Washington–Congress is being asked to preempt state laws that hold auto rental and leasing companies liable for damages caused by motorists who don't have adequate insurance to pay accident damages for which they are responsible.
The issue divides the insurance industry, which is split between personal lines writers who oppose efforts to preempt such laws, and commercial/surplus/excess lines writers, who insure auto and truck leasing and rental companies.
Sixteen states, plus the District of Columbia, currently have vicarious liability statutes in force, which mandate that rental and leasing firms have liability for damages their customers cause. Each state law is different, which the rental car companies say exacerbates the problem.
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