Menu
Log in
Forgot password


Customer’s Liability Changes for Loss or Theft of Rental Vehicles

Friday, December 08, 2023 9:00 AM | Anonymous member (Administrator)

Effective January 1, 2024, a customer’s responsibility for physical damage to a rental vehicle under Section 6-305.2 of the Illinois Vehicle Code has been modified to the following, which is beneficial to loss recovery for your dealership.

A Customer’s responsibility for damage to, loss of, or theft of a rental vehicle includes:

  • Physical and mechanical damage to the rental vehicle
  • Loss of Use
  • A reasonable administrative fee
  • All costs associated with the enforcement of this Agreement in the collection of Charges, attorney’s fees, collection fees and costs whether or not litigation has occurred.
  • Loss due to theft:
    • If the rental vehicle MSRP is $50,000 or less: up to a maximum of $5,000, unless you fail to exercise ordinary care while in possession of the rental vehicle or commit, or aide in, the theft of the rental vehicle. In that case, you will be liable up to the rental vehicle’s fair market value. Beginning June 1, 2024, the maximum amount recoverable for loss due to theft will increase by $500 on June 1st of each year.
    • If the rental vehicle MSRP is over $50,000: up to a maximum of $53,000 until September 30, 2024, unless you fail to exercise ordinary care while in possession of the rental vehicle or commit, or aide in, the theft of the rental vehicle. In that case, you will be liable up to the Vehicle’s fair market value. Beginning on October 1, 2024, the maximum amount recoverable for loss due to theft will increase by $1,000 on October 1st of each year.

The law change requires that a notice outlining these changes be posted in a conspicuous place for the customer to see. A copy of the sample notice is attached for your usage.

Additionally, the current Illinois version of the Vehicle Use Agreement (VUA) will be updated and available January 1, 2024, adding the updated loss payment conditions by your Fleet Management Software company and printing vendors.

Click here to view sample notice for your dealership.

Chicago Automobile Trade Association
18W200 Butterfield Rd.
Oakbrook Terrace, IL 60181 
(630) 495-2282

EMAIL US

Copyright © Chicago Automobile Trade Association.

Powered by Wild Apricot Membership Software