Plain English Breakdown
The effective date is not listed in the provided official metadata or text excerpts.
Limits on Rental Car Loss of Use Fees
This law stops rental companies from charging extra 'loss of use' fees for accidents caused by simple mistakes, but allows them to charge up to 30 days if the damage was done on purpose or through criminal acts.
What This Bill Does
- Stops rental companies from getting paid for lost use when damage is caused by negligent (careless) acts.
- Allows recovery of fees only when the driver intentionally, willfully, or criminally damages the vehicle.
- Sets a maximum limit of 30 days for charging loss of use and administrative fees in allowed cases.
- Applies the same 30-day fee limit to shared vehicles like ride-sharing cars.
- Makes any rental contract rules that go against these limits invalid.
Who It Names or Affects
- Rental car companies
- Shared vehicle operators
- Renters and authorized drivers of vehicles
- Insurance providers for renters or drivers
Terms To Know
- Loss of use recovery
- Money a rental company charges to replace the income they lose while their car is being repaired.
- Negligent acts
- Accidents or damage caused by carelessness rather than on purpose, for which loss of use fees cannot be charged under this law.
- Intentional, wilful, or criminal acts
- Damage done on purpose with bad intent or through illegal behavior, where loss of use fees may still be charged up to 30 days.
Limits and Unknowns
- The official text does not state when this law officially takes effect.
- This bill only covers 'loss of use' and administrative costs; it does not change rules about paying for the physical repair of the car itself.
- While negligent acts are excluded, the law explicitly allows recovery from negligent third parties who were at fault.