100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1732

 

Introduced 2/9/2017, by Sen. Antonio Muņoz

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/6-305.2

    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.


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A BILL FOR

 

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1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by changing
5Section 6-305.2 as follows:
 
6    (625 ILCS 5/6-305.2)
7    Sec. 6-305.2. Limited liability for damage.
8    (a) Damage to private passenger vehicle. A person who rents
9a motor vehicle to another may hold the renter liable to the
10extent permitted under subsections (b) through (d) for physical
11or mechanical damage to the rented motor vehicle that occurs
12during the time the motor vehicle is under the rental
13agreement.
14    (b) Limits on liability: vehicle MSRP $50,000 or less. The
15total liability of a renter under subsection (a) for damage to
16a motor vehicle with a Manufacturer's Suggested Retail Price
17(MSRP) of $50,000 or less may not exceed all of the following:
18        (1) The lesser of:
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
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
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
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.
16    For purposes of this subsection (b), for the period prior
17to June 1, 1998, the maximum amount that may be recovered from
18an authorized driver shall not exceed $6,000; for the period
19beginning June 1, 1998 through May 31, 1999, the maximum
20recovery shall not exceed $7,500; and for the period beginning
21June 1, 1999 through May 31, 2000, the maximum recovery shall
22not exceed $9,000. Beginning June 1, 2000, and annually each
23June 1 thereafter, the maximum amount that may be recovered
24from an authorized driver shall be increased by $500 above the
25maximum recovery allowed immediately prior to June 1 of that
26year.

 

 

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1    (b-5) Limits on liability: vehicle MSRP more than $50,000.
2The total liability of a renter under subsection (a) for damage
3to a motor vehicle with a Manufacturer's Suggested Retail Price
4(MSRP) of more than $50,000 may not exceed all of the
5following:
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
21Manufacturer's Suggested Retail Price (MSRP) of more than
22$50,000 under this subsection (b-5) shall not exceed $40,000 on
23the effective date of this amendatory Act of the 99th General
24Assembly. On October 1, 2016, and for the next 3 years
25thereafter, the maximum amount that may be recovered from an
26authorized driver under this subsection (b-5) shall be

 

 

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1increased by $2,500 above the prior year's maximum recovery. On
2October 1, 2020, and for each year thereafter, the maximum
3amount that may be recovered from an authorized driver under
4this subsection (b-5) shall be increased by $1,000 above the
5prior year's maximum recovery.
6    (c) Multiple recoveries prohibited. Any person who rents a
7motor vehicle to another may not hold the renter liable for any
8amounts that the rental company recovers from any other party.
9    (d) Repair estimates. A person who rents a motor vehicle to
10another may not collect or attempt to collect the amount
11described in subsection (b) or (b-5) unless the rental company
12obtains an estimate from a repair company or an appraiser in
13the business of providing such appraisals on the costs of
14repairing the motor vehicle, makes a copy of the estimate
15available upon request to the renter who may be liable under
16subsection (a), or the insurer of the renter, and submits a
17copy of the estimate with any claim to collect the amount
18described in subsection (b) or (b-5). In order to collect the
19amount described in subsection (b-5), a person renting a motor
20vehicle to another must also provide the renter's personal
21insurance company with reasonable notice and an opportunity to
22inspect damages. A person renting a motor vehicle to another
23may immediately collect an insurance deductible from a renter
24for any visible damage to a rented vehicle that exceeds $500
25without the renter's personal insurance company first
26assessing the damage to the vehicle or processing the insurance

 

 

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1claim.
2    (d-5) In the event of loss due to theft of the rental motor
3vehicle with a MSRP more than $50,000, the rental company shall
4provide reasonable notice of the theft to the renter's personal
5insurance company.
6    (e) Duty to mitigate. A claim against a renter resulting
7from damage or loss to a rental vehicle must be reasonably and
8rationally related to the actual loss incurred. A rental
9company shall mitigate damages where possible and shall not
10assert or collect any claim for physical damage which exceeds
11the actual costs of the repair, including all discounts or
12price reductions.
13    (f) No rental company shall require a deposit or an advance
14charge against the credit card of a renter, in any form, for
15damages to a vehicle which is in the renter's possession,
16custody, or control. No rental company shall require any
17payment for damage to the rental vehicle, upon the renter's
18return of the vehicle in a damaged condition, until after the
19cost of the damage to the vehicle and liability therefor is
20agreed to between the rental company and renter or is
21determined pursuant to law.
22    (g) If insurance coverage exists under the renter's
23personal insurance policy and the coverage is confirmed during
24regular business hours, the renter may require that the rental
25company must submit any claims to the renter's personal
26insurance carrier as the renter's agent. The rental company

 

 

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1shall not make any written or oral representations that it will
2not present claims or negotiate with the renter's insurance
3carrier. For purposes of this Section, confirmation of coverage
4includes telephone confirmation from insurance company
5representatives during regular business hours. After
6confirmation of coverage, the amount of claim shall be resolved
7between the insurance carrier and the rental company.
8(Source: P.A. 99-201, eff. 10-1-15.)