Bill Text: IL HB3281 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Illinois Vehicle Code. Provides that a person renting a motor vehicle to another may immediately collect an insurance deductible from a renter for any visible damage to a rented vehicle that exceeds $500 without the renter's personal insurance company first assessing the damage to the vehicle or processing the insurance claim.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB3281 Detail]
Download: Illinois-2017-HB3281-Introduced.html
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1 | AN ACT concerning transportation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Vehicle Code is amended by changing | |||||||||||||||||||
5 | Section 6-305.2 as follows:
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6 | (625 ILCS 5/6-305.2)
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7 | Sec. 6-305.2. Limited liability for damage.
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8 | (a) Damage to private
passenger vehicle. A person who rents | |||||||||||||||||||
9 | a motor vehicle to another may hold
the renter liable to the | |||||||||||||||||||
10 | extent permitted under subsections (b) through (d) for
physical | |||||||||||||||||||
11 | or mechanical damage to the rented motor vehicle that occurs | |||||||||||||||||||
12 | during
the time the motor vehicle is under the rental | |||||||||||||||||||
13 | agreement.
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14 | (b) Limits on liability: vehicle MSRP $50,000 or less. The | |||||||||||||||||||
15 | total liability of a renter under subsection
(a) for damage to | |||||||||||||||||||
16 | a motor vehicle with a Manufacturer's Suggested Retail Price | |||||||||||||||||||
17 | (MSRP) of $50,000 or less may not exceed all of the following:
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18 | (1) The lesser of:
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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
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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
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6 | (2) Actual and reasonable costs incurred by the loss | ||||||
7 | due to theft of the
rental motor vehicle up to $2,000; | ||||||
8 | provided, however, that if it is
established that the | ||||||
9 | renter or an authorized driver failed to exercise ordinary
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10 | care while in possession of the vehicle or that the renter | ||||||
11 | or an authorized
driver committed or aided and abetted the | ||||||
12 | commission of the theft, then the
damages shall be the | ||||||
13 | actual and reasonable costs of the rental vehicle up to
its | ||||||
14 | fair market value, as determined by the customary market | ||||||
15 | for the sale of
that vehicle.
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16 | For purposes of this subsection (b), for the period prior | ||||||
17 | to June 1, 1998,
the
maximum amount that may be recovered from | ||||||
18 | an authorized driver shall not exceed
$6,000; for the period | ||||||
19 | beginning June 1, 1998 through May 31, 1999, the maximum
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20 | recovery shall not exceed $7,500; and for the period beginning | ||||||
21 | June 1, 1999
through May 31, 2000, the maximum recovery shall | ||||||
22 | not exceed $9,000. Beginning
June
1, 2000,
and annually each | ||||||
23 | June 1 thereafter, the maximum amount that may be recovered
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24 | from an authorized driver shall be increased by $500 above the | ||||||
25 | maximum recovery
allowed immediately prior to June 1 of that | ||||||
26 | year.
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1 | (b-5) Limits on liability: vehicle MSRP more than $50,000. | ||||||
2 | The total liability of a renter under subsection (a) for damage | ||||||
3 | to a motor vehicle with a Manufacturer's Suggested Retail Price | ||||||
4 | (MSRP) of more than $50,000 may not exceed all of the | ||||||
5 | following: | ||||||
6 | (1) the lesser of: | ||||||
7 | (A) actual and reasonable costs that the person who | ||||||
8 | rents a motor vehicle to another incurred to repair the | ||||||
9 | motor vehicle or that the rental company would have | ||||||
10 | incurred if the motor vehicle had been repaired, which | ||||||
11 | shall reflect any discounts, price reductions, or | ||||||
12 | adjustments available to the rental company; or | ||||||
13 | (B) the fair market value of that motor vehicle | ||||||
14 | immediately before the damage occurred, as determined | ||||||
15 | in the customary market for the retail sale of that | ||||||
16 | motor vehicle; and | ||||||
17 | (2) the actual and reasonable costs incurred by the | ||||||
18 | loss due to theft of the rental motor vehicle up to | ||||||
19 | $40,000. | ||||||
20 | The maximum recovery for a motor vehicle with a | ||||||
21 | Manufacturer's Suggested Retail Price (MSRP) of more than | ||||||
22 | $50,000 under this subsection (b-5) shall not exceed $40,000 on | ||||||
23 | the effective date of this amendatory Act of the 99th General | ||||||
24 | Assembly. On October 1, 2016, and for the next 3 years | ||||||
25 | thereafter, the maximum amount that may be recovered from an | ||||||
26 | authorized driver under this subsection (b-5) shall be |
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1 | increased by $2,500 above the prior year's maximum recovery. On | ||||||
2 | October 1, 2020, and for each year thereafter, the maximum | ||||||
3 | amount that may be recovered from an authorized driver under | ||||||
4 | this subsection (b-5) shall be increased by $1,000 above the | ||||||
5 | prior year's maximum recovery. | ||||||
6 | (c) Multiple recoveries prohibited. Any person who rents a | ||||||
7 | motor
vehicle to another may not hold the renter liable for any | ||||||
8 | amounts that the
rental company recovers from any other party.
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9 | (d) Repair estimates. A person who rents a motor vehicle to | ||||||
10 | another may
not collect or attempt to collect the amount | ||||||
11 | described in subsection (b) or (b-5) unless
the rental company | ||||||
12 | obtains an estimate from a repair company or an appraiser in
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13 | the business of providing such appraisals on the costs of | ||||||
14 | repairing the motor
vehicle, makes a copy of the estimate | ||||||
15 | available upon request to the renter who
may be liable under | ||||||
16 | subsection (a), or the insurer of the renter, and submits a
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17 | copy of the estimate with any claim to collect the amount | ||||||
18 | described in
subsection (b) or (b-5). In order to collect the | ||||||
19 | amount described in subsection (b-5), a person renting a motor | ||||||
20 | vehicle to another must also provide the renter's personal | ||||||
21 | insurance company with reasonable notice and an opportunity to | ||||||
22 | inspect damages. A person renting a motor vehicle to another | ||||||
23 | may immediately collect an insurance deductible from a renter | ||||||
24 | for any visible damage to a rented vehicle that exceeds $500 | ||||||
25 | without the renter's personal insurance company first | ||||||
26 | assessing the damage to the vehicle or processing the insurance |
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1 | claim.
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2 | (d-5) In the event of loss due to theft of the rental motor | ||||||
3 | vehicle with a MSRP more than $50,000, the rental company shall | ||||||
4 | provide reasonable notice of the theft to the renter's personal | ||||||
5 | insurance company. | ||||||
6 | (e) Duty to mitigate. A claim against a renter resulting | ||||||
7 | from damage or
loss to a rental vehicle must be reasonably and | ||||||
8 | rationally related to the
actual loss incurred. A rental | ||||||
9 | company shall mitigate damages where possible
and shall not | ||||||
10 | assert or collect any claim for physical damage which exceeds | ||||||
11 | the
actual costs of the repair, including all discounts or | ||||||
12 | price reductions.
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13 | (f) No rental company shall require a deposit or an advance | ||||||
14 | charge
against
the credit card of a renter, in any form, for | ||||||
15 | damages to a vehicle which is in
the renter's possession, | ||||||
16 | custody, or control. No rental company shall require
any | ||||||
17 | payment for damage to the rental vehicle, upon the renter's | ||||||
18 | return of the
vehicle in a
damaged condition, until after the | ||||||
19 | cost of the damage to the vehicle and
liability therefor is | ||||||
20 | agreed to between the rental company and renter or is
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21 | determined pursuant to law.
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22 | (g) If insurance coverage exists under the renter's | ||||||
23 | personal insurance
policy and the coverage is confirmed during | ||||||
24 | regular business hours, the renter
may require that the rental
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25 | company must submit any claims to the renter's personal | ||||||
26 | insurance carrier as
the renter's agent. The rental company |
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1 | shall not make any written or oral
representations that it will | ||||||
2 | not present claims or negotiate with the renter's
insurance | ||||||
3 | carrier. For purposes of this Section, confirmation of coverage
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4 | includes telephone confirmation from insurance company | ||||||
5 | representatives during
regular business hours. After
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6 | confirmation of coverage, the amount of claim shall be resolved | ||||||
7 | between the
insurance carrier and the rental company.
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8 | (Source: P.A. 99-201, eff. 10-1-15 .)
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