Imagine being in a car accident. You’re stopped at a red light and another driver rear-ends you. Most people would assume that because you did not cause the accident, you would be on the receiving end of compensation. Unfortunately for rideshare drivers, that is not always the case.
Across the country, rideshare drivers are increasingly being pulled into costly litigation simply because they were operating a vehicle connected to a rideshare platform. Even when another driver causes the crash, lawyers often pursue deep-pocket defendants, targeting companies and drivers tied to apps. The result is a surge in litigation that drives up insurance costs for all drivers and increases fares for everyone who depends on transportation services.
For families already struggling with rising costs, this is yet another pressure point. Missouri residents are facing an affordability crisis, and auto insurance is one of the fastest-rising expenses. According to the Federal Reserve, premiums have increased by more than 50 percent since 2020.
Missourians are feeling that strain firsthand. Drivers in the Show-Me State pay an average of nearly $2,400 a year for full-coverage auto insurance, about four percent higher than the national average.
A growing share of these costs is tied to excessive litigation and fraud. Lawsuit abuse fuels high legal fees, inflated settlements and years of drawn-out court battles. Criminal fraud rings staging auto accidents add even more strain to the system. When insurers face higher legal risks, those costs don’t stay in the courtroom — they spread to every driver through higher premiums. The broader economic toll is significant. American families pay more than $6,600 each year in hidden costs because of excessive litigation.
Fortunately, Missouri has a leader in Congress who understands this problem. In 2005, lawmakers passed the Graves Amendment, legislation introduced by Congressman Sam Graves, who serves as chairman of the House Transportation and Infrastructure Committee. The law established a clear national standard: rental and leasing companies should only be held liable for their own negligence, not simply for owning a vehicle involved in an accident. The policy brought fairness and clarity to the rental car industry while ensuring legitimate accident victims could still pursue justice.
Today, Congress has an opportunity to build on that same commonsense framework. The rise of rideshare platforms has transformed how Americans get to work, travel to the airport and access essential services. But because these platforms weren’t around when the Graves Amendment was written, they remain vulnerable to costly lawsuits based solely on their connection to an app.
In the coming weeks, Congress will begin work on surface transportation reauthorization, the federal highway bill set to expire in later this year. Lawmakers should use that opportunity to extend the Graves Amendment to rideshare platforms. It would close a costly legal loophole that is driving up insurance premiums and transportation costs, while ensuring legitimate victims can pursue justice. After passing similar reforms, Florida families are saving an average of $400 a year.
For Missouri families and drivers, extending the same liability protections to rideshare companies would be a welcome step toward restoring fairness in the legal system and making everyday life more affordable.
