98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2587

 

Introduced , by Rep. Arthur Turner

 

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

 

HB2587LRB098 07008 MLW 37067 b

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. The total liability of a renter
15under subsection (a) for damage to a motor vehicle may not
16exceed all of the following:
17        (1) The lesser of:
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
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.
18    For purposes of this subsection (b), for the period prior
19to June 1, 1998, the maximum amount that may be recovered from
20an authorized driver shall not exceed $6,000; for the period
21beginning June 1, 1998 through May 31, 1999, the maximum
22recovery shall not exceed $7,500; and for the period beginning
23June 1, 1999 through May 31, 2000, the maximum recovery shall
24not exceed $9,000. Beginning June 1, 2000, and annually each
25June 1 thereafter, the maximum amount that may be recovered
26from an authorized driver shall be increased by $500 above the

 

 

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1maximum recovery allowed immediately prior to June 1 of that
2year.
3    (c) Multiple recoveries prohibited. Any person who rents a
4motor vehicle to another may not hold the renter liable for any
5amounts that the rental company recovers from any other party.
6    (d) Repair estimates. A person who rents a motor vehicle to
7another may not collect or attempt to collect the amount
8described in subsection (b) unless the rental company obtains
9an estimate from a repair company or an appraiser in the
10business of providing such appraisals on the costs of repairing
11the motor vehicle, makes a copy of the estimate available upon
12request to the renter who may be liable under subsection (a),
13or the insurer of the renter, and submits a copy of the
14estimate with any claim to collect the amount described in
15subsection (b).
16    (e) Duty to mitigate. A claim against a renter resulting
17from damage or loss to a rental vehicle must be reasonably and
18rationally related to the actual loss incurred. A rental
19company shall mitigate damages where possible and shall not
20assert or collect any claim for physical damage which exceeds
21the actual costs of the repair, including all discounts or
22price reductions.
23    (f) No rental company shall require a deposit or an advance
24charge against the credit card of a renter, in any form, for
25damages to a vehicle which is in the renter's possession,
26custody, or control. No rental company shall require any

 

 

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1payment for damage to the rental vehicle, upon the renter's
2return of the vehicle in a damaged condition, until after the
3cost of the damage to the vehicle and liability therefor is
4agreed to between the rental company and renter or is
5determined pursuant to law.
6    (g) If insurance coverage exists under the renter's
7personal insurance policy and the coverage is confirmed during
8regular business hours, the renter may require that the rental
9company must submit any claims to the renter's personal
10insurance carrier as the renter's agent. The rental company
11shall not make any written or oral representations that it will
12not present claims or negotiate with the renter's insurance
13carrier. For purposes of this Section, confirmation of coverage
14includes telephone confirmation from insurance company
15representatives during regular business hours. After
16confirmation of coverage, the amount of claim shall be resolved
17between the insurance carrier and the rental company.
18(Source: P.A. 90-113, eff. 7-14-97.)
 
19    Section 99. Effective date. This Act takes effect January
201, 2014.