Iowa Code 516D.5 – Recovery for damage or loss
Current as of: 2023 | Check for updates
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Terms Used In Iowa Code 516D.5
- Authorized driver: means any of the following:a. See Iowa Code 516D.3
- Customer: means a person entering into a rental agreement and obtaining the use of a rental vehicle from a rental company under the terms of the rental agreement. See Iowa Code 516D.3
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Estimated time for repair: means a good faith estimate of the reasonable number of hours of labor, or fraction of an hour, needed to repair a damaged vehicle or damaged vehicle parts. See Iowa Code 516D.3
- Estimated time for replacement: means the number of hours of labor, or fraction of an hour, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as crash books. See Iowa Code 516D.3
- Rental company: means a person in the business of providing rental vehicles to customers. See Iowa Code 516D.3
- Rental vehicle: means a private passenger type vehicle which, upon the execution of a rental agreement, is made available to a customer for the customer's use or other authorized driver's use. See Iowa Code 516D.3
A claim against an authorized driver resulting from damage to a rental vehicle, loss due to theft of a rental vehicle, or damages resulting from the loss of use of a rental vehicle, must be reasonably and rationally related to the actual loss incurred. A rental company shall mitigate damages where possible and shall not assert or collect any claim for physical damage which exceeds the actual cost of the repair, including all discounts or price reductions. Administrative fees shall be limited to the reasonable administrative costs associated with processing the damage claim. A claim made for loss of use shall not exceed the daily rental rate stated in the customer‘s contract, excluding optional charges, multiplied by the total of the estimated time for replacement and the estimated time for repair, divided by eight.