On Aug. 24, Illinois Gov. Bruce Rauner signed S.B. 1730. This bill amends the Illinois damage waiver law by removing the $13.50 per day cap on damage waivers for vehicles with a Manufacturer’s Suggested Retail Price (MSRP) of $50,000 or less.
Previously, the Renter’s Financial Responsibility and Protection Act provided that a rental company couldn’t charge more than $13.50 per rental day for a collision damage waiver.
“The economics of damage waivers, especially a full loss damage waiver product, don’t work at $13.50 per day,” according to the American Car Rental Association (ACRA). “The rental company can’t earn enough charging only $13.50 per day to cover repairs to vehicles damaged by customers with valid damage waivers.”
California, Nevada, and New York are now the only states to cap damage waiver prices.