Graves Amendment. Certain circumstances can lead to liability.

Circumstances Leading to Liability

Rental car companies can be held liable for car accidents caused by their customers in specific circumstances. If the company is negligent or commits a crime, it can be ordered to compensate victims for damages from an accident involving a rental vehicle.

Application of the Graves Amendment in Florida

It’s important to understand the application of the Graves Amendment in Florida. This involves specifics of implementation in state law and comparison with other states’ regulations.

Specifics of Implementation in Florida Law

Florida law implements the Graves Amendment in various ways. It protects rental car companies from vicarious liability for accidents involving their vehicles unless the company is negligent or engages in a crime. Car dealerships are also treated as rental car companies when leasing their vehicles to customers. This means they, too, cannot be held liable for accidents caused by lessees.

Comparison with Other States’ Regulations

Other states have similar regulations as Florida concerning the Graves Amendment. New York does not allow rental car companies to be held liable for damages in car accidents involving rentals. Ohio only allows such companies to be held liable if involved in a crime or when negligent. Massachusetts protects rental car companies from vicarious liability when customers commit torts.

Implications for Rental Car Companies

The Graves Amendment creates implications for rental car companies. This involves financial impacts and risk management strategies.

Financial Impact on Car Rental Businesses

Car rental businesses face a reduced liability with the Graves Amendment. However, companies may also face stricter insurance requirements.

Risk Management Strategies

If a customer purchases liability insurance through a rental car company, it can help cover any damages caused by an accident. A contract detailing the renter’s and company’s responsibilities should be readily available in case a crash occurs.

Frequently Asked Questions

 

What Does the Graves Amendment Do?

The Graves Amendment safeguards rental car companies from liability when customers get into accidents using their vehicles.

Is the Graves Amendment an Affirmative Defense?

The Graves Amendment is an affirmative defense to negligent entrustment claims.

What Is the Graves Amendment 2005?

The 2005 Graves Amendment states that owners who rent or lease their vehicles are not liable for issues that occur during the renter or lessee’s use or possession.

What Are the Rules About Renting a Car in Florida?

Florida requires most people renting a car to be at least 25. Those younger must pay added fees because they are considered a higher risk. The person also needs a valid driver’s license and a credit or debit card.