Introduced on June 8, 2023, the bill seeks to amend Titles 6 and 21 of the Delaware Code, specifically targeting rental car companies and peer-to-peer car-sharing programs. Sponsored by Representative Lambert, along with Senator Poore and Representative Longhurst, this bill would remove the ability for those businesses to charge Delaware residents fees related to the loss of use of rental vehicles or shared vehicles.
Currently, if you are involved in an accident without having purchased an over-the-counter collision damage waiver, the rental company has the right to impose charges for vehicle repair expenses. Additionally, they may also apply Loss of Use fees to recover the revenue lost during the period the car remains in the repair shop. This compensates the rental company for the time during which the vehicle is unavailable for renting purposes.
House Bill 209, titled “An Act to Amend Titles 6 and 21 of the Delaware Code Relating to Rental Car Companies and Peer-to-Peer Car Sharing,” focuses on restricting rental companies, shared vehicle owners, and peer-to-peer car sharing programs from recovering damages and imposing administrative fees associated with the loss of use of a rental vehicle or shared vehicle. If passed into law, the bill would explicitly abrogate the common law of loss of use, ensuring that it no longer applies to these entities. Furthermore, it supersedes any conflicting statutes, establishing its supremacy in matters concerning loss of use charges.
As of June 13, 2023, the bill has cleared the committee and has been placed on the Ready List. The next stage in the legislative process involves a full vote by the Delaware General Assembly. If the bill is approved, it will take effect on August 1 following its enactment into law.
