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| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB1592 Introduced 2/15/2011, by Rep. Rich Brauer SYNOPSIS AS INTRODUCED: |
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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, 2012.
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| | A BILL FOR |
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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. 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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1 | | (B) The fair market value of that motor vehicle |
2 | | immediately before the
damage occurred, as determined |
3 | | in the customary market for the retail sale of
that |
4 | | motor vehicle; and
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5 | | (2) Actual and reasonable costs incurred by the loss |
6 | | due to theft of the
rental motor vehicle up to its fair |
7 | | market value immediately before the loss occurred, as |
8 | | calculated by a commonly and commercially accepted method |
9 | | to establish a fair market value $2,000; provided, however, |
10 | | that if it is
established that the renter or an authorized |
11 | | driver failed to exercise ordinary
care while in possession |
12 | | of the vehicle or that the renter or an authorized
driver |
13 | | committed or aided and abetted the commission of the theft, |
14 | | then the
damages shall be the actual and reasonable costs |
15 | | of the rental vehicle up to
its fair market value, as |
16 | | determined by the customary market for the sale of
that |
17 | | vehicle .
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18 | | For purposes of this subsection (b), for the period prior |
19 | | to June 1, 1998,
the
maximum amount that may be recovered from |
20 | | an authorized driver shall not exceed
$6,000; for the period |
21 | | beginning June 1, 1998 through May 31, 1999, the maximum
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22 | | recovery shall not exceed $7,500; and for the period beginning |
23 | | June 1, 1999
through May 31, 2000, the maximum recovery shall |
24 | | not exceed $9,000. Beginning
June
1, 2000,
and annually each |
25 | | June 1 thereafter, the maximum amount that may be recovered
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26 | | from an authorized driver shall be increased by $500 above the |
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1 | | maximum recovery
allowed immediately prior to June 1 of that |
2 | | year.
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3 | | (c) Multiple recoveries prohibited. Any person who rents a |
4 | | motor
vehicle to another may not hold the renter liable for any |
5 | | amounts that the
rental company recovers from any other party.
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6 | | (d) Repair estimates. A person who rents a motor vehicle to |
7 | | another may
not collect or attempt to collect the amount |
8 | | described in subsection (b) unless
the rental company obtains |
9 | | an estimate from a repair company or an appraiser in
the |
10 | | business of providing such appraisals on the costs of repairing |
11 | | the motor
vehicle, makes a copy of the estimate available upon |
12 | | request to the renter who
may be liable under subsection (a), |
13 | | or the insurer of the renter, and submits a
copy of the |
14 | | estimate with any claim to collect the amount described in
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15 | | subsection (b).
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16 | | (e) Duty to mitigate. A claim against a renter resulting |
17 | | from damage or
loss to a rental vehicle must be reasonably and |
18 | | rationally related to the
actual loss incurred. A rental |
19 | | company shall mitigate damages where possible
and shall not |
20 | | assert or collect any claim for physical damage which exceeds |
21 | | the
actual costs of the repair, including all discounts or |
22 | | price reductions.
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23 | | (f) No rental company shall require a deposit or an advance |
24 | | charge
against
the credit card of a renter, in any form, for |
25 | | damages to a vehicle which is in
the renter's possession, |
26 | | custody, or control. No rental company shall require
any |
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1 | | payment for damage to the rental vehicle, upon the renter's |
2 | | return of the
vehicle in a
damaged condition, until after the |
3 | | cost of the damage to the vehicle and
liability therefor is |
4 | | agreed to between the rental company and renter or is
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5 | | determined pursuant to law.
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6 | | (g) If insurance coverage exists under the renter's |
7 | | personal insurance
policy and the coverage is confirmed during |
8 | | regular business hours, the renter
may require that the rental
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9 | | company must submit any claims to the renter's personal |
10 | | insurance carrier as
the renter's agent. The rental company |
11 | | shall not make any written or oral
representations that it will |
12 | | not present claims or negotiate with the renter's
insurance |
13 | | carrier. For purposes of this Section, confirmation of coverage
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14 | | includes telephone confirmation from insurance company |
15 | | representatives during
regular business hours. After
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16 | | confirmation of coverage, the amount of claim shall be resolved |
17 | | between the
insurance carrier and the rental company.
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18 | | (Source: P.A. 90-113, eff. 7-14-97.)
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19 | | Section 99. Effective date. This Act takes effect January |
20 | | 1, 2012.
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