Illinois General Assembly - Full Text of Public Act 099-0201
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Public Act 099-0201


 

Public Act 0201 99TH GENERAL ASSEMBLY



 


 
Public Act 099-0201
 
SB0626 EnrolledLRB099 03341 RJF 23349 b

    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: vehicle MSRP $50,000 or less. The
total liability of a renter under subsection (a) for damage to
a motor vehicle with a Manufacturer's Suggested Retail Price
(MSRP) of $50,000 or less 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
            (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 $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
maximum recovery allowed immediately prior to June 1 of that
year.
    (b-5) Limits on liability: vehicle MSRP more than $50,000.
The total liability of a renter under subsection (a) for damage
to a motor vehicle with a Manufacturer's Suggested Retail Price
(MSRP) of more than $50,000 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
            (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) the actual and reasonable costs incurred by the
    loss due to theft of the rental motor vehicle up to
    $40,000.
    The maximum recovery for a motor vehicle with a
Manufacturer's Suggested Retail Price (MSRP) of more than
$50,000 under this subsection (b-5) shall not exceed $40,000 on
the effective date of this amendatory Act of the 99th General
Assembly. On October 1, 2016, and for the next 3 years
thereafter, the maximum amount that may be recovered from an
authorized driver under this subsection (b-5) shall be
increased by $2,500 above the prior year's maximum recovery. On
October 1, 2020, and for each year thereafter, the maximum
amount that may be recovered from an authorized driver under
this subsection (b-5) shall be increased by $1,000 above the
prior year's maximum recovery.
    (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) or (b-5) 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) or (b-5). In order to collect the
amount described in subsection (b-5), a person renting a motor
vehicle to another must also provide the renter's personal
insurance company with reasonable notice and an opportunity to
inspect damages.
    (d-5) In the event of loss due to theft of the rental motor
vehicle with a MSRP more than $50,000, the rental company shall
provide reasonable notice of the theft to the renter's personal
insurance company.
    (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
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 10. The Renter's Financial Responsibility and
Protection Act is amended by changing Section 15 as follows:
 
    (625 ILCS 27/15)
    Sec. 15. Prohibited practices.
    (a) A rental company may not sell a damage waiver unless
the renter agrees to the damage waiver in writing at or prior
to the time the rental agreement is executed.
    (b) A rental company may not void a damage waiver except
for one or more of the following reasons:
        (1) Damage or loss while the rental vehicle is used to
    carry persons or property for a charge or fee.
        (2) Damage or loss during an organized or agreed upon
    racing or speed contest or demonstration or pushing or
    pulling activity in which the rental vehicle is actively
    involved.
        (3) Damage or loss that could reasonably be expected
    from an intentional or criminal act of the driver other
    than a traffic infraction.
        (4) Damage or loss to any rental vehicle resulting from
    any auto business operation, including but not limited to
    repairing, servicing, testing, washing, parking, storing,
    or selling of automobiles.
        (5) Damage or loss occurring to a rental vehicle if the
    rental contract is based on fraudulent or material
    misrepresentation by the renter.
        (6) Damage or loss arising out of the use of the rental
    vehicle outside the continental United States when such use
    is specifically prohibited in the rental agreement.
        (7) Damage or loss occurring while the rental vehicle
    is operated by a driver not permitted under the rental
    agreement.
        (8) Damage or loss occurring while the rental vehicle
    is operated by a driver under the influence of alcohol,
    other drug or drugs, intoxicating compound or compounds, or
    any combination thereof and convicted of violating
    subsection (a) of Section 11-501 of the Illinois Vehicle
    Code.
    (c) A rental company shall not charge more than $12.50 per
full or partial 24 hour rental day for a collision damage
waiver prior to January 1, 2014. Beginning January 1, 2014, a
rental company shall not charge more than $13.50 per full or
partial 24 hour rental day for a collision damage waiver.
    (d) A rental company may offer a collision damage waiver on
any rental vehicle having a value in excess of a Manufacturer's
Suggested Retail Price (MSRP) of $50,000; however, the
provisions of subsection (c) of this Section shall not apply to
collision damage waivers under this subsection (d).
(Source: P.A. 98-428, eff. 8-16-13.)
 
    Section 99. Effective date. This Act takes effect October
1, 2015.

Effective Date: 10/1/2015