Rental passenger vehicles: renter liability: loss due to theft.

Assembly Member Calderon's rental vehicle liability legislation modifies how California rental car companies establish renter responsibility in cases of vehicle theft, removing the requirement for companies to prove renter negligence by "clear and convincing evidence." The measure revises Section 1939.03 of the Civil Code to establish new standards for when renters can be held liable for stolen vehicles.

Under the proposed changes, renters maintain protection from theft liability when authorized drivers return the ignition key and file a police report within 24 hours of discovering the theft. However, in cases where renters or authorized drivers fail to exercise ordinary care, rental companies must limit their recovery to the amount covered by the renter's or driver's insurance policy. The bill preserves existing provisions that shield renters from vandalism costs when they are not liable for the underlying theft.

The legislation maintains current caps on renter liability, including a $500 limit for vandalism unrelated to theft and provisions for rental companies to recover actual towing, storage and impound fees when renters are found liable for vehicle damage or loss. Administrative charges for damage assessment, repair coordination and vehicle replacement also remain recoverable under the amended framework.