Bill Text: IL HB3279 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Illinois Vehicle Code. Increases the maximum liability of a renter of a vehicle for damages resulting from loss due to theft of the vehicle from $2,000 to the actual and reasonable costs incurred up to the fair market value of the vehicle immediately before the loss occurred, as calculated by a commonly and commercially accepted method to establish a fair market value. Provides that a renter who loses or otherwise fails to secure the keys of a rented motor vehicle shall be liable for any damage to the vehicle as a result of the failure or, if the vehicle is not returned to the person, its fair market value immediately before the loss occurred.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB3279 Detail]

Download: Illinois-2017-HB3279-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3279

Introduced , by Rep. Arthur Turner

SYNOPSIS AS INTRODUCED:
625 ILCS 5/6-305.2

Amends the Illinois Vehicle Code. Increases the maximum liability of a renter of a vehicle for damages resulting from loss due to theft of the vehicle from $2,000 to the actual and reasonable costs incurred up to the fair market value of the vehicle immediately before the loss occurred, as calculated by a commonly and commercially accepted method to establish a fair market value. Provides that a renter who loses or otherwise fails to secure the keys of a rented motor vehicle shall be liable for any damage to the vehicle as a result of the failure or, if the vehicle is not returned to the person, its fair market value immediately before the loss occurred.
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A BILL FOR

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1 AN ACT concerning transportation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Vehicle Code is amended by changing
5Section 6-305.2 as follows:
6 (625 ILCS 5/6-305.2)
7 Sec. 6-305.2. Limited liability for damage.
8 (a) Damage to private passenger vehicle. A person who rents
9a motor vehicle to another may hold the renter liable to the
10extent permitted under subsections (b) through (d) for physical
11or mechanical damage to the rented motor vehicle that occurs
12during the time the motor vehicle is under the rental
13agreement.
14 (b) Limits on liability: vehicle MSRP $50,000 or less. The
15total liability of a renter under subsection (a) for damage to
16a motor vehicle with a Manufacturer's Suggested Retail Price
17(MSRP) of $50,000 or less may not exceed all of the following:
18 (1) The lesser of:
19 (A) Actual and reasonable costs that the person who
20 rents a motor vehicle to another incurred to repair the
21 motor vehicle or that the rental company would have
22 incurred if the motor vehicle had been repaired, which
23 shall reflect any discounts, price reductions, or

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1 adjustments available to the rental company; or
2 (B) The fair market value of that motor vehicle
3 immediately before the damage occurred, as determined
4 in the customary market for the retail sale of that
5 motor vehicle; and
6 (2) Actual and reasonable costs incurred by the loss
7 due to theft of the rental motor vehicle up to its fair
8 market value immediately before the loss occurred, as
9 calculated by a commonly and commercially accepted method
10 to establish a fair market value $2,000; provided, however,
11 that if it is established that the renter or an authorized
12 driver failed to exercise ordinary care while in possession
13 of the vehicle or that the renter or an authorized driver
14 committed or aided and abetted the commission of the theft,
15 then the damages shall be the actual and reasonable costs
16 of the rental vehicle up to its fair market value, as
17 determined by the customary market for the sale of that
18 vehicle.
19 For purposes of this subsection (b), for the period prior
20to June 1, 1998, the maximum amount that may be recovered from
21an authorized driver shall not exceed $6,000; for the period
22beginning June 1, 1998 through May 31, 1999, the maximum
23recovery shall not exceed $7,500; and for the period beginning
24June 1, 1999 through May 31, 2000, the maximum recovery shall
25not exceed $9,000. Beginning June 1, 2000, and annually each
26June 1 thereafter, the maximum amount that may be recovered

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1from an authorized driver shall be increased by $500 above the
2maximum recovery allowed immediately prior to June 1 of that
3year.
4 (b-5) Limits on liability: vehicle MSRP more than $50,000.
5The total liability of a renter under subsection (a) for damage
6to a motor vehicle with a Manufacturer's Suggested Retail Price
7(MSRP) of more than $50,000 may not exceed all of the
8following:
9 (1) the lesser of:
10 (A) actual and reasonable costs that the person who
11 rents a motor vehicle to another incurred to repair the
12 motor vehicle or that the rental company would have
13 incurred if the motor vehicle had been repaired, which
14 shall reflect any discounts, price reductions, or
15 adjustments available to the rental company; or
16 (B) the fair market value of that motor vehicle
17 immediately before the damage occurred, as determined
18 in the customary market for the retail sale of that
19 motor vehicle; and
20 (2) the actual and reasonable costs incurred by the
21 loss due to theft of the rental motor vehicle up to
22 $40,000.
23 The maximum recovery for a motor vehicle with a
24Manufacturer's Suggested Retail Price (MSRP) of more than
25$50,000 under this subsection (b-5) shall not exceed $40,000 on
26the effective date of this amendatory Act of the 99th General

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1Assembly. On October 1, 2016, and for the next 3 years
2thereafter, the maximum amount that may be recovered from an
3authorized driver under this subsection (b-5) shall be
4increased by $2,500 above the prior year's maximum recovery. On
5October 1, 2020, and for each year thereafter, the maximum
6amount that may be recovered from an authorized driver under
7this subsection (b-5) shall be increased by $1,000 above the
8prior year's maximum recovery.
9 (c) Multiple recoveries prohibited. Any person who rents a
10motor vehicle to another may not hold the renter liable for any
11amounts that the rental company recovers from any other party.
12 (d) Repair estimates. A person who rents a motor vehicle to
13another may not collect or attempt to collect the amount
14described in subsection (b) or (b-5) unless the rental company
15obtains an estimate from a repair company or an appraiser in
16the business of providing such appraisals on the costs of
17repairing the motor vehicle, makes a copy of the estimate
18available upon request to the renter who may be liable under
19subsection (a), or the insurer of the renter, and submits a
20copy of the estimate with any claim to collect the amount
21described in subsection (b) or (b-5). In order to collect the
22amount described in subsection (b-5), a person renting a motor
23vehicle to another must also provide the renter's personal
24insurance company with reasonable notice and an opportunity to
25inspect damages.
26 (d-5) In the event of loss due to theft of the rental motor

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1vehicle with a MSRP more than $50,000, the rental company shall
2provide reasonable notice of the theft to the renter's personal
3insurance company.
4 (d-7) A renter who loses or otherwise fails to secure the
5keys of a rented motor vehicle shall be liable for any damage
6to the vehicle as a result of the failure or, if the vehicle is
7not returned to the person, its fair market value immediately
8before the loss occurred, as calculated by a commonly and
9commercially accepted method to establish a fair market value.
10This subsection (d-7) shall not apply to a renter who loses or
11otherwise fails to secure the keys of a rental vehicle due to a
12criminal offense committed against the renter.
13 (e) Duty to mitigate. A claim against a renter resulting
14from damage or loss to a rental vehicle must be reasonably and
15rationally related to the actual loss incurred. A rental
16company shall mitigate damages where possible and shall not
17assert or collect any claim for physical damage which exceeds
18the actual costs of the repair, including all discounts or
19price reductions.
20 (f) No rental company shall require a deposit or an advance
21charge against the credit card of a renter, in any form, for
22damages to a vehicle which is in the renter's possession,
23custody, or control. No rental company shall require any
24payment for damage to the rental vehicle, upon the renter's
25return of the vehicle in a damaged condition, until after the
26cost of the damage to the vehicle and liability therefor is

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1agreed to between the rental company and renter or is
2determined pursuant to law.
3 (g) If insurance coverage exists under the renter's
4personal insurance policy and the coverage is confirmed during
5regular business hours, the renter may require that the rental
6company must submit any claims to the renter's personal
7insurance carrier as the renter's agent. The rental company
8shall not make any written or oral representations that it will
9not present claims or negotiate with the renter's insurance
10carrier. For purposes of this Section, confirmation of coverage
11includes telephone confirmation from insurance company
12representatives during regular business hours. After
13confirmation of coverage, the amount of claim shall be resolved
14between the insurance carrier and the rental company.
15(Source: P.A. 99-201, eff. 10-1-15.)
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