99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3713

 

Introduced , by Rep. Arthur Turner

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/6-305.2

    Amends the Illinois Vehicle Code. Makes a technical change in a Section concerning limits on liability for damages to vehicles.


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A BILL FOR

 

HB3713LRB099 09777 RJF 29987 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 the renter liable to
10the extent permitted under subsections (b) through (d) for
11physical or mechanical damage to the rented motor vehicle that
12occurs during 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 $2,000;
7    provided, however, that if it is established that the
8    renter or an authorized driver failed to exercise ordinary
9    care while in possession of the vehicle or that the renter
10    or an authorized driver committed or aided and abetted the
11    commission of the theft, then the damages shall be the
12    actual and reasonable costs of the rental vehicle up to its
13    fair market value, as determined by the customary market
14    for the sale of that vehicle.
15    For purposes of this subsection (b), for the period prior
16to June 1, 1998, the maximum amount that may be recovered from
17an authorized driver shall not exceed $6,000; for the period
18beginning June 1, 1998 through May 31, 1999, the maximum
19recovery shall not exceed $7,500; and for the period beginning
20June 1, 1999 through May 31, 2000, the maximum recovery shall
21not exceed $9,000. Beginning June 1, 2000, and annually each
22June 1 thereafter, the maximum amount that may be recovered
23from an authorized driver shall be increased by $500 above the
24maximum recovery allowed immediately prior to June 1 of that
25year.
26    (c) Multiple recoveries prohibited. Any person who rents a

 

 

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

 

 

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1agreed to between the rental company and renter or is
2determined pursuant to law.
3    (g) If insurance coverage exists under the renter's
4personal insurance policy and the coverage is confirmed during
5regular business hours, the renter may require that the rental
6company must submit any claims to the renter's personal
7insurance carrier as the renter's agent. The rental company
8shall not make any written or oral representations that it will
9not present claims or negotiate with the renter's insurance
10carrier. For purposes of this Section, confirmation of coverage
11includes telephone confirmation from insurance company
12representatives during regular business hours. After
13confirmation of coverage, the amount of claim shall be resolved
14between the insurance carrier and the rental company.
15(Source: P.A. 90-113, eff. 7-14-97.)