CHAPTER 9. MOTOR VEHICLE RENTAL COMPANIES
IC 24-4-9
Chapter 9. Motor Vehicle Rental Companies
IC 24-4-9-1
"Authorized driver"
Sec. 1. As used in this chapter, with respect to a vehicle that is thesubject of a rental agreement, "authorized driver" means:
(1) the renter of the vehicle;
(2) the spouse of the renter, if the spouse:
(A) is a licensed driver; and
(B) satisfies the rental company's minimum age requirementfor authorized drivers;
(3) an employer or coworker of the renter, if the employer orcoworker:
(A) is engaged in a business activity with the renter;
(B) is a licensed driver; and
(C) satisfies the rental company's minimum age requirementfor authorized drivers;
(4) a person who operates the vehicle:
(A) while parking the vehicle at a commercial establishment;or
(B) in an emergency; or
(5) a person expressly identified as an authorized driver in therental agreement.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-2
"Damage waiver"; "waiver"
Sec. 2. As used in this chapter, "damage waiver" or "waiver"means any contract or contract provision, whether separate from ora part of a rental agreement, under which a rental company agrees towaive any or all claims against the renter for any physical ormechanical damage, as defined in section 13 of this chapter, to therented vehicle during the term of the rental agreement.
As added by P.L.232-1989, SEC.1. Amended by P.L.19-2005, SEC.1.
IC 24-4-9-3
"Damage"
Sec. 3. As used in this chapter, "damage" means physical damageor loss to a vehicle, including loss of use of the vehicle and the costand expenses incident to any damage or loss.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-4
"Person"
Sec. 4. As used in this chapter, "person" means an individual, afirm, a partnership, limited liability company, an association, a jointstock company, a corporation, a trust, an estate, or any combinationof individuals.
As added by P.L.232-1989, SEC.1. Amended by P.L.8-1993,
SEC.356.
IC 24-4-9-5
"Rental agreement"
Sec. 5. As used in this chapter, "rental agreement" means a writtencontract:
(1) that authorizes a renter to use a vehicle made available by arental company for a period of thirty (30) days or less;
(2) under which a charge for use of the vehicle is made at aperiodic rate; and
(3) under which title to the vehicle is not transferred to therenter.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-6
"Renter"
Sec. 6. As used in this chapter, "renter" means a person whoobtains the use of a vehicle from a rental company under a rentalagreement.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-7
"Rental company"
Sec. 7. As used in this chapter, "rental company" means anyperson engaged in the business of regularly making available, orarranging for another person to use, a vehicle under a rentalagreement.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-8
"Vehicle"
Sec. 8. As used in this chapter, "vehicle" means a privatepassenger motor vehicle primarily designed for transportingpassengers. The term includes passenger vans and minivans that areprimarily designed for transporting passengers.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-9
Rental agreement application of damage waivers
Sec. 9. A rental company may provide in a rental agreement thata damage waiver does not apply under any of the followingcircumstances:
(1) The damage is caused by the authorized driver:
(A) intentionally; or
(B) through willful or wanton misconduct.
(2) The damage arises out of the authorized driver's operationof the vehicle while intoxicated or under the influence of anillegal drug.
(3) The damage is caused while the authorized driver is engagedin a speed contest, race, road rally, test, or driver training
activity.
(4) The renter provided the rental company with fraudulent orfalse information and the rental company would not have rentedthe vehicle if the rental company had received true information.
(5) The damage arises out of vandalism or theft of the rentedvehicle caused by the negligence of the authorized driver,except that the possession by the authorized driver, at the timeof the vandalism or theft, of the ignition key furnished by therental company shall be prima facie evidence that theauthorized driver was not negligent.
(6) The damage arises out of the use of the vehicle inconnection with conduct that could be properly charged as afelony.
(7) The damage arises out of the use of the vehicle to carrypersons or property for hire or to tow or push anything.
(8) The damage arises out of the use of the vehicle outside theUnited States, unless the use is specifically authorized by therental agreement.
(9) The damage arises out of the use of the vehicle by anunauthorized driver.
As added by P.L.232-1989, SEC.1. Amended by P.L.19-2005, SEC.2.
IC 24-4-9-10
Sale of damage waivers; disclosures; acknowledgment by renter
Sec. 10. (a) A rental company may offer and sell, for a separatecharge, a damage waiver that is set forth in the rental agreement andthat relieves an authorized driver of any liability for damage that theauthorized driver might otherwise incur.
(b) Each rental agreement that contains a damage waiver mustdisclose the following information in plain language printed in typeat least as large as 10 point type:
(1) That the waiver is optional.
(2) That the waiver entails an additional charge.
(3) The actual charge per day for the waiver.
(4) All restrictions, conditions, and provisions in or endorsed onthe waiver.
(5) That the renter or other authorized driver may already besufficiently covered for damage to the rental vehicle and shouldexamine the renter's or authorized driver's automobile insurancepolicy to determine whether the policy provides coverage fordamage, loss, or loss of use to a rented vehicle, and the amountof the deductible.
(6) That by entering into the rental agreement, the renter may beliable for damage, loss, or loss of use to the rental vehicle.
(c) A rental company may not rent a vehicle to a renter until therenter has acknowledged in writing that the renter understands theinformation set forth in subsection (b). The acknowledgment must bewritten in plain language on the rental agreement and must beinitialed by the renter.
As added by P.L.232-1989, SEC.1. Amended by P.L.19-2005, SEC.3.
IC 24-4-9-11
Repealed
(Repealed by P.L.171-1997, SEC.2.)
IC 24-4-9-12
Rental company's action for damages
Sec. 12. A rental company may bring an action to recover fordamage based on a rental agreement. If the action is against a renterwho is a resident of Indiana, the action shall be filed in the county ofthe renter's primary residence.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-13
Limitation of renter's liability generally
Sec. 13. A rental company and renter may agree that the renterwill be responsible for no more than all of the following:
(1) Physical damage to the rented vehicle up to its fair marketvalue regardless of the cause of damage.
(2) Mechanical damage to the rental vehicle, up to andincluding the rental vehicle's fair market value, resulting from:
(A) a collision;
(B) an impact; or
(C) another incident that is caused by the renter's orauthorized driver's deliberate act.
(3) Loss due to theft of the rental vehicle up to its fair marketvalue. However, the renter shall be presumed to have noliability for any loss due to theft if the renter or authorizeddriver:
(A) has possession of the ignition key furnished by the rentalcompany or establishes that the ignition key furnished by therental company was not in the vehicle at the time of thetheft; and
(B) files an official report of the theft with the police orother law enforcement agency within twenty-four (24) hoursof learning of the theft and reasonably cooperates with therental company, police, and other law enforcement agencyin providing information concerning the theft.
The presumption set forth in this subdivision is a presumptionaffecting the burden of proof, which the rental company mayrebut by establishing that a renter or other authorized drivercommitted or aided and abetted in the commission of the theft.
(4) Physical damage to the rented vehicle up to its fair marketvalue resulting from vandalism occurring after, or in connectionwith, the theft of the rented vehicle. However, the renter ispresumed to have no liability for any loss due to vandalism ifthe renter or authorized driver:
(A) has possession of the ignition key furnished by the rentalcompany or establishes that the ignition key furnished by therental company was not in the vehicle at the time of thevandalism; and (B) files an official report of the vandalism with the policeor other law enforcement agency within twenty-four (24)hours of learning of the vandalism and reasonablycooperates with the rental company, police, and other lawenforcement agency in providing information concerning thevandalism.
The presumption set forth in this subdivision is a presumptionaffecting the burden of proof, which the rental company mayrebut by establishing that a renter or other authorized drivercommitted or aided and abetted in the commission of thevandalism.
(5) Physical damage to the rented vehicle and loss of use of therented vehicle up to its fair market value resulting fromvandalism unrelated to the theft of the rented vehicle.
(6) Loss of use of the rented vehicle, if the renter is liable fordamage.
(7) Actual charges for towing, storage, and impoundment feespaid by the rental company, if the renter is liable for damage.
(8) Reasonable attorney's fees related to the enforcement of therental agreement.
(9) An administrative charge, including the cost of appraisaland all other costs and expenses incident to the damage, loss,loss of use, repair, or replacement of the rented vehicle.
As added by P.L.232-1989, SEC.1. Amended by P.L.70-2003, SEC.1;P.L.19-2005, SEC.4.
IC 24-4-9-14
Damage to rented vehicle; rental company's loss of use of damagedvehicle; administrative charges
Sec. 14. (a) The total amount of the renter's liability to the rentalcompany resulting from damage to the rented vehicle may not exceedthe sum of the following:
(1) The estimated cost of replacement parts that the rentalcompany would have to pay to replace damaged vehicle parts,less all discounts and price reductions or adjustments that willbe received by the rental company.
(2) The estimated cost of labor to replace damaged vehicleparts, which may not exceed the product of:
(A) the rate for labor usually paid by the rental company toreplace vehicle parts of the type that were damaged; and
(B) the estimated time for replacement;
less all discounts and price reductions or adjustments that willbe received by the rental company.
(3) The estimated cost of labor to repair damaged vehicle parts,which may not exceed the lesser of the following:
(A) The product of the rate for labor usually paid by therental company to repair vehicle parts of the type that weredamaged and the estimated time for repair.
(B) The sum of the estimated labor and parts costsdetermined under subdivisions (1) and (2) to replace the
same vehicle parts.
All discounts and price reductions or adjustments that will bereceived by the rental company must be taken into account indetermining the figure under this subdivision.
(4) Except as otherwise provided for, the loss of the use of therented vehicle, which may not exceed the product of:
(A) the rental rate stated in the rental agreement for theparticular vehicle rented, excluding optional charges; and
(B) the total of the estimated time for replacement andestimated time for repair.
(5) Actual charges for towing, storage, and impound fees paidby the rental company.
(b) Under any circumstances described in this chapter, liability forthe rental company's loss of use of the rented vehicle may not exceedthe product of:
(1) the rental rate stated in the rental agreement for theparticular vehicle rented, excluding all optional charges; and
(2) eighty percent (80%) of the period from the date of theaccident to the date the vehicle is ready to be returned to rentalservice.
However, a renter is not liable to a rental company for the loss of useof a damaged vehicle unless the renter uses its best efforts to effectrepairs and return the vehicle to rental service.
(c) The administrative charge described in section 13(9) of thischapter may not exceed:
(1) ten percent (10%) of the total estimated cost for parts andlabor, if the damage is one thousand five hundred dollars($1,500) or less; or
(2) the amount specified in subdivision (1) plus seven andone-half percent (7 1/2%) of the amount in excess of onethousand five hundred dollars ($1,500), if the total estimatedcost for parts and labor exceeds one thousand five hundreddollars ($1,500).
As added by P.L.232-1989, SEC.1. Amended by P.L.70-2003, SEC.2.
IC 24-4-9-15
Renter's maximum total liability; multiple recovery of single itemof damages
Sec. 15. (a) The total amount of the liability of the renter or otherauthorized driver to the rental company for damage occurring duringthe rental period may not exceed the amount of the renter's liabilityunder section 14 of this chapter.
(b) A rental company may not recover from the renter or otherauthorized driver an amount exceeding the renter's liability undersection 14 of this chapter.
(c) A rental company may not recover from the renter or otherauthorized driver for any item described in section 13 of this chapterto the extent that the rental company obtains recovery for that itemfrom another person.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-16
Damage deposits or advances; damages to vehicle not payable untilliquidated
Sec. 16. (a) A rental company may not require a deposit oradvance charge against the credit card of a renter, in any form, fordamage to a rental vehicle that is in the care, custody, or control ofthe renter or other authorized driver.
(b) A rental company may not require any payment for damage tothe rental vehicle until after the cost of the damage and liability forthe damage is agreed to between the rental company and renter or isdetermined under law.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-17
Rental rates, mileage charges, and fees; disclosures and prohibitedpractices
Sec. 17. A rental company of a vehicle:
(1) may not offer, display, quote, or advertise and charge in arental agreement a periodic rate that does not include the entireamount to be charged, except for taxes, airport fees, andmileage, if any, that a renter must pay to rent the vehicle for theperiod of time to which the rate applies;
(2) shall clearly and conspicuously disclose in any visual or oraladvertisement or quotation transmitting computer system inwhich the rental company presents its rate, the terms of anymileage conditions relating to the advertised or quoted rate,including but not limited to, to the extent applicable, the amountof mileage, the number of miles for which no charges will beimposed, and a description of geographic driving limitationswithin the United States;
(3) may not charge, in addition to the rental rate, taxes, airportfees, and mileage charge, if any, any fee that must be paid bythe renter as a condition of renting the vehicle, such as, but notlimited to, required fuel surcharges, or any fee for transportingthe renter to the location where the rented vehicle will bedelivered to the renter; and
(4) shall separately disclose, charge, and remit to an airport anyfee that is charged to the customer and is required to be fullyremitted to an airport's management entity, and such fee shall beconsidered part of and included in the definition of grossconcession revenue reported to the airport's managementauthority.
As added by P.L.232-1989, SEC.1. Amended by P.L.57-1999, SEC.1.
IC 24-4-9-18
Additional charges for optional items
Sec. 18. Notwithstanding section 17(3) of this chapter, a rentalcompany may charge for the rental of a vehicle, in addition to therental rate, taxes, airport fees, and any mileage charge, an additionalcharge for an item or service provided during the rental of the vehicle
if the renter can avoid incurring that additional charge by choosingnot to obtain the item or utilize the service. Items and services forwhich the rental company may impose an additional charge underthis section include the following:
(1) Optional insurance or accessories requested by the renter.
(2) Service charges assessed when the insured returns thevehicle to a location other than the location where the vehiclewas rented.
(3) A charge for refueling a vehicle that is returned with lessfuel in its tank than when the rental period began.
(4) A damage waiver that conforms to the provisions of thischapter.
As added by P.L.232-1989, SEC.1. Amended by P.L.57-1999, SEC.2;P.L.19-2005, SEC.5.
IC 24-4-9-19
Nonconforming rental agreements unenforceable
Sec. 19. A rental agreement entered into in Indiana isunenforceable if the agreement does not conform to this chapter.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-20
Renter's action for damages or equitable relief; attorney's fees
Sec. 20. A renter may bring an action against a rental company forrecovery of damages and appropriate equitable relief for a violationof this chapter. The prevailing party may be awarded reasonableattorney's fees.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-21
Waiver of chapter provisions void and unenforceable
Sec. 21. Any waiver of any provision of this chapter is void andunenforceable.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-22
Unfair, deceptive, or coercive acts by rental company
Sec. 22. A rental company may not engage in any unfair,deceptive, or coercive act to induce a renter to purchase a damagewaiver or any other optional good or service.
As added by P.L.232-1989, SEC.1. Amended by P.L.19-2005, SEC.6.
IC 24-4-9-23
Statistical reporting by rental companies; administration review ofmaximum charge for damage waiver
Sec. 23. (a) If a rental company enters into at least one (1) rentalagreement containing a damage waiver in Indiana during a calendaryear, the rental company shall compile and maintain the followingstatistics concerning all the rental agreements the rental companyenters into in Indiana during that calendar year: (1) The total expenses incurred by the rental company as aresult of damage to vehicles that is caused while the vehiclesare subject to the rental agreements.
(2) The total amount of the expenses referred to in subdivision(1) for which the rental company is indemnified.
(3) The total number of vehicles subject to the rentalagreements, multiplied by the total number of days of thecalendar year during which the vehicles are subject to the rentalagreements.
(b) The expenses on which a rental company must compilestatistics under subsection (a)(1) are the following:
(1) The cost that the rental company pays to replace damagedvehicle parts, less all discounts and price reductions oradjustments received by the rental company.
(2) The cost of labor paid by the rental company to replacedamaged vehicle parts.
(3) The cost of labor paid by the rental company to repairdamaged vehicle parts.
(4) The loss of use of the damaged vehicles, which must bedetermined according to the following formula:
STEP ONE: For each damaged vehicle, multiply the timenecessary for the repair and replacement of damaged partsby eighty percent (80%).
STEP TWO: For each damaged vehicle, multiply the productof STEP ONE by the rental rate set forth in the rentalagreement to which the vehicle was subject when damaged.
STEP THREE: Total the figures determined under STEPTWO for all of the damaged vehicles.
(5) Actual charges for towing, storage, and impound fees paidby the rental company.
(c) The director of the division of consumer protection appointedunder IC 4-6-9-2 may request that rental companies provide thedirector with statistics compiled and maintained under subsection (a).
(d) Upon receiving a request under subsection (c), a rentalcompany shall provide the director of the division of consumerprotection with the statistics that are requested by the director.
As added by P.L.232-1989, SEC.1. Amended by P.L.171-1997,SEC.1; P.L.19-2005, SEC.7.
IC 24-4-9-24
Remedies for rental company violations of chapter provisions
Sec. 24. A rental company who violates any provision of thischapter commits a deceptive act which is actionable underIC 24-5-0.5 and subject to the penalties of IC 24-5-0.5.
As added by P.L.232-1989, SEC.1.