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| Public Act 099-0201
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| SB0626 Enrolled | LRB099 03341 RJF 23349 b |
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AN ACT concerning transportation.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Illinois Vehicle Code is amended by changing |
Section 6-305.2 as follows:
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(625 ILCS 5/6-305.2)
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Sec. 6-305.2. Limited liability for damage.
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(a) Damage to private
passenger vehicle. A person who rents |
a motor vehicle to another may hold
the renter liable to the |
extent permitted under subsections (b) through (d) for
physical |
or mechanical damage to the rented motor vehicle that occurs |
during
the time the motor vehicle is under the rental |
agreement.
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(b) Limits on liability: vehicle MSRP $50,000 or less. The |
total liability of a renter under subsection
(a) for damage to |
a motor vehicle with a Manufacturer's Suggested Retail Price |
(MSRP) of $50,000 or less may not exceed all of the following:
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(1) The lesser of:
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(A) Actual and reasonable costs that the person who |
rents a motor
vehicle to another incurred to repair the |
motor vehicle or that the rental
company would have |
incurred if the motor vehicle had been
repaired, which |
shall reflect any discounts, price reductions, or |
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adjustments
available to the rental company; or
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(B) The fair market value of that motor vehicle |
immediately before the
damage occurred, as determined |
in the customary market for the retail sale of
that |
motor vehicle; and
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(2) Actual and reasonable costs incurred by the loss |
due to theft of the
rental motor vehicle up to $2,000; |
provided, however, that if it is
established that the |
renter or an authorized driver failed to exercise ordinary
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care while in possession of the vehicle or that the renter |
or an authorized
driver committed or aided and abetted the |
commission of the theft, then the
damages shall be the |
actual and reasonable costs of the rental vehicle up to
its |
fair market value, as determined by the customary market |
for the sale of
that vehicle.
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For purposes of this subsection (b), for the period prior |
to June 1, 1998,
the
maximum amount that may be recovered from |
an authorized driver shall not exceed
$6,000; for the period |
beginning June 1, 1998 through May 31, 1999, the maximum
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recovery shall not exceed $7,500; and for the period beginning |
June 1, 1999
through May 31, 2000, the maximum recovery shall |
not exceed $9,000. Beginning
June
1, 2000,
and annually each |
June 1 thereafter, the maximum amount that may be recovered
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from an authorized driver shall be increased by $500 above the |
maximum recovery
allowed immediately prior to June 1 of that |
year.
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(b-5) Limits on liability: vehicle MSRP more than $50,000. |
The total liability of a renter under subsection (a) for damage |
to a motor vehicle with a Manufacturer's Suggested Retail Price |
(MSRP) of more than $50,000 may not exceed all of the |
following: |
(1) the lesser of: |
(A) actual and reasonable costs that the person who |
rents a motor vehicle to another incurred to repair the |
motor vehicle or that the rental company would have |
incurred if the motor vehicle had been repaired, which |
shall reflect any discounts, price reductions, or |
adjustments available to the rental company; or |
(B) the fair market value of that motor vehicle |
immediately before the damage occurred, as determined |
in the customary market for the retail sale of that |
motor vehicle; and |
(2) the actual and reasonable costs incurred by the |
loss due to theft of the rental motor vehicle up to |
$40,000. |
The maximum recovery for a motor vehicle with a |
Manufacturer's Suggested Retail Price (MSRP) of more than |
$50,000 under this subsection (b-5) shall not exceed $40,000 on |
the effective date of this amendatory Act of the 99th General |
Assembly. On October 1, 2016, and for the next 3 years |
thereafter, the maximum amount that may be recovered from an |
authorized driver under this subsection (b-5) shall be |
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increased by $2,500 above the prior year's maximum recovery. On |
October 1, 2020, and for each year thereafter, the maximum |
amount that may be recovered from an authorized driver under |
this subsection (b-5) shall be increased by $1,000 above the |
prior year's maximum recovery. |
(c) Multiple recoveries prohibited. Any person who rents a |
motor
vehicle to another may not hold the renter liable for any |
amounts that the
rental company recovers from any other party.
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(d) Repair estimates. A person who rents a motor vehicle to |
another may
not collect or attempt to collect the amount |
described in subsection (b) or (b-5) unless
the rental company |
obtains an estimate from a repair company or an appraiser in
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the business of providing such appraisals on the costs of |
repairing the motor
vehicle, makes a copy of the estimate |
available upon request to the renter who
may be liable under |
subsection (a), or the insurer of the renter, and submits a
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copy of the estimate with any claim to collect the amount |
described in
subsection (b) or (b-5). In order to collect the |
amount described in subsection (b-5), a person renting a motor |
vehicle to another must also provide the renter's personal |
insurance company with reasonable notice and an opportunity to |
inspect damages.
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(d-5) In the event of loss due to theft of the rental motor |
vehicle with a MSRP more than $50,000, the rental company shall |
provide reasonable notice of the theft to the renter's personal |
insurance company. |
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(e) Duty to mitigate. A claim against a renter resulting |
from damage or
loss to a rental vehicle must be reasonably and |
rationally related to the
actual loss incurred. A rental |
company shall mitigate damages where possible
and shall not |
assert or collect any claim for physical damage which exceeds |
the
actual costs of the repair, including all discounts or |
price reductions.
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(f) No rental company shall require a deposit or an advance |
charge
against
the credit card of a renter, in any form, for |
damages to a vehicle which is in
the renter's possession, |
custody, or control. No rental company shall require
any |
payment for damage to the rental vehicle, upon the renter's |
return of the
vehicle in a
damaged condition, until after the |
cost of the damage to the vehicle and
liability therefor is |
agreed to between the rental company and renter or is
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determined pursuant to law.
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(g) If insurance coverage exists under the renter's |
personal insurance
policy and the coverage is confirmed during |
regular business hours, the renter
may require that the rental
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company must submit any claims to the renter's personal |
insurance carrier as
the renter's agent. The rental company |
shall not make any written or oral
representations that it will |
not present claims or negotiate with the renter's
insurance |
carrier. For purposes of this Section, confirmation of coverage
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includes telephone confirmation from insurance company |
representatives during
regular business hours. After
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confirmation of coverage, the amount of claim shall be resolved |
between the
insurance carrier and the rental company.
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(Source: P.A. 90-113, eff. 7-14-97.)
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Section 10. The Renter's Financial Responsibility and |
Protection Act is amended by changing Section 15 as follows:
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(625 ILCS 27/15)
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Sec. 15. Prohibited practices.
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(a) A rental company may not sell a damage waiver unless |
the renter agrees
to the damage waiver in writing at or prior |
to the time the rental agreement
is executed.
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(b) A rental company may not void a damage waiver except |
for one or more of
the following reasons:
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(1) Damage or loss while the rental vehicle is used to |
carry persons or
property for a charge or fee.
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(2) Damage or loss during an organized or agreed upon |
racing or speed
contest or demonstration or pushing or |
pulling activity in which the rental
vehicle is actively |
involved.
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(3) Damage or loss that could reasonably be expected |
from an intentional
or criminal act of the driver other |
than a traffic infraction.
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(4) Damage or loss to any rental vehicle resulting from |
any auto business
operation, including but not limited to |
repairing, servicing, testing, washing,
parking, storing, |
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or selling of automobiles.
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(5) Damage or loss occurring to a rental vehicle if the |
rental contract is
based on fraudulent or material |
misrepresentation by the renter.
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(6) Damage or loss arising out of the use of the rental |
vehicle outside
the continental United States when such use |
is specifically prohibited in the
rental
agreement.
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(7) Damage or loss occurring while the rental vehicle |
is operated by a
driver not permitted under the rental |
agreement. |
(8) Damage or loss occurring while the rental vehicle |
is operated by a driver under the influence of alcohol, |
other drug or drugs, intoxicating compound or compounds, or |
any combination thereof and convicted of violating |
subsection (a) of Section 11-501 of the Illinois Vehicle |
Code.
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(c) A rental company shall not charge more than $12.50 per |
full or partial 24
hour rental day for a collision damage
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waiver prior to January 1, 2014. Beginning January 1, 2014, a |
rental company shall not charge more than $13.50 per full or |
partial 24 hour rental day for a collision damage waiver.
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(d) A rental company may offer a collision damage waiver on |
any rental vehicle having a value in excess of a Manufacturer's |
Suggested Retail Price (MSRP) of $50,000; however, the |
provisions of subsection (c) of this Section shall not apply to |
collision damage waivers under this subsection (d). |
