Legal Question in Personal Injury in Virginia

Liability of rental car company for p.i./w.d. caused by driver

A client driving her own vehicle was killed by the negligent operation of a rental car by its authorized driver in Virginia.

The insurance adjuster for the rental car company advises that the rental car company/owner of the vehicle "is self-insured with statutory limits of liability of 25/50/20".

Q - Does Virginia law (specifically or by operation) limit a rental car company's liability for injuries to 3rd parties caused by the negligence of its drivers?

- Does Virginia impose liability on owners of automobiles generally for the negligent acts of authorized drivers?


Asked on 8/17/99, 1:55 pm

1 Answer from Attorneys

Daniel Press Chung & Press, P.C.

Re: Liability of rental car company for p.i./w.d. caused by driver

There is no "limitation" on liability; there is generally just no theory of common law to hold the rentak car co. liable. The driver is not an agent of the rental car co., so no vicarious liability. You need to show that the rental car co. was negligent under a negligent entrustment theory. I've never heard of this succeeding, but with the ability to check driving records and the fact that many rental car companies do this, if there were serious red flags and there was negligence in not checking or catching it, there might be an issue. Of course, if the condition of the car was a factor, there may be negligent maintenance theories. There is no general imposition of liability on owners. Have you checked what insurance the negligent driver had? How about underinsured coverage of the victim?

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Answered on 8/19/99, 8:21 pm


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