NY Court Sides With AFSA’s Position
The New York Court of Appeals (the highest court in New York) has ruled on a matter in which AFSA offered an amicus brief, agreeing with AFSA’s position on insurance requirements for leased and rental vehicles.
The Graves Amendment is a federal law that shields vehicle leasing and rental companies from vicarious liability for damages caused by their customer’s negligent use of the vehicle. Without such protection, a leasing or rental car company would have enormous exposure to financial liability relating to vehicle accidents.
The state of New York has attempted to impose insurance requirements that would force rental car and leasing companies to maintain liability insurance on their entire fleets. The New York Court of Appeals ruled on April 23, 2026, that the Graves Amendment preempts New York state law on these matters.
This decision supports AFSA members who offer vehicle leasing to customers in New York, and AFSA eagerly supported the litigation by providing an amicus brief. We will continue to monitor this topic as it develops in other states.
April 30th, 2026
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