103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1497

 

Introduced 1/31/2023, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/6-305.2

    Amends the Illinois Vehicle Code. Deletes language limiting the liability of a renter for damage to a vehicle to $2,000 for a vehicle with a Manufacturer's Suggested Retail Price of $50,000 or less, and $40,000 for a vehicle with a Manufacturer's Suggested Retail Price greater than $50,000.


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A BILL FOR

 

HB1497LRB103 04797 HEP 49807 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
5changing 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
9rents a motor vehicle to another may hold the renter liable to
10the extent permitted under subsections (b) through (d) for
11physical or mechanical damage to the rented motor vehicle that
12occurs during 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
20        who rents a motor vehicle to another incurred to
21        repair the motor vehicle or that the rental company
22        would have incurred if the motor vehicle had been
23        repaired, which shall reflect any discounts, price

 

 

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

 

 

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1year.
2    (b-5) (Blank). Limits on liability: vehicle MSRP more than
3$50,000. The total liability of a renter under subsection (a)
4for damage to a motor vehicle with a Manufacturer's Suggested
5Retail Price (MSRP) of more than $50,000 may not exceed all of
6the following:
7        (1) the lesser of:
8            (A) actual and reasonable costs that the person
9        who rents a motor vehicle to another incurred to
10        repair the motor vehicle or that the rental company
11        would have incurred if the motor vehicle had been
12        repaired, which shall reflect any discounts, price
13        reductions, or adjustments available to the rental
14        company; or
15            (B) the fair market value of that motor vehicle
16        immediately before the damage occurred, as determined
17        in the customary market for the retail sale of that
18        motor vehicle; and
19        (2) the actual and reasonable costs incurred by the
20    loss due to theft of the rental motor vehicle up to
21    $40,000.
22    The maximum recovery for a motor vehicle with a
23Manufacturer's Suggested Retail Price (MSRP) of more than
24$50,000 under this subsection (b-5) shall not exceed $40,000
25on the effective date of this amendatory Act of the 99th
26General Assembly. On October 1, 2016, and for the next 3 years

 

 

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1thereafter, the maximum amount that may be recovered from an
2authorized driver under this subsection (b-5) shall be
3increased by $2,500 above the prior year's maximum recovery.
4On October 1, 2020, and for each year thereafter, the maximum
5amount that may be recovered from an authorized driver under
6this subsection (b-5) shall be increased by $1,000 above the
7prior year's maximum recovery.
8    (c) Multiple recoveries prohibited. Any person who rents a
9motor vehicle to another may not hold the renter liable for any
10amounts that the rental company recovers from any other party.
11    (d) Repair estimates. A person who rents a motor vehicle
12to another may not collect or attempt to collect the amount
13described in subsection (b) or (b-5) unless the rental company
14obtains an estimate from a repair company or an appraiser in
15the business of providing such appraisals on the costs of
16repairing the motor vehicle, makes a copy of the estimate
17available upon request to the renter who may be liable under
18subsection (a), or the insurer of the renter, and submits a
19copy of the estimate with any claim to collect the amount
20described in subsection (b) or (b-5). In order to collect the
21amount described in subsection (b-5), a person renting a motor
22vehicle to another must also provide the renter's personal
23insurance company with reasonable notice and an opportunity to
24inspect damages.
25    (d-5) In the event of loss due to theft of the rental motor
26vehicle with a MSRP more than $50,000, the rental company

 

 

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

 

 

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