Plain English Breakdown
The bill has passed both chambers but is currently awaiting executive action; therefore, it is not yet law and has no effective date until signed by the Governor.
HB382: Allowing Rental and Shared Car Companies to Charge for Lost Use
This bill changes Delaware law so rental car companies and peer-to-peer sharing programs can charge drivers or their insurers when a vehicle cannot be used due to the driver's fault.
What This Bill Does
- Allows rental car companies to recover loss of use damages from negligent, intentional, willful, or criminal acts by renters or authorized drivers.
- Permits recovery of these costs from the at-fault party, their insurer, or other sources providing coverage.
- Enables peer-to-peer car sharing programs and vehicle owners to charge for lost use when a shared vehicle driver causes damage through fault.
- Declares any rental or sharing contract that blocks this recovery as invalid under public policy.
Who It Names or Affects
- Rental car companies operating in Delaware
- Peer-to-peer car sharing programs and the owners of vehicles shared through them
- Drivers who rent cars or use shared vehicles through these platforms
- Insurance companies that cover drivers mentioned above
Terms To Know
- Loss of use damages
- Money charged to replace income lost while a vehicle is being repaired or replaced after an accident.
- Peer-to-peer car sharing
- A system where private individuals rent their personal vehicles directly to other drivers through a program.
Limits and Unknowns
- The law only applies to contracts signed, renewed, or extended after the bill becomes effective.
- It does not stop companies from seeking these damages from negligent third parties who are not the driver or renter.
- The exact date this law takes effect is 90 days after it is officially enacted.