97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3557

 

Introduced 2/8/2012, by Sen. Antonio Muņoz

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/6-305.2

    Amends the Illinois Vehicle Code. Provides that if it is established that the renter or an authorized driver is not able to return the original keys to the vehicle (instead of "failed to exercise ordinary care while in possession of the vehicle"), damages for the loss of a rental vehicle due to theft shall be the actual and reasonable costs of the rental vehicle up to its fair market value.


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A BILL FOR

 

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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 $2,000;
7    provided, however, that if it is established that the
8    renter or an authorized driver is not able to return the
9    original keys of the vehicle failed to exercise ordinary
10    care while in possession of the vehicle or that the renter
11    or an authorized driver committed or aided and abetted the
12    commission of the theft, then the damages shall be the
13    actual and reasonable costs of the rental vehicle up to its
14    fair market value, as determined by the customary market
15    for the sale of that vehicle.
16    For purposes of this subsection (b), for the period prior
17to June 1, 1998, the maximum amount that may be recovered from
18an authorized driver shall not exceed $6,000; for the period
19beginning June 1, 1998 through May 31, 1999, the maximum
20recovery shall not exceed $7,500; and for the period beginning
21June 1, 1999 through May 31, 2000, the maximum recovery shall
22not exceed $9,000. Beginning June 1, 2000, and annually each
23June 1 thereafter, the maximum amount that may be recovered
24from an authorized driver shall be increased by $500 above the
25maximum recovery allowed immediately prior to June 1 of that
26year.

 

 

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

 

 

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