31A-22-312 - Liability for collision damage -- No security required -- No waiver -- Section inapplicable to rental companies disclosing charges.
31A-22-312. Liability for collision damage -- No security required -- No waiver --Section inapplicable to rental companies disclosing charges.
(1) No rental company may, in rental agreements of 30 continuous days or less, hold anyauthorized driver liable for any damage except when:
(a) the damage is caused intentionally by an authorized driver or as a result of his willfuland wanton misconduct;
(b) the damage arises out of the authorized driver's operation of the vehicle while illegallyintoxicated or under the influence of any illegal drug as defined or determined under the law ofthe state where the damage occurred;
(c) the damage is caused while the authorized driver is engaged in any speed contest;
(d) the rental transaction is based on information supplied by the renter with the intent todefraud the rental company;
(e) the damage arises out of the use of the vehicle while committing or otherwise engagedin a criminal act in which the use of the motor vehicle is substantially related to the nature of thecriminal activity;
(f) the damage arises out of the use of the motor vehicle to carry persons or property forhire; or
(g) the damage arises out of the use of the motor vehicle outside of the United States orCanada unless the use is specifically authorized by the rental agreement.
(2) No security or deposit for damage in any form may be required or requested by therental company during the rental period, or pending the resolution of any dispute.
(3) No waiver may be offered to provide coverage for any of the exceptions listed in thissection.
(4) This section does not apply to any rental company:
(a) whose advertising in this state clearly discloses all charges and costs incidental to thebasic daily rental rate; and
(b) that provides written notice to renters clearly printed on the rental agreement andprominently displayed at its place of business, that the renter's own motor vehicle insurance or hiscredit card agreement may cover any damage or loss to the rental vehicle.
Enacted by Chapter 251, 1989 General Session