| ||||
Public Act 099-0201 | ||||
| ||||
| ||||
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. |