How does the Graves Amendment affect a rental car accident case in NY?

Question

My son was injured and hospitalized after being hit by a rental car driver in New York. The police report was filed, and he's been in contact with the insurance company. However, due to the Graves Amendment, the insurance company claims he's only entitled to a maximum of $25,000. How does the Graves Amendment affect this case, and what steps can we take to ensure fair compensation?

Michael Bersani · Answer

The graves amendment essentially works like this: normally, under New York vehicle and traffic law section 388, the owner of the vehicle is vicariously liable for the negligence of the driver of the vehicle. But when long-term commercial lessor owns the vehicle, the graves amendment kicks in to exonerate the owner of the vehicle. Only the lessee/driver are liable. if that’s the case, you are stuck with the insurance policy that the driver/Lessee had, and you can’t tap into the insurance for the lessor. But even when there is a long-term lease, there are exceptions to the graves amendment, so you need to consult with an attorney to make sure there’s no way out of it.

Tim Akpinar · Answer

I'm sorry about your son's accident. The Graves Amendment serves to protect rental car companies. It shields them from liability resulting from the negligence of the driver who rented the vehicle. What steps can you take to ensure fair compensation? If you are not already working with a law firm, try to line up a free initial consult. Attorneys could advise more meaningfully about the Graves Amendment, its exceptions, and your son's specific rights here after reviewing file documents more closely. I hope your son is okay and is making a healthy recovery. Good luck

Jonathan R. Ratchik · Answer

So sorry to hear what happened to your son. As my colleagues correctly advised, the Graves Amendment shields rental car and leasing companies from vicarious liability (which hold owners legally responsible for the negligence of drivers as a matter of law). There are exceptions to the Graves Amendment, such as if the rental car company was negligent and such negligence contributed to the incident, e.g. negligent maintenance, negligent entrustment, etc. Here's an article I found online which you might find useful, https://www.findlaw.com/injury/car-accidents/the-graves-amendment-and-rental-car-liability.html

Stephen Bilkis · Answer

I’m sorry to hear about your son’s injury and the difficult situation you’re facing. It’s understandably frustrating when dealing with insurance issues on top of an already challenging recovery process. The Graves Amendment, a federal law passed in 2005, can impact rental car accident cases, including those in New York. It limits the liability of rental car companies when one of their vehicles is involved in an accident caused by a renter. Specifically, the Graves Amendment prevents rental car companies from being held vicariously liable for the actions of their renters. This means that if the driver of the rental car was at fault, the rental company is typically not responsible for paying damages, unless there is evidence of negligence on the part of the rental company, such as failing to maintain the vehicle or providing it to someone who is not authorized to drive. 
 
However, the Graves Amendment does not limit the ability of the at-fault driver’s personal insurance to cover damages, nor does it affect the victim’s ability to pursue a claim against the driver directly. In your case, if the driver of the rental car was at fault for the accident, your son may be entitled to compensation from the driver's personal insurance policy, not the rental company’s insurance policy. 
 
The $25,000 limit you mentioned is likely tied to the minimum coverage requirement for personal injury protection (PIP) under New York’s no-fault insurance laws. In New York, PIP is meant to cover medical expenses and lost wages for those injured in accidents, regardless of fault. However, PIP benefits may not be sufficient for all expenses, especially if the injuries are severe or long-term. 
 
To ensure fair compensation, your next steps would include the following: 
 
Review the driver’s insurance coverage: You should confirm whether the driver’s insurance provides adequate coverage beyond the $25,000 limit. If the driver has higher limits, you may be able to seek additional compensation for pain and suffering and other non-economic damages through a personal injury lawsuit. 
 
Examine your son’s own insurance policy: If your son has his own car insurance, particularly under uninsured or underinsured motorist coverage, this may provide additional compensation. This is important if the at-fault driver’s insurance is not enough to cover your son’s medical bills and other damages. 
 
Consider filing a lawsuit: If the driver has insufficient insurance, you may need to file a lawsuit to seek compensation for pain and suffering, lost wages, and other damages that exceed the no-fault insurance limits. 
 
Consult a personal injury attorney: Given the complexities of the Graves Amendment and no-fault insurance laws, it is advisable to consult with an experienced personal injury attorney. A lawyer can help navigate the insurance claims process, ensure that you are exploring all potential sources of compensation, and pursue a lawsuit if necessary. 
 
The Graves Amendment itself may limit the liability of the rental car company, but it does not prevent you from seeking compensation from the driver or their insurance. Ensuring that you understand all available options will help maximize your son’s compensation. 
 
Disclaimer: This response is for general informational purposes only and does not constitute legal advice. For personalized guidance, please consult a qualified attorney licensed in New York.

Q: How does the Graves Amendment affect a rental car accident case in NY?