In 2005 a federal law was passed which contained a provision commonly called the Graves Amendment. This amendment protects car rental companies from being held liable for damages and injuries caused by people who rent and drive their vehicles. For those involved in accidents caused by uninsured rental car drivers this has meant that compensation, if awarded, can never actually be collected.
Rental car companies have been using the Graves Amendment to protect themselves in court, but this may have come to an end. There is an exception in the amendment that holds the companies liable in states which have laws requiring drivers to carry liability insurance. In a recent lawsuit a Florida court ruled against Enterprise based on this exception. More cases like this are being brought in other states.
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