Opinion ID: 2116300
Heading Depth: 2
Heading Rank: 1

Heading: Indiana's Vehicle Rental Act

Text: This interlocutory appeal deals with the effect of two contractual provisions. The first prohibits the use of the vehicle for any illegal purpose or in any abusive or reckless manner or if convicted of careless driving, and voids the collision damage waiver for losses incurred as a result of prohibited activity. The second provides for the rental company to recover attorney fees in case of a breach. Harbour argues Arelco cannot enforce either provision against him because neither conforms to the Vehicle Rental Act. This law was enacted by the Indiana Legislature in 1989 to regulate the practices of motor vehicle rental companies. It is clear from the plain language of the statute that a major thrust of the Act is to protect consumers from being misled or given inadequate information when renting a car. Indeed, Section 24 of the Act provides that a violation of the Act is also a deceptive act that triggers the sanctions of Indiana's Deceptive Consumer Sales Act. IND.CODE § 24-5-0.5 (1993 & Supp.1995). In this case, it is undisputed that Harbour purchased a collision damage waiver. Under a collision damage waiver, the rental company agrees to waive claims against the renter for damage to the rented vehicle. The Act deals specifically with collision damage waivers. It allows rental companies to offer and sell the waiver for a separate charge under certain conditions set forth in Section 10(a). Section 9 limits the circumstances in which the rental agreements may provide that the collision damage waiver does not apply. Section 10(b) requires that specific information be disclosed to the renter. If the contract does not conform to the statutory requirements, Section 19 provides that it is unenforceable.