Graves Amendment Rental Car Accident: Liability & Legal Options
If you’ve been in a Graves Amendment rental car accident, you may be unsure who’s responsible. This guide explains your legal rights and options if you’re injured in a crash involving a rental vehicle in Colorado. Understanding how the Graves Amendment affects liability is essential when rental companies try to avoid paying compensation.
What Is Rental Car Liability?
Rental car liability refers to the legal responsibility for bodily injury or property damage caused while driving a rented vehicle. Just like private vehicle ownership, operating a rental car carries the risk of legal and financial consequences if an accident occurs.
Key Facts:
- Primary liability typically lies with the renter or driver.
- Renters need adequate insurance—either personal, through a credit card, or from the rental agency.
- State laws require minimum liability coverage, but it may not be enough.
- The Graves Amendment limits the rental company’s liability in many cases.
Who Is Liable in a Graves Amendment Rental Car Accident?
1. The Renter or Driver
The person who rents and operates the vehicle is usually responsible for damages. In a Graves Amendment rental car accident, liability generally falls on the driver unless specific exceptions apply.
2. The Rental Car Company
Rental companies were once commonly sued under vicarious liability—a legal principle that allowed accident victims to sue the vehicle owner. That changed in 2005 with the Graves Amendment, a federal law that shields rental companies from liability unless they are directly negligent.
What Is the Graves Amendment?
The Graves Amendment (49 U.S. Code § 30106) is a federal law that blocks state laws holding vehicle rental companies responsible for accidents caused by renters.
To qualify for protection, the company must:
- Be in the business of renting or leasing vehicles.
- Not be negligent or engage in criminal wrongdoing.
This means that after a Graves Amendment rental car accident, the rental company is typically not liable—unless they failed to maintain the vehicle, rented to an unfit driver, or violated safety regulations.
Graves Amendment Rental Car Accident Liability Explained
What the Law Prevents
Before 2005, rental car companies could be sued just because they owned the vehicle involved in an accident. The Graves Amendment eliminated that form of vicarious liability.
What the Law Allows
Rental companies can still be sued for direct negligence, such as:
- Failing to maintain vehicles properly
- Renting to intoxicated or unlicensed drivers
- Ignoring known safety recalls
In each case, you must prove that the company’s own conduct contributed to the crash. This distinction is crucial in any Graves Amendment rental car accident claim.
Real-World Case Law on Rental Car Liability
Said v. EAN Holdings, LLC – No. 3:24-CV-728-BW (N.D. Tex. Oct. 22, 2024)
The plaintiff, Mody Said, sued Enterprise Rent-A-Car and its administrative service provider after an accident involving a rental car. He did not sue the driver or cite specific wrongdoing by the rental company. The court dismissed the case, holding that the Graves Amendment barred vicarious liability and the plaintiff failed to plead facts showing direct negligence. This case shows that vague claims won’t survive in a Graves Amendment rental car accident lawsuit—concrete evidence is required.
Fuller v. Biggs – 532 F. Supp. 3d 371 (N.D. Tex. 2021)
Charles Fuller and Antonio Davis sued after being hit by a truck leased to Scott Biggs. They brought claims for negligent hiring and negligent entrustment. The court ruled that while the Graves Amendment blocks vicarious liability, it does not preempt direct negligence claims. The plaintiffs could move forward with those. This case proves that rental companies may be held liable in a Graves Amendment rental car accident when they rent to unsafe drivers or fail to screen them properly.
O’Donnell v. Diaz – No. 3:17-CV-1922-S, 2019 WL 1115715 (N.D. Tex. Mar. 11, 2019)
The plaintiff sued Avis Budget Group for negligent entrustment. The court recognized that such claims are not barred by the Graves Amendment. However, the plaintiff lacked evidence to show that Avis knew the driver was unfit, so the court granted summary judgment. The lesson: even if a claim is legally valid, it must be backed by solid facts in a Graves Amendment rental car accident case.
What Renters Need to Know About Liability Coverage
✔️ Do This:
- Confirm personal auto insurance includes rental liability coverage.
- Review credit card rental benefits (usually collision only).
- Consider purchasing Supplemental Liability Insurance (SLI).
- Read your rental agreement carefully.
❌ Don’t Assume:
- The rental company will cover your damages automatically.
- Your credit card includes liability protection (most don’t).
- State minimum insurance will be sufficient in serious crashes.
Legal Options After a Graves Amendment Rental Car Accident in Colorado
If you’re injured in a Graves Amendment rental car accident in Colorado, you may be able to pursue a lawsuit based on direct negligence. Viable claims include:
- Negligent Entrustment: Renting to someone unfit to drive
- Negligent Maintenance: Failing to fix mechanical problems
- Negligent Hiring or Training: When the company’s staff fails to follow safety procedures
Tip: Preserve all documents—rental contracts, witness statements, police reports, and maintenance logs—to build your case.
❓ Frequently Asked Questions (FAQ)
What is the Graves Amendment?
The Graves Amendment is a 2005 federal law that shields rental companies from being held vicariously liable for accidents, unless the company was negligent or involved in criminal conduct.
Can I sue a rental company after a Graves Amendment rental car accident?
Yes, if you can prove direct negligence. The law prevents lawsuits based solely on ownership, but it allows cases involving negligent entrustment, maintenance failures, or safety violations.
How do I prove a rental company was negligent?
Gather maintenance records, internal communications, rental logs, and witness testimony. You must show that the company’s actions contributed to the crash.
Does my credit card cover me in a rental car accident?
Most cards cover collision damage but not liability. Check your benefits guide or call your card provider before declining rental insurance.
Should I hire a lawyer for a rental car accident?
Yes. These cases are complex and often dismissed without strong legal arguments and evidence. An experienced personal injury attorney can investigate and build your claim.
📞 Contact Mandelaris Law for Help
If you’ve been injured in a rental car accident in Colorado, contact Mandelaris Law today. Our experienced attorneys know how to hold negligent parties accountable—even when rental companies try to deny responsibility.
📆 Schedule your free consultation today and protect your right to compensation.