Connecticut Statutes on Car Rentals

• Rental cars are popular for tourists who fly into one location but wish to see the wider surrounding area. Jordan Siemens/Lifesize/Getty Images

  Rental cars are an important means of transportation for travelers who fly into one destination but may need to travel beyond the immediate vicinity of their airport. Additionally, rental cars are often used when an individual's usual vehicle is being repaired or is otherwise unavailable. Given the numerous regulations and laws that govern the relationship between drivers and their personally-owned vehicles, it should be no surprise that there are similarly many laws and regulations that govern the relationship between car renters, car rental businesses, local and state governments and the population in general. In Connecticut, specifically, there are several important laws renters and car rental companies should be aware of.

Registration and Licensing of the Vehicle

• In Connecticut, any icorporation or other organization that rents or leases vehicles to individuals without also providing a driver for that vehicle must obtain a license to do so. The requirements to obtain this license include an Application and License for Motor Vehicle Leasing Companies; a Leasing/Renting License Compliance Certification; a Business License Personnel List; proof of financial responsibility, which includes the ability to demonstrate that the business is covered by sufficient insurance; a certificate of good standing; $10,000 surety bond; and a $300 check made out to the Connecticut Department of Motor Vehicles. Additionally, the business must be registered with the Connecticut Secretary of State.

Insurance

• Most car rental companies attempt to sell insurance to their renters. The insurance policy is for the duration of the rental or lease period and typically covers expenses if the driver gets into an accident while in possession of the vehicle. Under Connecticut law, a car rental company must be registered with the state as an organization permitted to sell insurance or must have a direct appointment in writing by an insurance company that is so registered.

Liability

• If a car accident occurs while a renter is driving the rental vehicle, the issue of the liability of the car rental company will almost certainly arise. Personal injury attorneys are constantly trying to find "deep pockets" capable of paying a large settlement in the event of a lawsuit, and a car rental company likely has deeper pockets than the renter who was actually driving. Vicarious liability refers to the principal that a person or entity not directly involved in the incident giving rise to liability, may none the less be held vicariously liable due to some aspect of their relationship with the responsible party. In Connecticut, car rental companies are considered vicariously liable for any property damage or personal injuries resulting from the operation of vehicles they have rented or leased.