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7 This act modifies the Insurance Code to authorize a vehicle rental company to charge an
8 administrative fee for damage sustained to a rental vehicle. This act allows the collection
9 of an administrative fee that vehicle rental companies may charge to offset the expenses
10 incurred for collecting and resolving a damage claim on a rental vehicle. This act adds
11 the administrative fee and any diminution in value to the definition of damage to a rental
12 vehicle. This act sets a sliding scale for administrative fees beginning at $50 for estimated
13 damage to the rental vehicle of $250 or less and going up to $250 for estimated damage
14 exceeding $2,501.
15 This act affects sections of Utah Code Annotated 1953 as follows:
17 31A-22-311, as last amended by Chapter 316, Laws of Utah 1994
19 31A-22-312.5, Utah Code Annotated 1953
20 Be it enacted by the Legislature of the state of Utah:
21 Section 1. Section 31A-22-311 is amended to read:
22 31A-22-311. Definitions.
23 As used in Sections 31A-22-312 , 31A-22-312.5 , and 31A-22-314 :
24 (1) "Administrative fee" means a fee collected by a vehicle rental company under
25 Section 31A-22-312.5 to offset expenses incurred in administrating the collection and
26 resolution of a claim.
29 (a) his spouse if a licensed driver satisfying the rental company's minimum age
31 (b) his employer or coworker if engaged in business activity with the renter and if they
32 are licensed drivers satisfying the rental company's minimum age requirement;
33 (c) any person who operates the vehicle during an emergency situation;
34 (d) any person who operates the vehicle while parking the vehicle at a commercial
35 establishment; or
36 (e) any person expressly listed by the rental company on the rental agreement as an
37 authorized driver.
40 (a) loss of use [
41 (b) any costs and expenses incident to the damage or loss[
42 (c) an administrative fee associated with the loss, as calculated under Section
43 31A-22-312.5 ; and
44 (d) any diminution of value of the rental vehicle as a result of the damage or loss.
46 conditions governing the use of a private passenger motor vehicle provided by a rental
49 providing private passenger motor vehicles to the public.
51 passenger motor vehicle from a rental company under the terms of a rental agreement.
52 Section 2. Section 31A-22-312.5 is enacted to read:
53 31A-22-312.5. Limitation of administrative fee.
54 A vehicle rental company may charge an administrative fee which may not exceed:
55 (1) $50 when the estimated damage to the rental vehicle is $250 or less;
56 (2) $75 when the estimated damage to the rental vehicle is between $251 and $500;
57 (3) $100 when the estimated damage to the rental vehicle is between $501 and $750;
58 (4) $150 when the estimated damage to the rental vehicle is between $751 and $1,500;
59 (5) $200 when the estimated damage to the rental vehicle is between $1,501 and
60 $2,500; and
61 (6) $250 when the estimated damage to the rental vehicle exceeds $2,501.
Legislative Review Note
as of 2-7-03 11:07 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.