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.
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