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:

Terms Used In Indiana Code 24-4-9-16

  • authorized driver: means :

    Indiana Code 24-4-9-1

  • 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. See Indiana Code 24-4-9-3
  • 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. See Indiana Code 24-4-9-7
  • renter: means a person who obtains the use of a vehicle from a rental company under a rental agreement. See Indiana Code 24-4-9-6
  • vehicle: means a private passenger motor vehicle primarily designed for transporting passengers. See Indiana Code 24-4-9-8
(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.

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