101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5092

 

Introduced 2/18/2020, by Rep. Justin Slaughter

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/6-305.2

    Amends the Illinois Vehicle Code. Increases the maximum liability of a renter of a vehicle with a manufacturer's suggested retail price of $50,000 or less for damages resulting from loss due to theft of the vehicle from $2,000 to the actual and reasonable costs incurred up to the fair market value of the vehicle immediately before the loss occurred, as calculated by a commonly and commercially accepted method to establish a fair market value.


LRB101 18263 HEP 67708 b

 

 

A BILL FOR

 

HB5092LRB101 18263 HEP 67708 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 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: vehicle MSRP $50,000 or less. The
15total liability of a renter under subsection (a) for damage to
16a motor vehicle with a Manufacturer's Suggested Retail Price
17(MSRP) of $50,000 or less may not exceed all of the following:
18        (1) The lesser of:
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
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
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.
19    For purposes of this subsection (b), for the period prior
20to June 1, 1998, the maximum amount that may be recovered from
21an authorized driver shall not exceed $6,000; for the period
22beginning June 1, 1998 through May 31, 1999, the maximum
23recovery shall not exceed $7,500; and for the period beginning
24June 1, 1999 through May 31, 2000, the maximum recovery shall
25not exceed $9,000. Beginning June 1, 2000, and annually each
26June 1 thereafter, the maximum amount that may be recovered

 

 

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1from an authorized driver shall be increased by $500 above the
2maximum recovery allowed immediately prior to June 1 of that
3year.
4    (b-5) Limits on liability: vehicle MSRP more than $50,000.
5The total liability of a renter under subsection (a) for damage
6to a motor vehicle with a Manufacturer's Suggested Retail Price
7(MSRP) of more than $50,000 may not exceed all of the
8following:
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
24Manufacturer's Suggested Retail Price (MSRP) of more than
25$50,000 under this subsection (b-5) shall not exceed $40,000 on
26the effective date of this amendatory Act of the 99th General

 

 

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1Assembly. On October 1, 2016, and for the next 3 years
2thereafter, the maximum amount that may be recovered from an
3authorized driver under this subsection (b-5) shall be
4increased by $2,500 above the prior year's maximum recovery. On
5October 1, 2020, and for each year thereafter, the maximum
6amount that may be recovered from an authorized driver under
7this subsection (b-5) shall be increased by $1,000 above the
8prior year's maximum recovery.
9    (c) Multiple recoveries prohibited. Any person who rents a
10motor vehicle to another may not hold the renter liable for any
11amounts that the rental company recovers from any other party.
12    (d) Repair estimates. A person who rents a motor vehicle to
13another may not collect or attempt to collect the amount
14described in subsection (b) or (b-5) unless the rental company
15obtains an estimate from a repair company or an appraiser in
16the business of providing such appraisals on the costs of
17repairing the motor vehicle, makes a copy of the estimate
18available upon request to the renter who may be liable under
19subsection (a), or the insurer of the renter, and submits a
20copy of the estimate with any claim to collect the amount
21described in subsection (b) or (b-5). In order to collect the
22amount described in subsection (b-5), a person renting a motor
23vehicle to another must also provide the renter's personal
24insurance company with reasonable notice and an opportunity to
25inspect damages.
26    (d-5) In the event of loss due to theft of the rental motor

 

 

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1vehicle with a MSRP more than $50,000, the rental company shall
2provide reasonable notice of the theft to the renter's personal
3insurance company.
4    (e) Duty to mitigate. A claim against a renter resulting
5from damage or loss to a rental vehicle must be reasonably and
6rationally related to the actual loss incurred. A rental
7company shall mitigate damages where possible and shall not
8assert or collect any claim for physical damage which exceeds
9the actual costs of the repair, including all discounts or
10price reductions.
11    (f) No rental company shall require a deposit or an advance
12charge against the credit card of a renter, in any form, for
13damages to a vehicle which is in the renter's possession,
14custody, or control. No rental company shall require any
15payment for damage to the rental vehicle, upon the renter's
16return of the vehicle in a damaged condition, until after the
17cost of the damage to the vehicle and liability therefor is
18agreed to between the rental company and renter or is
19determined pursuant to law.
20    (g) If insurance coverage exists under the renter's
21personal insurance policy and the coverage is confirmed during
22regular business hours, the renter may require that the rental
23company must submit any claims to the renter's personal
24insurance carrier as the renter's agent. The rental company
25shall not make any written or oral representations that it will
26not present claims or negotiate with the renter's insurance

 

 

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1carrier. For purposes of this Section, confirmation of coverage
2includes telephone confirmation from insurance company
3representatives during regular business hours. After
4confirmation of coverage, the amount of claim shall be resolved
5between the insurance carrier and the rental company.
6(Source: P.A. 99-201, eff. 10-1-15.)