93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5209

 

Introduced 02/06/04, by Lovana Jones

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/6-305.2

    Amends the Illinois Vehicle Code. Makes a technical change in a provision concerning rental vehicles.


LRB093 18888 DRH 44623 b

 

 

A BILL FOR

 

HB5209 LRB093 18888 DRH 44623 b

1     AN ACT concerning transportation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Vehicle Code is amended by changing
5 Section 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
9 a motor vehicle to another person may hold the renter liable to
10 the extent permitted under subsections (b) through (d) for
11 physical or mechanical damage to the rented motor vehicle that
12 occurs during the time the motor vehicle is under the rental
13 agreement.
14     (b) Limits on liability. The total liability of a renter
15 under subsection (a) for damage to a motor vehicle may not
16 exceed 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
24             (B) The fair market value of that motor vehicle
25         immediately before the damage occurred, as determined
26         in the customary market for the retail sale of that
27         motor vehicle; and
28         (2) Actual and reasonable costs incurred by the loss
29     due to theft of the rental motor vehicle up to $2,000;
30     provided, however, that if it is established that the
31     renter or an authorized driver failed to exercise ordinary
32     care while in possession of the vehicle or that the renter

 

 

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1     or an authorized driver committed or aided and abetted the
2     commission of the theft, then the damages shall be the
3     actual and reasonable costs of the rental vehicle up to its
4     fair market value, as determined by the customary market
5     for the sale of that vehicle.
6     For purposes of this subsection (b), for the period prior
7 to June 1, 1998, the maximum amount that may be recovered from
8 an authorized driver shall not exceed $6,000; for the period
9 beginning June 1, 1998 through May 31, 1999, the maximum
10 recovery shall not exceed $7,500; and for the period beginning
11 June 1, 1999 through May 31, 2000, the maximum recovery shall
12 not exceed $9,000. Beginning June 1, 2000, and annually each
13 June 1 thereafter, the maximum amount that may be recovered
14 from an authorized driver shall be increased by $500 above the
15 maximum recovery allowed immediately prior to June 1 of that
16 year.
17     (c) Multiple recoveries prohibited. Any person who rents a
18 motor vehicle to another may not hold the renter liable for any
19 amounts that the rental company recovers from any other party.
20     (d) Repair estimates. A person who rents a motor vehicle to
21 another may not collect or attempt to collect the amount
22 described in subsection (b) unless the rental company obtains
23 an estimate from a repair company or an appraiser in the
24 business of providing such appraisals on the costs of repairing
25 the motor vehicle, makes a copy of the estimate available upon
26 request to the renter who may be liable under subsection (a),
27 or the insurer of the renter, and submits a copy of the
28 estimate with any claim to collect the amount described in
29 subsection (b).
30     (e) Duty to mitigate. A claim against a renter resulting
31 from damage or loss to a rental vehicle must be reasonably and
32 rationally related to the actual loss incurred. A rental
33 company shall mitigate damages where possible and shall not
34 assert or collect any claim for physical damage which exceeds
35 the actual costs of the repair, including all discounts or
36 price reductions.

 

 

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1     (f) No rental company shall require a deposit or an advance
2 charge against the credit card of a renter, in any form, for
3 damages to a vehicle which is in the renter's possession,
4 custody, or control. No rental company shall require any
5 payment for damage to the rental vehicle, upon the renter's
6 return of the vehicle in a damaged condition, until after the
7 cost of the damage to the vehicle and liability therefor is
8 agreed to between the rental company and renter or is
9 determined pursuant to law.
10     (g) If insurance coverage exists under the renter's
11 personal insurance policy and the coverage is confirmed during
12 regular business hours, the renter may require that the rental
13 company must submit any claims to the renter's personal
14 insurance carrier as the renter's agent. The rental company
15 shall not make any written or oral representations that it will
16 not present claims or negotiate with the renter's insurance
17 carrier. For purposes of this Section, confirmation of coverage
18 includes telephone confirmation from insurance company
19 representatives during regular business hours. After
20 confirmation of coverage, the amount of claim shall be resolved
21 between the insurance carrier and the rental company.
22 (Source: P.A. 90-113, eff. 7-14-97.)