Committee hears bill to clarify rental‑car 'loss of use' fees after concerns from insurers

Senator Hoeffner presented House Bill 382, with House Amendment 2, to the Senate Executive Committee on June 30, saying the measure would align Titles 6 and 21 of the Delaware Code and restore the ability to recover loss‑of‑use damages for intentional, willful or criminal conduct while preventing unnecessary litigation.

The bill’s sponsor said HB382 is intended as a technical clarification following issues flagged after enactment of prior legislation (HB209) and that it preserves "the general assembly's original intent" while reducing ambiguity. "Delaware drivers deserve clear and predictable rules," she said.

Industry witnesses backed the bill. Lincoln Willis, representing Avis Budget Group, told the committee the legislation fixes conflicting terminology between rental vehicles and shared vehicles and would reinstate limited loss‑of‑use recovery. Matt Kropinski, group risk manager for Enterprise Mobility, said he echoed Willis and requested the committee's support.

Allstate Insurance and Turo opposed the measure. Chris DiPietro argued that loss‑of‑use charges had been characterized previously as "junk fees" and that HB382 could create a new avenue for those fees. "Who gets to decide what's intentional and willful? The rental car company gets to decide," DiPietro said, warning that companies could impose fees before a court adjudicates criminal conduct. He also noted concerns about carriers facing additional contractual claims if fees are assessed without clear parameters.

Committee members asked procedural and definitional questions; Senator Townsend said he would seek clarity after the meeting on when and how a rental company or insurer could make binding determinations about intent. There were no recorded committee votes on HB382 during this hearing.

The committee moved on to other items on the agenda; no final action on the bill was taken at this meeting.