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1 | AN ACT concerning transportation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Vehicle Code is amended by changing | |||||||||||||||||||
5 | Section 6-305.2 as follows:
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6 | (625 ILCS 5/6-305.2)
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7 | Sec. 6-305.2. Limited liability for damage.
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8 | (a) Damage to private
passenger vehicle. A person who rents | |||||||||||||||||||
9 | a motor vehicle to another may hold
the renter liable to the | |||||||||||||||||||
10 | extent permitted under subsections (b) through (d) for
physical | |||||||||||||||||||
11 | or mechanical damage to the rented motor vehicle that occurs | |||||||||||||||||||
12 | during
the time the motor vehicle is under the rental | |||||||||||||||||||
13 | agreement.
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14 | (b) Limits on liability: vehicle MSRP $50,000 or less. The | |||||||||||||||||||
15 | total liability of a renter under subsection
(a) for damage to | |||||||||||||||||||
16 | a motor vehicle with a Manufacturer's Suggested Retail Price | |||||||||||||||||||
17 | (MSRP) of $50,000 or less may not exceed all of the following:
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18 | (1) The lesser of:
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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
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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
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6 | (2) Actual and reasonable costs incurred by the loss | ||||||
7 | due to theft of the
rental motor vehicle up to its fair | ||||||
8 | market value immediately before the loss occurred, as | ||||||
9 | calculated by a commonly and commercially accepted method | ||||||
10 | to establish a fair market value $2,000; provided, however, | ||||||
11 | that if it is
established that the renter or an authorized | ||||||
12 | driver failed to exercise ordinary
care while in possession | ||||||
13 | of the vehicle or that the renter or an authorized
driver | ||||||
14 | committed or aided and abetted the commission of the theft, | ||||||
15 | then the
damages shall be the actual and reasonable costs | ||||||
16 | of the rental vehicle up to
its fair market value, as | ||||||
17 | determined by the customary market for the sale of
that | ||||||
18 | vehicle .
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19 | For purposes of this subsection (b), for the period prior | ||||||
20 | to June 1, 1998,
the
maximum amount that may be recovered from | ||||||
21 | an authorized driver shall not exceed
$6,000; for the period | ||||||
22 | beginning June 1, 1998 through May 31, 1999, the maximum
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23 | recovery shall not exceed $7,500; and for the period beginning | ||||||
24 | June 1, 1999
through May 31, 2000, the maximum recovery shall | ||||||
25 | not exceed $9,000. Beginning
June
1, 2000,
and annually each | ||||||
26 | June 1 thereafter, the maximum amount that may be recovered
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1 | from an authorized driver shall be increased by $500 above the | ||||||
2 | maximum recovery
allowed immediately prior to June 1 of that | ||||||
3 | year.
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4 | (b-5) Limits on liability: vehicle MSRP more than $50,000. | ||||||
5 | The total liability of a renter under subsection (a) for damage | ||||||
6 | to a motor vehicle with a Manufacturer's Suggested Retail Price | ||||||
7 | (MSRP) of more than $50,000 may not exceed all of the | ||||||
8 | following: | ||||||
9 | (1) the lesser of: | ||||||
10 | (A) actual and reasonable costs that the person who | ||||||
11 | rents a motor vehicle to another incurred to repair the | ||||||
12 | motor vehicle or that the rental company would have | ||||||
13 | incurred if the motor vehicle had been repaired, which | ||||||
14 | shall reflect any discounts, price reductions, or | ||||||
15 | adjustments available to the rental company; or | ||||||
16 | (B) the fair market value of that motor vehicle | ||||||
17 | immediately before the damage occurred, as determined | ||||||
18 | in the customary market for the retail sale of that | ||||||
19 | motor vehicle; and | ||||||
20 | (2) the actual and reasonable costs incurred by the | ||||||
21 | loss due to theft of the rental motor vehicle up to | ||||||
22 | $40,000. | ||||||
23 | The maximum recovery for a motor vehicle with a | ||||||
24 | Manufacturer's Suggested Retail Price (MSRP) of more than | ||||||
25 | $50,000 under this subsection (b-5) shall not exceed $40,000 on | ||||||
26 | the effective date of this amendatory Act of the 99th General |
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1 | Assembly. On October 1, 2016, and for the next 3 years | ||||||
2 | thereafter, the maximum amount that may be recovered from an | ||||||
3 | authorized driver under this subsection (b-5) shall be | ||||||
4 | increased by $2,500 above the prior year's maximum recovery. On | ||||||
5 | October 1, 2020, and for each year thereafter, the maximum | ||||||
6 | amount that may be recovered from an authorized driver under | ||||||
7 | this subsection (b-5) shall be increased by $1,000 above the | ||||||
8 | prior year's maximum recovery. | ||||||
9 | (c) Multiple recoveries prohibited. Any person who rents a | ||||||
10 | motor
vehicle to another may not hold the renter liable for any | ||||||
11 | amounts that the
rental company recovers from any other party.
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12 | (d) Repair estimates. A person who rents a motor vehicle to | ||||||
13 | another may
not collect or attempt to collect the amount | ||||||
14 | described in subsection (b) or (b-5) unless
the rental company | ||||||
15 | obtains an estimate from a repair company or an appraiser in
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16 | the business of providing such appraisals on the costs of | ||||||
17 | repairing the motor
vehicle, makes a copy of the estimate | ||||||
18 | available upon request to the renter who
may be liable under | ||||||
19 | subsection (a), or the insurer of the renter, and submits a
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20 | copy of the estimate with any claim to collect the amount | ||||||
21 | described in
subsection (b) or (b-5). In order to collect the | ||||||
22 | amount described in subsection (b-5), a person renting a motor | ||||||
23 | vehicle to another must also provide the renter's personal | ||||||
24 | insurance company with reasonable notice and an opportunity to | ||||||
25 | inspect damages.
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26 | (d-5) In the event of loss due to theft of the rental motor |
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1 | vehicle with a MSRP more than $50,000, the rental company shall | ||||||
2 | provide reasonable notice of the theft to the renter's personal | ||||||
3 | insurance company. | ||||||
4 | (e) Duty to mitigate. A claim against a renter resulting | ||||||
5 | from damage or
loss to a rental vehicle must be reasonably and | ||||||
6 | rationally related to the
actual loss incurred. A rental | ||||||
7 | company shall mitigate damages where possible
and shall not | ||||||
8 | assert or collect any claim for physical damage which exceeds | ||||||
9 | the
actual costs of the repair, including all discounts or | ||||||
10 | price reductions.
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11 | (f) No rental company shall require a deposit or an advance | ||||||
12 | charge
against
the credit card of a renter, in any form, for | ||||||
13 | damages to a vehicle which is in
the renter's possession, | ||||||
14 | custody, or control. No rental company shall require
any | ||||||
15 | payment for damage to the rental vehicle, upon the renter's | ||||||
16 | return of the
vehicle in a
damaged condition, until after the | ||||||
17 | cost of the damage to the vehicle and
liability therefor is | ||||||
18 | agreed to between the rental company and renter or is
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19 | determined pursuant to law.
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20 | (g) If insurance coverage exists under the renter's | ||||||
21 | personal insurance
policy and the coverage is confirmed during | ||||||
22 | regular business hours, the renter
may require that the rental
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23 | company must submit any claims to the renter's personal | ||||||
24 | insurance carrier as
the renter's agent. The rental company | ||||||
25 | shall not make any written or oral
representations that it will | ||||||
26 | not present claims or negotiate with the renter's
insurance |
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1 | carrier. For purposes of this Section, confirmation of coverage
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2 | includes telephone confirmation from insurance company | ||||||
3 | representatives during
regular business hours. After
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4 | confirmation of coverage, the amount of claim shall be resolved | ||||||
5 | between the
insurance carrier and the rental company.
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6 | (Source: P.A. 99-201, eff. 10-1-15 .)
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