# Transportation (GTR)

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

### Subtitle 1

#### 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.

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