Bill Text: IL SB1785 | 2013-2014 | 98th General Assembly | Introduced

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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. Effective January 1, 2014.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB1785 Detail]

Download: Illinois-2013-SB1785-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB1785 Introduced 2/15/2013, by Sen. Antonio Muñoz 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. Effective January 1, 2014.
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A BILL FOR
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AN ACT concerning transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Vehicle Code is amended by changing
Section 6-305.2 as follows:
(625 ILCS 5/6-305.2)
Sec. 6-305.2. Limited liability for damage.
(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.
(b) Limits on liability. The total liability of a renter
under subsection (a) for damage to a motor vehicle 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

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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
(2) Actual and reasonable costs incurred by the loss
due to theft of the rental motor vehicle up to its fair
market value immediately before the loss occurred, as
calculated by a commonly and commercially accepted method
to establish a fair market value $2,000; provided, however,
that if it is established that the renter or an authorized
driver failed to exercise ordinary 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.
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
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
from an authorized driver shall be increased by $500 above the

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maximum recovery allowed immediately prior to June 1 of that
year.
(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.
(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) unless the rental company obtains
an estimate from a repair company or an appraiser in 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 copy of the
estimate with any claim to collect the amount described in
subsection (b).
(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.
(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

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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
determined pursuant to law.
(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
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
includes telephone confirmation from insurance company
representatives during regular business hours. After
confirmation of coverage, the amount of claim shall be resolved
between the insurance carrier and the rental company.
(Source: P.A. 90-113, eff. 7-14-97.)
Section 99. Effective date. This Act takes effect January
1, 2014.