What you need to know about the ‘totally unsecure’ car rental network
A recent federal court decision in Georgia, one of the states with the highest number of auto rental companies, may have set a precedent for others to follow.
The Georgia Supreme Court ruled that auto rental websites like CarRentals.com, which allow customers to pay a monthly fee for the privilege of renting a car from a car rental company, are not “secure,” even though the sites’ owners claim they are.
The decision could affect other states where rental car companies operate.
This week, a federal appeals court in Alabama also upheld the state’s ban on car rental sites, which would affect other parts of the country.
But Georgia’s case is unique in that it is the only state in which the state has sought to prohibit the use of car rental companies as “secure” platforms for customers to rent vehicles.
In addition to the Georgia ruling, several other states have adopted laws similar to Georgia’s.
“There is no reason to believe that these jurisdictions will have a less restrictive approach,” wrote Judge Stephen Reeder in a majority opinion.
Georgia has also seen a rise in the number of companies that rent cars through websites like carrentals.org, a service that lets people rent cars from multiple companies and can offer multiple payment options.
The state has about 6,300 auto rental sites and 1,300 car rental cars, according to a recent report by the Georgia Transportation Institute.
Under Georgia law, cars must be driven on the property for at least 30 minutes.
It does not require the rental company to pay for the rental.
A study by the Institute found that more than 2,500 Georgia companies offer car rental services, with at least 3,600 renting cars annually.