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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 person may hold
the renter liable to | |||||||||||||||||||
10 | the extent permitted under subsections (b) through (d) for
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11 | physical or mechanical damage to the rented motor vehicle that | |||||||||||||||||||
12 | occurs during
the time the motor vehicle is under the rental | |||||||||||||||||||
13 | agreement.
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14 | (b) Limits on liability. The total liability of a renter | |||||||||||||||||||
15 | under subsection
(a) for damage to a motor vehicle may not | |||||||||||||||||||
16 | exceed all of the following:
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17 | (1) The lesser of:
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18 | (A) Actual and reasonable costs that the person who | |||||||||||||||||||
19 | rents a motor
vehicle to another incurred to repair the | |||||||||||||||||||
20 | motor vehicle or that the rental
company would have | |||||||||||||||||||
21 | incurred if the motor vehicle had been
repaired, which | |||||||||||||||||||
22 | shall reflect any discounts, price reductions, or | |||||||||||||||||||
23 | adjustments
available to the rental company; or
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24 | (B) The fair market value of that motor vehicle | |||||||||||||||||||
25 | immediately before the
damage occurred, as determined | |||||||||||||||||||
26 | in the customary market for the retail sale of
that | |||||||||||||||||||
27 | motor vehicle; and
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28 | (2) Actual and reasonable costs incurred by the loss | |||||||||||||||||||
29 | due to theft of the
rental motor vehicle up to $2,000; | |||||||||||||||||||
30 | provided, however, that if it is
established that the | |||||||||||||||||||
31 | renter or an authorized driver failed to exercise ordinary
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32 | care while in possession of the vehicle or that the renter |
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1 | or an authorized
driver committed or aided and abetted the | ||||||
2 | commission of the theft, then the
damages shall be the | ||||||
3 | actual and reasonable costs of the rental vehicle up to
its | ||||||
4 | fair market value, as determined by the customary market | ||||||
5 | for the sale of
that vehicle.
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6 | For purposes of this subsection (b), for the period prior | ||||||
7 | to June 1, 1998,
the
maximum amount that may be recovered from | ||||||
8 | an authorized driver shall not exceed
$6,000; for the period | ||||||
9 | beginning June 1, 1998 through May 31, 1999, the maximum
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10 | recovery shall not exceed $7,500; and for the period beginning | ||||||
11 | June 1, 1999
through May 31, 2000, the maximum recovery shall | ||||||
12 | not exceed $9,000. Beginning
June
1, 2000,
and annually each | ||||||
13 | June 1 thereafter, the maximum amount that may be recovered
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14 | from an authorized driver shall be increased by $500 above the | ||||||
15 | maximum recovery
allowed immediately prior to June 1 of that | ||||||
16 | year.
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17 | (c) Multiple recoveries prohibited. Any person who rents a | ||||||
18 | motor
vehicle to another may not hold the renter liable for any | ||||||
19 | amounts that the
rental company recovers from any other party.
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20 | (d) Repair estimates. A person who rents a motor vehicle to | ||||||
21 | another may
not collect or attempt to collect the amount | ||||||
22 | described in subsection (b) unless
the rental company obtains | ||||||
23 | an estimate from a repair company or an appraiser in
the | ||||||
24 | business of providing such appraisals on the costs of repairing | ||||||
25 | the motor
vehicle, makes a copy of the estimate available upon | ||||||
26 | request to the renter who
may be liable under subsection (a), | ||||||
27 | or the insurer of the renter, and submits a
copy of the | ||||||
28 | estimate with any claim to collect the amount described in
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29 | subsection (b).
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30 | (e) Duty to mitigate. A claim against a renter resulting | ||||||
31 | from damage or
loss to a rental vehicle must be reasonably and | ||||||
32 | rationally related to the
actual loss incurred. A rental | ||||||
33 | company shall mitigate damages where possible
and shall not | ||||||
34 | assert or collect any claim for physical damage which exceeds | ||||||
35 | the
actual costs of the repair, including all discounts or | ||||||
36 | price reductions.
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1 | (f) No rental company shall require a deposit or an advance | ||||||
2 | charge
against
the credit card of a renter, in any form, for | ||||||
3 | damages to a vehicle which is in
the renter's possession, | ||||||
4 | custody, or control. No rental company shall require
any | ||||||
5 | payment for damage to the rental vehicle, upon the renter's | ||||||
6 | return of the
vehicle in a
damaged condition, until after the | ||||||
7 | cost of the damage to the vehicle and
liability therefor is | ||||||
8 | agreed to between the rental company and renter or is
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9 | determined pursuant to law.
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10 | (g) If insurance coverage exists under the renter's | ||||||
11 | personal insurance
policy and the coverage is confirmed during | ||||||
12 | regular business hours, the renter
may require that the rental
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13 | company must submit any claims to the renter's personal | ||||||
14 | insurance carrier as
the renter's agent. The rental company | ||||||
15 | shall not make any written or oral
representations that it will | ||||||
16 | not present claims or negotiate with the renter's
insurance | ||||||
17 | carrier. For purposes of this Section, confirmation of coverage
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18 | includes telephone confirmation from insurance company | ||||||
19 | representatives during
regular business hours. After
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20 | confirmation of coverage, the amount of claim shall be resolved | ||||||
21 | between the
insurance carrier and the rental company.
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22 | (Source: P.A. 90-113, eff. 7-14-97.)
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