AB 1197

Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers, as provided. Existing law prohibits a rental company from using, accessing, or obtaining any information relating to the renter’s use of the rental vehicle that was obtained using electronic surveillance technology, as defined, except under specified circumstances. Existing law permits a rental company and a renter to limit the responsibilities of a renter in specified events, including loss due to theft of the rented vehicle up to its fair market value, as provided. Existing law establishes, in the situation described in the previous sentence, a presumption that the renter has no liability for loss due to theft if specified conditions are met, including that an authorized driver has possession of the ignition key or establishes that the ignition key was not in the vehicle at the time of the theft, as provided. This bill would allow a rental company to use geofence technology, as specified, to detect rental vehicle movement in prescribed circumstances. The bill, with respect to the above-described provisions relating to the renter’s liability for loss due to theft, would revise the presumption that the renter has no liability for loss due to theft to instead apply this presumption if an authorized driver returns the ignition key.