New Law Removes Damage Waiver Caps in Illinois
Illinois Gov. Bruce Rauner approved the bill that removes the damage waiver cap on car rental transactions in the state.
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.
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