103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1497 Introduced , 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. LRB103 04797 HEP 49807 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1497 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 625 ILCS 5/6-305.2 625 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. LRB103 04797 HEP 49807 b LRB103 04797 HEP 49807 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1497 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
625 ILCS 5/6-305.2 625 ILCS 5/6-305.2
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.
LRB103 04797 HEP 49807 b LRB103 04797 HEP 49807 b
LRB103 04797 HEP 49807 b
A BILL FOR
HB1497LRB103 04797 HEP 49807 b HB1497 LRB103 04797 HEP 49807 b
HB1497 LRB103 04797 HEP 49807 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
5 changing 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
9 rents a motor vehicle to another 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: vehicle MSRP $50,000 or less. The
15 total liability of a renter under subsection (a) for damage to
16 a 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
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1497 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
625 ILCS 5/6-305.2 625 ILCS 5/6-305.2
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.
LRB103 04797 HEP 49807 b LRB103 04797 HEP 49807 b
LRB103 04797 HEP 49807 b
A BILL FOR
625 ILCS 5/6-305.2
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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
18 to June 1, 1998, the maximum amount that may be recovered from
19 an authorized driver shall not exceed $6,000; for the period
20 beginning June 1, 1998 through May 31, 1999, the maximum
21 recovery shall not exceed $7,500; and for the period beginning
22 June 1, 1999 through May 31, 2000, the maximum recovery shall
23 not exceed $9,000. Beginning June 1, 2000, and annually each
24 June 1 thereafter, the maximum amount that may be recovered
25 from an authorized driver shall be increased by $500 above the
26 maximum recovery allowed immediately prior to June 1 of that
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1 year.
2 (b-5) (Blank). Limits on liability: vehicle MSRP more than
3 $50,000. The total liability of a renter under subsection (a)
4 for damage to a motor vehicle with a Manufacturer's Suggested
5 Retail Price (MSRP) of more than $50,000 may not exceed all of
6 the 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
23 Manufacturer's Suggested Retail Price (MSRP) of more than
24 $50,000 under this subsection (b-5) shall not exceed $40,000
25 on the effective date of this amendatory Act of the 99th
26 General Assembly. On October 1, 2016, and for the next 3 years
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1 thereafter, the maximum amount that may be recovered from an
2 authorized driver under this subsection (b-5) shall be
3 increased by $2,500 above the prior year's maximum recovery.
4 On October 1, 2020, and for each year thereafter, the maximum
5 amount that may be recovered from an authorized driver under
6 this subsection (b-5) shall be increased by $1,000 above the
7 prior year's maximum recovery.
8 (c) Multiple recoveries prohibited. Any person who rents a
9 motor vehicle to another may not hold the renter liable for any
10 amounts that the rental company recovers from any other party.
11 (d) Repair estimates. A person who rents a motor vehicle
12 to another may not collect or attempt to collect the amount
13 described in subsection (b) or (b-5) unless the rental company
14 obtains an estimate from a repair company or an appraiser in
15 the business of providing such appraisals on the costs of
16 repairing the motor vehicle, makes a copy of the estimate
17 available upon request to the renter who may be liable under
18 subsection (a), or the insurer of the renter, and submits a
19 copy of the estimate with any claim to collect the amount
20 described in subsection (b) or (b-5). In order to collect the
21 amount described in subsection (b-5), a person renting a motor
22 vehicle to another must also provide the renter's personal
23 insurance company with reasonable notice and an opportunity to
24 inspect damages.
25 (d-5) In the event of loss due to theft of the rental motor
26 vehicle with a MSRP more than $50,000, the rental company
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1 shall provide reasonable notice of the theft to the renter's
2 personal insurance company.
3 (e) Duty to mitigate. A claim against a renter resulting
4 from damage or loss to a rental vehicle must be reasonably and
5 rationally related to the actual loss incurred. A rental
6 company shall mitigate damages where possible and shall not
7 assert or collect any claim for physical damage which exceeds
8 the actual costs of the repair, including all discounts or
9 price reductions.
10 (f) No rental company shall require a deposit or an
11 advance charge against the credit card of a renter, in any
12 form, for damages to a vehicle which is in the renter's
13 possession, custody, or control. No rental company shall
14 require any payment for damage to the rental vehicle, upon the
15 renter's return of the vehicle in a damaged condition, until
16 after the cost of the damage to the vehicle and liability
17 therefor is agreed to between the rental company and renter or
18 is determined pursuant to law.
19 (g) If insurance coverage exists under the renter's
20 personal insurance policy and the coverage is confirmed during
21 regular business hours, the renter may require that the rental
22 company must submit any claims to the renter's personal
23 insurance carrier as the renter's agent. The rental company
24 shall not make any written or oral representations that it
25 will not present claims or negotiate with the renter's
26 insurance carrier. For purposes of this Section, confirmation
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1 of coverage includes telephone confirmation from insurance
2 company representatives during regular business hours. After
3 confirmation of coverage, the amount of claim shall be
4 resolved between the insurance carrier and the rental company.
5 (Source: P.A. 99-201, eff. 10-1-15.)
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