516D.4 Damage or loss — collision damage waiver. 1. a. A rental company shall not hold, or attempt to hold, an authorized driver liable for physical damage to a rental vehicle, loss due to theft of a rental vehicle, or damages resultingfrom the loss of use of a rental vehicle, unless the rental company offers the customer acollision damage waiver under the terms and conditions described in subsection 2, or unlessone or more of the following applies: (1) The damage or loss is caused intentionally by an authorized driver or is a result of the authorized driver’s willful, abusive, reckless, or wanton misconduct. (2) The damage or loss arises out of the authorized driver’s operation of the rental vehicle while intoxicated or under the influence of a drug. (3) The damage or loss is caused while the authorized driver is engaged in a race, training activity, contest, or use of the rental vehicle for an illegal purpose. (4) The rental agreement is based on false or misleading information supplied by the customer or an authorized driver. (5) The damage or loss is caused by operating the rental vehicle other than on regularly maintained hard surface roadways, including private driveways and ied by the customer or an authorized driver. (5) The damage or loss is caused by operating the rental vehicle other than on regularly maintained hard surface roadways, including private driveways and parking lots. (6) The damage or loss arises out of the use of the rental vehicle to transport persons or property for hire or to push or tow anything. (7) The damage or loss occurs while the rental vehicle is operated by a driver other than an authorized driver. (8) The damage or loss arises out of the use of the rental vehicle outside the continental United States unless such use is specifically authorized by the rental agreement. (9) The damage or loss is attributable to theft which occurs with the prior knowledge or knowing participation of an authorized driver, or which is attributable to the authorized driverleaving the rental vehicle unattended with the keys in the rental vehicle. b. This section does not alter the liability of a customer or authorized driver for bodily injury or the death of another and for property damage other than to the rental vehicle inaccordance with the rental agreement. s not alter the liability of a customer or authorized driver for bodily injury or the death of another and for property damage other than to the rental vehicle inaccordance with the rental agreement. This section does not prohibit a rental companyfrom accepting or negotiating master contracts with companies or government entities inadvance of need whereby the companies or government entities specifically agree to assumeliability in exchange for rate concessions. This section does not prohibit a rental companyfrom entering into agreements with insurance companies to provide replacement vehicles toinsurance company customers whereby the insurance company agrees to assume the riskof loss. c. If the rental vehicle is not repaired, damages shall not exceed the fair market value of the vehicle, as determined in the customary market for that vehicle, less salvage or actual salevalue, plus additional license and tax fees incurred because of the sale, plus administrativefees. A claim shall not be made for loss of use if the rental vehicle is not repaired. 2. a. A rental company may offer a collision damage waiver under the following terms and conditions: (1) All restrictions, conditions, t be made for loss of use if the rental vehicle is not repaired. 2. a. A rental company may offer a collision damage waiver under the following terms and conditions: (1) All restrictions, conditions, and exclusions must be printed in the rental agreement, or on a separate sheet or document, in ten point type, or larger; or written in pen and inkor typewritten in or on the face of the rental agreement in a blank space provided for suchrestrictions, conditions, and exclusions. The rental agreement may provide that the collisiondamage waiver may be voided under the conditions set forth in subsection 1, paragraph 'a',subparagraphs (1) through (9). (2) The rental agreement, separate sheet, or document must clearly and conspicuously state both the daily and estimated total charge for the collision damage waiver. (3) (a) The rental agreement, separate sheet, or document given to the customer prior to entering into the rental agreement must display in ten point type, or larger, the followingnotice: NOTICE: This contract offers, for an additional charge, a collision damage waiver to cover all or part of your responsibilityfor damage to the rental vehicle. nt type, or larger, the followingnotice: NOTICE: This contract offers, for an additional charge, a collision damage waiver to cover all or part of your responsibilityfor damage to the rental vehicle. Sat Dec 23 00:50:10 2023 Iowa Code 2024, Section 516D.4 (22, 0) §516D.4, RENTAL OF MOTOR VEHICLES 2 Before deciding whether to purchase the collision damage waiver, you may wish to determine whether your own automobileinsurance affords you coverage for damage to the rental vehicle andthe amount of the deductible under your own insurance coverage.The purchase of this collision damage waiver is not mandatory andmay be declined. (b) The customer must separately acknowledge that the customer received the above notice, that the customer desires to purchase the collision damage waiver, and the terms ofthe collision damage waiver to which the customer agrees. (4) The car rental company shall not pay commissions to a rental counter agent or representative for selling collision damage waivers and is prohibited from consideringvolume of sales of collision damage waivers in an employee evaluation or determination ofpromotion. b. r agent or representative for selling collision damage waivers and is prohibited from consideringvolume of sales of collision damage waivers in an employee evaluation or determination ofpromotion. b. However, notwithstanding whether a rental company offers a collision damage waiver under the provisions of this subsection, the rental company shall not hold an authorized driverliable for damage or loss due to theft except where subsection 1, paragraph 'a', subparagraph(9) applies. 91 Acts, ch 204, §4; 2012 Acts, ch 1023, §127 Sat Dec 23 00:50:10 2023 Iowa Code 2024, Section 516D.4 (22, 0)
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