2016 Indiana Code TITLE 24. TRADE REGULATION ARTICLE 4. REGULATED BUSINESSES CHAPTER 9. MOTOR VEHICLE RENTAL COMPANIES
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IC 24-4-9
Chapter 9. Motor Vehicle Rental Companies
IC 24-4-9-0.1
Application of chapter to certain rental agreements
Sec. 0.1. The addition of this chapter by P.L.232-1989 does not
apply to rental agreements entered into before July 1, 1989.
As added by P.L.220-2011, SEC.388.
IC 24-4-9-1
"Authorized driver"
Sec. 1. As used in this chapter, with respect to a vehicle that is the
subject 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 requirement
for authorized drivers;
(3) an employer or coworker of the renter, if the employer or
coworker:
(A) is engaged in a business activity with the renter;
(B) is a licensed driver; and
(C) satisfies the rental company's minimum age requirement
for 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 the
rental 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 or
a part of a rental agreement, under which a rental company agrees to
waive any or all claims against the renter for any physical or
mechanical damage, as defined in section 13 of this chapter, to the
rented 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 damage
or loss to a vehicle, including loss of use of the vehicle and the cost
and expenses incident to any damage or loss.
As added by P.L.232-1989, SEC.1.
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IC 24-4-9-4
"Person"
Sec. 4. As used in this chapter, "person" means an individual, a
firm, a partnership, limited liability company, an association, a joint
stock company, a corporation, a trust, an estate, or any combination
of 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 written
contract:
(1) that authorizes a renter to use a vehicle made available by a
rental company for a period of thirty (30) days or less;
(2) under which a charge for use of the vehicle is made at a
periodic rate; and
(3) under which title to the vehicle is not transferred to the
renter.
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 who
obtains the use of a vehicle from a rental company under a rental
agreement.
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 any
person engaged in the business of regularly making available, or
arranging for another person to use, a vehicle under a rental
agreement.
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 private
passenger motor vehicle primarily designed for transporting
passengers. The term includes passenger vans and minivans that are
primarily designed for transporting passengers.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-8.5
"Vehicle license cost recovery fee"
Sec. 8.5. As used in this chapter, "vehicle license cost recovery
fee" means a charge imposed by a rental company to recover costs
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incurred by the rental company in licensing, titling, registering,
plating, and inspecting a vehicle.
As added by P.L.198-2016, SEC.653.
IC 24-4-9-9
Rental agreement application of damage waivers
Sec. 9. A rental company may provide in a rental agreement that
a damage waiver does not apply under any of the following
circumstances:
(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 operation
of the vehicle while intoxicated or under the influence of an
illegal drug.
(3) The damage is caused while the authorized driver is engaged
in a speed contest, race, road rally, test, or driver training
activity.
(4) The renter provided the rental company with fraudulent or
false information and the rental company would not have rented
the vehicle if the rental company had received true information.
(5) The damage arises out of vandalism or theft of the rented
vehicle caused by the negligence of the authorized driver,
except that the possession by the authorized driver, at the time
of the vandalism or theft, of the ignition key furnished by the
rental company shall be prima facie evidence that the
authorized driver was not negligent.
(6) The damage arises out of the use of the vehicle in
connection with conduct that could be properly charged as a
felony.
(7) The damage arises out of the use of the vehicle to carry
persons or property for hire or to tow or push anything.
(8) The damage arises out of the use of the vehicle outside the
United States, unless the use is specifically authorized by the
rental agreement.
(9) The damage arises out of the use of the vehicle by an
unauthorized 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 separate
charge, a damage waiver that is set forth in the rental agreement and
that relieves an authorized driver of any liability for damage that the
authorized driver might otherwise incur.
(b) Each rental agreement that contains a damage waiver must
disclose the following information in plain language printed in type
at least as large as 10 point type:
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(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 on
the waiver.
(5) That the renter or other authorized driver may already be
sufficiently covered for damage to the rental vehicle and should
examine the renter's or authorized driver's automobile insurance
policy to determine whether the policy provides coverage for
damage, loss, or loss of use to a rented vehicle, and the amount
of the deductible.
(6) That by entering into the rental agreement, the renter may be
liable for damage, loss, or loss of use to the rental vehicle.
(c) A rental company may not rent a vehicle to a renter until the
renter has acknowledged in writing that the renter understands the
information set forth in subsection (b). The acknowledgment must be
written in plain language on the rental agreement and must be
initialed 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 24-4-9-11.1
Vehicle license cost recovery fee; estimates; adjustment
Sec. 11.1. (a) A rental company may include in a rental agreement
separately stated surcharges, fees, and charges, including vehicle
license cost recovery fees, airport access fees, airport concession
fees, and any applicable taxes.
(b) A vehicle license cost recovery fee that is included as a
separately stated fee in a rental agreement must represent the rental
company's good faith estimate of the rental company's daily charge
necessary to recover the rental company's actual total annual vehicle
licensing, titling, registration, plating, and inspection costs.
(c) If a rental company collects, in a calendar year, vehicle license
cost recovery fees in an amount that exceeds the rental company's
actual total vehicle licensing, titling, registration, plating, and
inspection costs for the calendar year, the rental company shall do
the following:
(1) Retain the excess amount.
(2) Reduce the vehicle license cost recovery fee for the
following year by a corresponding, proportionate amount.
(d) This section may not be construed to prevent a rental company
from adjusting its vehicle license cost recovery fee during a calendar
year.
As added by P.L.198-2016, SEC.654.
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IC 24-4-9-12
Rental company's action for damages
Sec. 12. A rental company may bring an action to recover for
damage based on a rental agreement. If the action is against a renter
who is a resident of Indiana, the action shall be filed in the county of
the 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 renter
will be responsible for no more than all of the following:
(1) Physical damage to the rented vehicle up to its fair market
value regardless of the cause of damage.
(2) Mechanical damage to the rental vehicle, up to and
including 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 or
authorized driver's deliberate act.
(3) Loss due to theft of the rental vehicle up to its fair market
value. However, the renter shall be presumed to have no
liability for any loss due to theft if the renter or authorized
driver:
(A) has possession of the ignition key furnished by the rental
company or establishes that the ignition key furnished by the
rental company was not in the vehicle at the time of the
theft; and
(B) files an official report of the theft with the police or
other law enforcement agency within twenty-four (24) hours
of learning of the theft and reasonably cooperates with the
rental company, police, and other law enforcement agency
in providing information concerning the theft.
The presumption set forth in this subdivision is a presumption
affecting the burden of proof, which the rental company may
rebut by establishing that a renter or other authorized driver
committed or aided and abetted in the commission of the theft.
(4) Physical damage to the rented vehicle up to its fair market
value resulting from vandalism occurring after, or in connection
with, the theft of the rented vehicle. However, the renter is
presumed to have no liability for any loss due to vandalism if
the renter or authorized driver:
(A) has possession of the ignition key furnished by the rental
company or establishes that the ignition key furnished by the
rental company was not in the vehicle at the time of the
vandalism; and
(B) files an official report of the vandalism with the police
or other law enforcement agency within twenty-four (24)
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hours of learning of the vandalism and reasonably
cooperates with the rental company, police, and other law
enforcement agency in providing information concerning the
vandalism.
The presumption set forth in this subdivision is a presumption
affecting the burden of proof, which the rental company may
rebut by establishing that a renter or other authorized driver
committed or aided and abetted in the commission of the
vandalism.
(5) Physical damage to the rented vehicle and loss of use of the
rented vehicle up to its fair market value resulting from
vandalism unrelated to the theft of the rented vehicle.
(6) Loss of use of the rented vehicle, if the renter is liable for
damage.
(7) Actual charges for towing, storage, and impoundment fees
paid by the rental company, if the renter is liable for damage.
(8) Reasonable attorney's fees related to the enforcement of the
rental agreement.
(9) An administrative charge.
(10) The cost of appraisal and 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; P.L.126-2015, SEC.1.
IC 24-4-9-14
Damage to rented vehicle; rental company's loss of use of damaged
vehicle; administrative charges
Sec. 14. (a) The total amount of the renter's liability to the rental
company resulting from damage to the rented vehicle may not exceed
the sum of the following:
(1) The estimated cost of replacement parts that the rental
company would have to pay to replace damaged vehicle parts,
less all discounts and price reductions or adjustments that will
be received by the rental company.
(2) The estimated cost of labor to replace damaged vehicle
parts, which may not exceed the product of:
(A) the rate for labor usually paid by the rental company to
replace vehicle parts of the type that were damaged; and
(B) the estimated time for replacement;
less all discounts and price reductions or adjustments that will
be 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 the
rental company to repair vehicle parts of the type that were
damaged and the estimated time for repair.
(B) The sum of the estimated labor and parts costs
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determined under subdivisions (1) and (2) to replace the
same vehicle parts.
All discounts and price reductions or adjustments that will be
received by the rental company must be taken into account in
determining the figure under this subdivision.
(4) Except as otherwise provided for, the loss of the use of the
rented vehicle, which may not exceed the product of:
(A) the rental rate stated in the rental agreement for the
particular vehicle rented, excluding optional charges; and
(B) the total of the estimated time for replacement and
estimated time for repair.
(5) Actual charges for towing, storage, and impound fees paid
by the rental company.
(b) Under any circumstances described in this chapter, liability for
the rental company's loss of use of the rented vehicle may not exceed
the product of:
(1) the rental rate stated in the rental agreement for the
particular vehicle rented, excluding all optional charges; and
(2) eighty percent (80%) of the period from the date of the
accident to the date the vehicle is ready to be returned to rental
service.
However, a renter is not liable to a rental company for the loss of use
of a damaged vehicle unless the rental company uses its best efforts
to effect repairs and return the vehicle to rental service.
(c) The administrative charge described in section 13(9) of this
chapter may not exceed:
(1) fifty dollars ($50) if the total estimated cost for parts and
labor is less than five hundred dollars ($500);
(2) one hundred dollars ($100) if the total estimated cost for
parts and labor is at least five hundred dollars ($500) and less
than one thousand five hundred dollars ($1,500); or
(3) one hundred fifty dollars ($150) if the total estimated cost
for parts and labor is at least one thousand five hundred dollars
($1,500).
As added by P.L.232-1989, SEC.1. Amended by P.L.70-2003, SEC.2;
P.L.109-2015, SEC.44; P.L.126-2015, SEC.2.
IC 24-4-9-15
Renter's maximum total liability; multiple recovery of single item
of damages
Sec. 15. (a) The total amount of the liability of the renter or other
authorized driver to the rental company for damage occurring during
the rental period may not exceed the amount of the renter's liability
under section 14 of this chapter.
(b) A rental company may not recover from the renter or other
authorized driver an amount exceeding the renter's liability under
section 14 of this chapter.
(c) A rental company may not recover from the renter or other
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authorized driver for any item described in section 13 of this chapter
to the extent that the rental company obtains recovery for that item
from another person.
As added by P.L.232-1989, SEC.1.
IC 24-4-9-16
Damage deposits or advances; payment for damage; liability
Sec. 16. (a) A rental company may not require a deposit or
advance charge against the credit card of a renter, in any form, for
damage to a rental vehicle that is in the care, custody, or control of
the renter or other authorized driver.
(b) If a renter's insurance deductible cannot be ascertained, a
rental company may:
(1) at the time that care, custody, or control of a rental vehicle
is restored to the rental company; and
(2) in an amount that may not exceed five hundred dollars
($500);
require payment by the renter for damage to the rental vehicle.
(c) If a renter's insurance deductible can be ascertained, the rental
company may charge the renter an amount that may not exceed the
renter's insurance deductible for damage to the rental vehicle.
(d) After the cost of the damage and liability for the damage
described in subsections (b) and (c) is agreed to between the rental
company and renter or is determined under law, the rental company:
(1) may require payment by the renter of any cost of the damage
that exceeds the amount paid by the renter; and
(2) shall refund to the renter any overpayment received from the
renter;
under subsection (b) or (c).
As added by P.L.232-1989, SEC.1. Amended by P.L.126-2015,
SEC.3.
IC 24-4-9-17
Rental rates, mileage charges, and fees; disclosures and prohibited
practices
Sec. 17. A rental company of a vehicle:
(1) may not offer, display, quote, or advertise and charge in a
rental agreement a periodic rate that does not include the entire
amount to be charged, except for taxes, airport fees, and
mileage, if any, that a renter must pay to rent the vehicle for the
period of time to which the rate applies;
(2) shall clearly and conspicuously disclose in any visual or oral
advertisement or quotation transmitting computer system in
which the rental company presents its rate, the terms of any
mileage conditions relating to the advertised or quoted rate,
including but not limited to, to the extent applicable, the amount
of mileage, the number of miles for which no charges will be
imposed, and a description of geographic driving limitations
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within the United States;
(3) may not charge, in addition to the rental rate, taxes, airport
fees, and mileage charge, if any, any fee that must be paid by
the renter as a condition of renting the vehicle, such as, but not
limited to, required fuel surcharges, or any fee for transporting
the renter to the location where the rented vehicle will be
delivered to the renter; and
(4) shall separately disclose, charge, and remit to an airport any
fee that is charged to the customer and is required to be fully
remitted to an airport's management entity, and such fee shall be
considered part of and included in the definition of gross
concession revenue reported to the airport’s management
authority.
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 rental
company may charge for the rental of a vehicle, in addition to the
rental rate, taxes, airport fees, and any mileage charge, an additional
charge for an item or service provided during the rental of the vehicle
if the renter can avoid incurring that additional charge by choosing
not to obtain the item or utilize the service. Items and services for
which the rental company may impose an additional charge under
this section include the following:
(1) Optional insurance or accessories requested by the renter.
(2) Service charges assessed when the insured returns the
vehicle to a location other than the location where the vehicle
was rented.
(3) A charge for refueling a vehicle that is returned with less
fuel in its tank than when the rental period began.
(4) A damage waiver that conforms to the provisions of this
chapter.
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 is
unenforceable 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 for
recovery of damages and appropriate equitable relief for a violation
of this chapter. The prevailing party may be awarded reasonable
attorney's fees.
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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 and
unenforceable.
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 damage
waiver 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 of
maximum charge for damage waiver
Sec. 23. (a) If a rental company enters into at least one (1) rental
agreement containing a damage waiver in Indiana during a calendar
year, the rental company shall compile and maintain the following
statistics concerning all the rental agreements the rental company
enters into in Indiana during that calendar year:
(1) The total expenses incurred by the rental company as a
result of damage to vehicles that is caused while the vehicles
are 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 rental
agreements, multiplied by the total number of days of the
calendar year during which the vehicles are subject to the rental
agreements.
(b) The expenses on which a rental company must compile
statistics under subsection (a)(1) are the following:
(1) The cost that the rental company pays to replace damaged
vehicle parts, less all discounts and price reductions or
adjustments received by the rental company.
(2) The cost of labor paid by the rental company to replace
damaged vehicle parts.
(3) The cost of labor paid by the rental company to repair
damaged vehicle parts.
(4) The loss of use of the damaged vehicles, which must be
determined according to the following formula:
STEP ONE: For each damaged vehicle, multiply the time
necessary for the repair and replacement of damaged parts
by eighty percent (80%).
STEP TWO: For each damaged vehicle, multiply the product
of STEP ONE by the rental rate set forth in the rental
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agreement to which the vehicle was subject when damaged.
STEP THREE: Total the figures determined under STEP
TWO for all of the damaged vehicles.
(5) Actual charges for towing, storage, and impound fees paid
by the rental company.
(c) The director of the division of consumer protection appointed
under IC 4-6-9-2 may request that rental companies provide the
director with statistics compiled and maintained under subsection (a).
(d) Upon receiving a request under subsection (c), a rental
company shall provide the director of the division of consumer
protection 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 this
chapter commits a deceptive act which is actionable under
IC 24-5-0.5 and subject to the penalties of IC 24-5-0.5.
As added by P.L.232-1989, SEC.1.
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