Illinois Compiled Statutes
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625 ILCS 5/6-305.2
(625 ILCS 5/6-305.2)
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. The total liability of a renter under subsection
(a) for damage to a motor vehicle 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,
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
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.
(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) 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
(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
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.)