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Legislation Document
SPONSOR:
Rep. Lynn & Sen. Hoffner
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE BILL NO. 382
AN ACT TO AMEND TITLES 6 AND 21 OF THE DELAWARE CODE RELATING TO RENTAL CARS AND PEER- TO-PEER CAR SHARING LOSS OF USE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 4902B, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 4902B. Loss of use damages
prohibited
[For applicability of this section, see 84 Del. Laws, c. 363, § 3].
(a) Damages incurred by rental companies for the loss of use of a rental vehicle and related administrative fees shall not be recovered from any renter, authorized driver, or the renter’s or authorized driver’s insurer. Nothing in this section shall be construed as prohibiting recovery of loss of use damages from negligent third parties.
(a) A rental company may recover damages from any negligent or otherwise at fault party, including the rental car driver; the negligent party’s insurer, or any other collateral source providing protection or coverage to the negligent or otherwise at fault party.
(b) Any rental agreement or other contract inconsistent with the provisions of this section shall be deemed void as against public policy.
Section 2. Amend § 8614, Title 21 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 8614. Loss of use damages
prohibited
[For application of this section, see 84 Del. Laws, c. 363, § 3].
(a) For the purposes of this section, “loss of use” means the deprivation of the use of a person’s vehicle during the period reasonably required to make repairs or replace the vehicle.
(b) Damages incurred by shared vehicle owners or peer-to-peer car sharing programs for the loss of use of a
rental
shared
vehicle and related administrative fees
shall
not
may
be recovered from any
renter, authorized driver,
shared vehicle driver
or
the renter’s or authorized driver's
the shared vehicle driver’s
insurer
in instances where such damages are the result of negligence, intentional, wilful, or criminal acts on the part of the shared vehicle driver
. Nothing in this section shall be construed as prohibiting recovery of loss of use damages from negligent third parties.
(c) Any car sharing program agreement or other contract inconsistent with the provisions of this section shall be deemed void as against public policy.
Section 3. This Act takes effect 90 days after its enactment into law, and applies to all contracts entered into, renewed, or extended after the effective date.
SYNOPSIS
This Act allows rental car companies and peer-to-peer car sharing programs to recover loss of use damages from any rental car drivers, shared vehicle drivers, or the negligent party’s insurer caused by any renter or an authorized driver’s negligent, intentional, willful, or criminal acts resulting in a loss of the vehicle’s use.