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.



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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.)