When an accident happens, the person responsible should pay. But in today’s legal system, that is not always how it works. Rideshare companies are being held liable for crashes they did not cause, simply because a driver used an app. The cost of defending these frivolous lawsuits is passed directly to riders and drivers through higher fares and premiums. For Missouri families already stretched thin, this is pushing an essential service further out of reach.

 

Missouri drivers pay nearly $2,400 annually for full-coverage auto insurance, four percent above the national average. Since 2020, premiums have jumped more than 50 percent across the country. That kind of increase does not happen by accident. Excessive litigation and inflated insurance claims are the primary drivers. When lawsuit abuse runs rampant, insurers raise rates to offset legal costs and fraudulent payouts. The burden falls on every driver, not just those involved in accidents.

 

In Missouri, the impact is tangible. Families shoulder more than $1,200 each year in hidden costs tied to excessive litigation. That money could go toward groceries, healthcare or housing. Instead, it goes to frivolous legal fees and inflated settlements. The statewide economic toll is staggering — $7.6 billion in lost economic activity annually. This is not just an insurance problem but also an affordability crisis with a clear culprit. 

 

The legal doctrine driving this damage is vicarious liability, and under this framework, rideshare platforms can be held responsible for accidents even when they bear no fault. A bad actor targets a rideshare company because it carries a required one-million-dollar liability insurance policy. Lawyers go after the deep pocket, regardless of who actually caused the crash. And under current law, the rideshare platform still faces massive liability and legal costs. Those costs can get baked into rider fares and driver earnings.

 

Congress already solved this problem once. In 2005, lawmakers passed the Graves Amendment, introduced by Missouri Rep. Sam Graves (R-6), who is currently the chairman of the House Transportation and Infrastructure Committee. That law established a straightforward principle: rental and leasing companies should only be held responsible for accidents caused by their own negligence, not merely for owning a vehicle. The reform brought stability to the rental car industry without closing the courthouse door to legitimate victims.

 

The rideshare economy did not exist in 2005. Today, millions of Americans depend on these platforms for work and mobility. Yet rideshare companies remain trapped in a legal gray area, vulnerable to the same lawsuit abuse that plagued the rental car industry before the Graves Amendment. The solution is to extend the same protection to transportation network companies (TNCs). TNCs would only face liability for their own actions, not for accidents caused by other drivers. Legitimate claims would still proceed, but frivolous ones would not.

 

Congress will take up surface transportation reauthorization this spring. The House Transportation and Infrastructure Committee is set to mark up the federal highway bill. Lawmakers have a direct opportunity to modernize federal law and close this loophole.

 

The evidence is already available. Florida passed similar reforms in 2023 and saw auto insurance rates drop as much as 15 percent. Families saved an average of $400 annually. Rideshare services became more affordable. Missouri can reap similar benefits

 

Missourians deserve a legal system grounded in fairness, not targets on the backs of transportation companies. Congress should extend the Graves Amendment this spring and give families real relief.