# Transportation (GTR)

## Title 18. Vehicle Laws -- For-Rent Vehicles

### Subtitle 1

#### Section 18-101

(a) In this title, "rent" means to rent or lease for a period not exceeding 180 days.

(b) This title does not apply to peer-to-peer car sharing of a shared motor vehicle made available on a peer-to-peer car sharing program, as defined under Sec. 19-520 of the Insurance Article, and that is subject to Title 18.5 of this article.

#### Section 18-102

(a)

  (1) The Administration may not register any motor vehicle, trailer, or semitrailer to be rented until the owner of the vehicle certifies to the satisfaction of the Administration that the owner has security for the vehicle in the same form and providing for the same minimum benefits as the security required by Title 17 of this article for motor vehicles.

  (2)

    (i) In this paragraph, "replacement vehicle" means a vehicle that is loaned by an auto repair facility or a dealer, or that an individual rents temporarily, to use while a vehicle owned by the individual is not in use because of loss, as "loss" is defined in that individual's applicable private passenger automobile insurance policy, or because of breakdown, repair, service, or damage.

    (ii) This paragraph does not apply to a rental vehicle that is not a replacement vehicle if the coverage maintained by the renter or driver is provided by the Maryland Automobile Insurance Fund.

    (iii) Subject to paragraph (3) of this subsection, Sec. 18-106 of this subtitle, and Sec. 17-104(e)(5) of this article, an owner of a rental vehicle or replacement vehicle may satisfy the requirement of paragraph (1) of this subsection by maintaining the required security described in Sec. 17-103 of this article that is secondary to any other valid and collectible coverage and that extends coverage to the owner's vehicle in amounts required under Sec. 17-103(b) of this article while it is used as a rental vehicle or replacement vehicle.

    (iv) If an owner of a replacement vehicle provides coverage as provided under subparagraph (iii) of this paragraph, the agreement for the replacement vehicle to be signed by the renter or the individual to whom the vehicle is loaned shall contain a provision on the face of the agreement, in at least 10 point bold type, that informs the individual that the coverage on the vehicle being serviced or repaired is primary coverage for the replacement vehicle and the coverage maintained by the owner on the replacement vehicle is secondary.

  (3) If an owner of a rental vehicle provides coverage in accordance with paragraph (2) of this subsection, the rental agreement to be signed by the renter shall contain a provision on the face of the agreement, in at least 10 point bold type, that informs the individual that, except for coverage provided by the Maryland Automobile Insurance Fund with respect to a rental vehicle that is not a replacement vehicle, the coverage maintained by the renter of the rental vehicle is primary coverage on the owner's confirmation with the insurance carrier that provides coverage to the renter that the insurance maintained by the renter provides valid and collectible coverage in the amounts required under Sec. 17-103(b) of this article to the owner's vehicle while it is used as a rental vehicle.

(b) Notwithstanding any provision of the rental agreement to the contrary, the security required under this section shall cover the owner of the vehicle and each person driving or using the vehicle with the permission of the owner or lessee.

(c) If the Administration finds that the vehicle owner has failed or is unable to maintain the required security, the Administration shall suspend the registration of the vehicle.

#### Section 18-103

(a) A person may not rent a motor vehicle, trailer, or semitrailer to any other person unless the individual who will operate the rented vehicle:

  (1)

    (i) Holds a driver's license issued under Title 16 of this article, which license authorizes the individual to drive or tow, as the case may be, vehicles of the class rented; or

    (ii) Possesses an electronic credential issued under Title 16, Subtitle 10 of this article showing a representation of a valid driver's license;

  (2) Is a nonresident who:

    (i)

      (1) Has with the individual a license to drive issued to the individual by the state or country of the individual's residence, which license authorizes the individual in that state or country to drive or tow, as the case may be, vehicles of the class rented; or

      (2) Possesses an electronic credential issued by the individual's state of residence showing a representation of a valid driver's license, if the individual's state of residence has entered into a facilitation agreement with the Administration under Sec. 16-1002(b) of this article; and

    (ii) Is at least the same age as that required of a resident to drive or tow, as the case may be, the vehicle rented; or

  (3) Otherwise is specifically authorized by Title 16 of this article to drive or tow, as the case may be, vehicles of the class rented.

(b)

  (1) A person may not rent a motor vehicle, trailer, or semitrailer to any other person unless the lessor or his agent:

    (i) Has inspected the license to drive or electronic credential of the individual who will operate the rented vehicle;

    (ii) Has compared and verified:

      (1) The signature on the license or electronic credential with the signature of the individual, as written in the presence of the lessor or agent; and

      (2) The physical description on the license or electronic credential with the physical appearance of the individual; and

    (iii) Has verified that the license is not expired.

  (2) An inspection of a license or an electronic credential under this section may be through electronic or digital means.

(c)

  (1) Each person who rents a motor vehicle, trailer, or semitrailer to another person shall keep a record of:

    (i) The registration number of the rented vehicle and, if only a semitrailer or trailer is rented, the registration number of the motor vehicle to be used to tow the trailer or semitrailer;

    (ii) The name and address of the lessee;

    (iii) The number of the license to drive of the individual who will drive or tow, as the case may be, the rented vehicle; and

    (iv) The date and place of issuance of the license to drive.

  (2) Records may be kept under this subsection in an electronic or digital format.

(d) Any police officer or authorized representative of the Administration may inspect the records kept under subsection (c) of this section.

(e)

  (1) If a lessor rents a motor vehicle, trailer, or semitrailer to another person in a manner that allows the other person to obtain possession of the rented vehicle without making direct contact with the lessor, the lessor shall be deemed to have met the requirements of subsections (a) and (b) of this section if the lessor requires the person who will operate the rented vehicle to enter into a membership or master program agreement.

  (2) A lessor shall delete any personal data of an individual who participates in a membership or master program agreement within 60 days after the individual terminates the individual's participation in the membership or master program agreement.

#### Section 18-104

(a) A person may not, with intent to defraud, rent to any other person any motor vehicle for which any charge is based on the distance traveled, if the person knows that the vehicle's odometer does not record correctly its actual accumulated mileage.

(b) A person may not otherwise rent to any other person any motor vehicle for which any charge is based on the distance traveled and deceive that other person as to the distance that the vehicle traveled during the rental period.

(c) A person convicted of a violation of this section is subject to imprisonment not exceeding 6 months or a fine not exceeding $500 or both.

#### Section 18-105

(a) A person may not rent a motor vehicle to any other person if he knows that the other person is under the influence of alcohol, impaired by alcohol, impaired by a drug, a combination of drugs, or a combination of one or more drugs and alcohol, or impaired by a controlled dangerous substance.

(b) A person may not rent a motor vehicle to any other person if the person knows that an individual who will drive the rented vehicle is under the influence of alcohol, impaired by alcohol, impaired by a drug, a combination of drugs, or a combination of one or more drugs and alcohol, or impaired by a controlled dangerous substance.

#### Section 18-106

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Authorized driver" means a person, other than the renter, who uses or operates a rental vehicle with the permission of the motor vehicle rental company.

  (3) "Motor vehicle rental company" has the meaning stated in Sec. 17-104.3 of this article.

  (4) "Rental agreement" has the meaning stated in Sec. 17-104.3 of this article.

(b)

  (1) Except as provided in paragraph (2) of this subsection, this section applies only to:

    (i) Rental vehicle transactions originating in the State; and

    (ii) Third-party claims against a renter or an authorized driver of a rental vehicle arising out of the security requirement under Sec. 18-102(a)(2) of this subtitle or Sec. 17-104(e) of this article.

  (2) This section does not apply to a replacement vehicle under Sec. 18-102(a)(2) of this subtitle or Sec. 17-104(e) of this article.

(c) A motor vehicle rental company shall be responsible for providing the required security under Sec. 17-103 of this article on a primary basis for a third-party liability claim if the motor vehicle rental company:

  (1) Fails to deliver notice of the claim;

  (2) Fails to cooperate with the insurer;

  (3) Prejudiced the handling of the third-party claim before the insurer assumed the handling of the claim;

  (4) Has provided liability, property damage, uninsured motorist, or other coverage to the insured that is applicable to the third-party claim as a benefit under either:

    (i) The rental agreement; or

    (ii) An insurance policy sold to the renter in connection with, and incidental to, the rental of the motor vehicle; or

  (5) Fails to provide the notices required under Sec. 18-102(a)(3) of this subtitle or Sec. 17-104(f) of this article.

(d) A motor vehicle rental company shall be responsible for providing the required security under Sec. 17-103 of this article on a primary basis for a third-party liability claim if the driver of the rental vehicle is an individual who is not the renter or an authorized driver.

#### Section 18-107

(a) A person who rents a motor vehicle to a consumer shall:

  (1) Compute the daily rental rate based on a 24-hour period, starting at the time the rental begins;

  (2) Make a notation on the rental agreement of the time the rental begins; and

  (3) Inform the consumer that:

    (i) The daily rental fee is based on a 24-hour period; and

    (ii) The time the rental begins is noted on the rental agreement.

(b) This section does not apply if:

  (1) A person rents a motor vehicle to a consumer; and

  (2) The rental vehicle is:

    (i) A temporary substitute for a vehicle that is out of service because of breakdown, repair, servicing, loss, or destruction; and

    (ii) Covered as a temporary substitute vehicle under the consumer's comprehensive and collision coverage.

(c)

  (1) Regardless of whether a consumer complies with a requirement by a rental company to notify the rental company in advance of intent to return the vehicle, the rental company may not charge for the use of a rental vehicle after the vehicle has been returned.

  (2) If a rental agreement requires the consumer to notify the rental company in advance of intent to return the vehicle, the rental company shall make the following written disclosure to the consumer in at least 10 point type:

  "Regardless of whether you comply with a requirement by the rental company to notify the rental company in advance of your intent to return the vehicle, the rental company may not charge for the use of the rental vehicle after you have returned the vehicle."

(d) In addition to any remedies otherwise available at law, a violation of this section shall be an unfair or deceptive trade practice under Title 13, Subtitle 3 of the Commercial Law Article.

#### Section 18-108

(a)

  (1) In this section, "rental vehicle company" means a person that rents a motor vehicle to a consumer.

  (2) "Rental vehicle company" does not include a peer-to-peer car sharing program, as defined under Sec. 19-520 of the Insurance Article, and that is subject to Title 18.5 of this article.

(b) A rental vehicle company may charge a consumer a separately stated fee to recover the following costs incurred by the rental vehicle company:

  (1) Any portion of the rental vehicle company's titling and registration costs incurred under Title 13 of this article for its fleet of rental vehicles;

  (2) Any concession fees paid to a government owned or operated:

    (i) Airport; or

    (ii) Other entity;

  (3) Any consolidated facility fees imposed by a government owned or operated entity to pay for the use of the facility by the rental vehicle company or otherwise related to the use of the facility; or

  (4) Any other fee or charge imposed by a governmental entity.

(c)

  (1) A rental vehicle company may determine the amount of a separately stated fee it will charge to recover costs described under subsection (b)(1) of this section, provided that the rental vehicle company does not intend to recover an amount in excess of the costs it actually incurs.

  (2) If the total amount of the fees collected by a rental vehicle company under this section during a 12-month period exceeds the rental vehicle company's actual costs incurred during the same 12-month period, the rental vehicle company shall:

    (i) Retain the excess amount; and

    (ii) Adjust the estimated average charge for the following 12-month period by a corresponding amount.

(d) If a rental vehicle company advertises the rental rate for a vehicle available for rent in the State, the fees authorized under this section shall be clearly disclosed in the advertisement.

(e)

  (1) The separately stated fee authorized for recovery of costs described under subsection (b)(1) of this section shall be described in the rental agreement as:

  "The estimated average per day per vehicle portion of the rental company's total annual titling and registration costs".

  (2) A rental vehicle company shall post the statement required under paragraph (1) of this subsection on the rental vehicle company's website, if any, for consumers participating in an extended rental program under a master rental agreement.

#### Section 18-109

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Rental vehicle company" has the meaning stated in Sec. 18-108 of this title.

  (3) "Replacement vehicle" has the meaning stated in Sec. 18-102 of this title.

(b) If a vehicle owned by an individual who is at least 18 years old is not in use because of a repair of the vehicle covered by a warranty, a recall of the vehicle, or a repair of the vehicle as a result of the recall:

  (1) A rental vehicle company may not, solely on the basis of the age of the individual:

    (i) Refuse to rent a vehicle to the individual; or

    (ii) Charge the individual a higher rental fee than normally charged; and

  (2) An auto repair facility or a vehicle dealer may not, solely on the basis of the age of the individual:

    (i) Refuse to loan a replacement vehicle to the individual; or

    (ii) Charge the individual a higher fee for a replacement vehicle than normally charged.

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Md. Code Ann., Transp. (as displayed at mgaleg.maryland.gov, October 16, 2026)