Yes. Under Vehicle and Traffic Law Section 388, the owner of a vehicle used or operated in New York is liable for death or injuries caused by anyone who was driving it with the owner's permission, express or implied. The two main limits are non-permissive use, such as a stolen car, and rental or leasing companies, which a federal statute called the Graves Amendment shields from this kind of vicarious liability under certain circumstances. This article explains how owner liability works, where it stops, and why it often determines how much insurance money is actually available to an injured person.
At William Mattar, P.C. our team has focused on motor vehicle accidents for more than 30 years, with attorneys and offices and intake locations across the state.
Key facts about New York vehicle owner liability
- Vehicle and Traffic Law Section 388 makes every owner liable for injuries resulting from negligence in the use or operation of the vehicle by any person driving with the owner's permission, express or implied.
- Owner liability under Section 388(3) is joint and several with the driver, so the injured person can pursue both at once.
- The Graves Amendment, 49 U.S.C. 30106, bars vicarious liability claims against companies in the business of renting or leasing vehicles unless the company itself was negligent or engaged in criminal wrongdoing.
- No-fault benefits come from the policy on the vehicle under Insurance Law Section 5103 regardless of who was driving, covering medical bills and lost earnings up to $50,000.
- A pain and suffering lawsuit against the owner and driver still requires a serious injury as defined in Insurance Law Section 5102(d).
What Vehicle and Traffic Law Section 388 says
Section 388 attaches the driver's negligence to the vehicle's owner. The statute states that every owner of a vehicle used or operated in this state shall be liable for death or injuries resulting from negligence in its use or operation by any person using it with the owner's permission, whether the use was in the owner's business or not. The rule exists so that a person injured by a borrowed car is not left chasing a driver who has no insurance and no assets. Liability insurance in New York follows the vehicle. The statute also reaches trailers and vehicle combinations, and it treats the owners of combined vehicles as jointly and severally liable.
Permission can be express or implied
The statute covers permission in both forms. Express permission is the simple case, such as handing a friend the keys for an errand. Implied permission arises from conduct, such as a household member who regularly uses the family car or an employee with routine access to a company vehicle. In practice, insurers defending an owner often argue the driver exceeded the scope of what was allowed, for example by driving farther or later than agreed. Disputes of that kind are fact questions, and the evidence usually consists of the relationship between owner and driver, prior use of the vehicle, and what each person said after the crash. An injured person does not need to resolve this alone. Establishing permissive use is standard work in a New York car accident case. There is a presumption of permissive use that is often difficult to overcome.
When the owner is not liable
Section 388 has real limits. A thief does not have permission, so the owner of a stolen vehicle is not vicariously liable for the thief's driving. The same is true for any genuinely non-permissive use, such as a valet or mechanic who takes a joyride against instructions, although owners must prove the absence of permission rather than merely assert it. There is a presumption of permission that has to be overcome with specific evidence. The statute also excludes certain vehicles, including police and fire vehicles and farm tractors used exclusively for agriculture. When no owner liability exists and the driver carries little or no insurance, the injured person's own uninsured or underinsured motorist coverage can become the primary path to compensation, which is a policy review an attorney performs at the start of every case.
Rental cars and the Graves Amendment
Congress changed the rule for rental and leased vehicles in 2005. Under the Graves Amendment, 49 U.S.C. 30106, a company engaged in the trade or business of renting or leasing motor vehicles cannot be held liable simply because it owns the vehicle, as long as the company itself was not negligent and committed no criminal wrongdoing. That federal statute overrides Section 388 for rental fleets. Claims after a rental car crash therefore focus on the renter and driver, and on any direct negligence by the rental company, such as renting out a vehicle with a known mechanical defect. The Graves Amendment expressly preserves state financial responsibility laws, so minimum coverage connected to the rental still applies.
Employers, employees, and negligent entrustment
Owner liability under Section 388 is not the only route to a defendant beyond the driver. When the driver was working at the time of the crash, the employer can be responsible for the employee's negligence committed within the scope of the job, even if the employer did not own the vehicle. Separately, an owner who lends a car to someone they know to be unfit to drive, such as an unlicensed or intoxicated person, can face a direct claim for negligent entrustment based on the owner's own carelessness rather than the driver's. Each theory points at a different insurance policy, which is why identifying every responsible party early in the case matters.
Common scenarios at a glance
| Who was driving | Can the owner be sued |
| A friend borrowing the car with permission | Yes. Section 388 applies to express permission, and the owner's liability policy responds |
| A household family member | Yes. Permission is commonly implied from regular access and use |
| An employee driving for work | Yes. Section 388 can apply, and the employer is separately responsible for employees acting within the scope of the job |
| A driver entrusted despite known unfitness | Yes. Negligent entrustment is a direct claim against the owner in addition to Section 388 |
Why suing the owner matters to your recovery
The practical reason to name the owner is insurance. The liability policy covering the vehicle is usually the first source of payment, and its limits often exceed anything the driver could pay personally. Naming both owner and driver under Section 388's joint and several liability keeps every available policy in the case. The claim itself still runs on New York's usual rules. No-fault benefits from the vehicle's insurer cover initial medical bills and lost earnings under Insurance Law Section 5103, a pain and suffering recovery requires a serious injury under Section 5102(d), and the lawsuit generally must be filed within three years under CPLR 214. The full range of recoverable compensation is the same whether the defendant is the driver, the owner, or both.
Frequently asked questions
Can I sue the owner of the car if someone else was driving in New York?
Yes. Vehicle and Traffic Law Section 388 makes the owner liable for injuries caused by any person driving the vehicle with the owner's permission, express or implied. You can sue the owner and the driver together, and their liability is joint and several.
What if the car that hit me was stolen?
The owner is generally not liable for a thief's driving because Section 388 requires permissive use. Your claim would proceed against the driver, and your own uninsured motorist coverage may provide a source of recovery if there is no available bodily injury liability insurance. An attorney can also test whether the vehicle was truly taken without permission, since owners must prove that.
Can you sue a rental car company after an accident in New York?
Not just for owning the car. The federal Graves Amendment, 49 U.S.C. 30106, bars vicarious liability claims against rental and leasing companies. You can still sue the driver, and the rental company remains responsible for its own negligence, such as renting out a vehicle it knew was defective.
Whose insurance pays when a friend borrows your car and crashes it in New York?
The liability policy on the borrowed vehicle usually responds first, because coverage in New York follows the car. The driver's own policy may provide additional coverage above those limits. No-fault benefits for the injured people also come from the policy on the vehicle involved.
Does the owner have to be in the car to be liable in New York?
No. Section 388 liability attaches because of ownership plus permission, not presence. An owner who was home asleep when a permissive driver caused a crash is still answerable, which is exactly the situation the statute was written to cover.
Were you hurt by a driver who was behind the wheel of someone else's car in New York? The attorneys at William Mattar, P.C. are available 24/7 with no fee unless you receive a recovery. Call (844) 444-4444. Offices and intake locations across New York State.
About William Mattar, P.C.
William Mattar, P.C. is a New York law firm that only handles motor vehicle accident cases and has represented injured people for over 30 years. The firm’s principal office is in Williamsville, with offices and intake locations across New York State. It represents motorcycle, car, truck, bus, pedestrian, and rideshare accident victims throughout New York State, with free case reviews available 24/7 at (844) 444-4444.
Related reading from William Mattar
- What Happens in a Car Accident Lawsuit
- What Legally Qualifies as Distracted Driving in New York
- Potential Car Accident Damages in New York
- How Motorcycle Accident Claims Work in Buffalo
- The Three-Year Clock: A Guide to New York's Car Accident Statute of Limitations
Each of the above is part of William Mattar’s New York State accident resource library.
Sources
- New York Vehicle and Traffic Law Section 388, Negligence in use or operation of vehicle attributable to owner, via nysenate.gov
- 49 U.S.C. Section 30106, Rented or leased motor vehicle safety and responsibility, via Cornell Law School Legal Information Institute
- New York Insurance Law Sections 5102 and 5103, Article 51 motor vehicle no-fault provisions, via nysenate.gov
- New York Civil Practice Law and Rules Section 214, three year limitation for personal injury actions, via nysenate.gov
- William Mattar, P.C., no-fault and uninsured driver resources, williammattar.com, reviewed July 2026
Attorney Advertising. This article provides general information about New York law and is not legal advice for any specific situation. Prior results do not guarantee a similar outcome. Last updated July 2026.