Awaiting approval from Illinois Gov. Pat Quinn, the IL CDW bill was recently passed by both houses in Illinois. This legislation would raise the maximum rate that rental companies can charge customers for CDW (collision damage waiver) from $12.50 to $13.50 per day.

According to the bill, a rental company in Illinois wouldn’t be able to charge more than $13.50 per day for a collision damage waiver starting Jan.1, 2014.

The American Car Rental Association (ACRA) supports the passage of this bill. 

“The increased cost per day for collision damage waiver would help the car rental company offset the expenses of repairing cars damaged by those customers who selected the waiver at the time of rental,” said Sharon Faulkner, the executive director of ACRA and a previous owner/operator of both Thrifty and Dollar RAC franchises.

In addition to Illinois, California, New York and Nevada limit the daily fee that a rental car company can charge for CDW. For California, the CDW rate depends on the MSRP and age of vehicle, according to Cal. Civil Code § 1936 (h-i). Under the Nev. Rev. Stat. Ann. § 482.31565, Nevada applied a $22 per day limit for CDW in 2007, which can be adjusted annually based on increases in the Consumer Price Index (CPI). And in New York, rental companies charge $9 per day for a vehicle with MSRP of $30,000 or less and $12 per day for a vehicle with a MSRP greater than $30,000, according to N.Y. Gen. Bus. Law § 396-z(1)(j)(2)(a).

ACRA encourages rental car operators in Illinois to contact Gov. Quinn’s office and ask him to sign the bill into law.