344.51(1g)(a)
(a) "Lessor" means a person who, for compensation, leases a motor vehicle to a lessee to be operated by or with the consent of the lessee or who acquires a contract for the leasing of a motor vehicle from another person.
344.51(1g)(b)
(b) "Motor vehicle" means a self-propelled vehicle.
344.51(1g)(c)
(c) "Rental company" means a person who, for compensation, rents a motor vehicle to a renter to be operated by or with the consent of the renter or who acquires a contract for the renting of a motor vehicle from another person.
344.51(1m)
(1m) No lessor or rental company may for compensation rent or lease any motor vehicle unless there is filed with the department on a form prescribed by the department a certificate for a good and sufficient bond or policy of insurance issued by an insurer authorized to do an automobile liability insurance or surety business in this state. The certificate shall provide that the insurer which issued it will be liable for damages caused by the negligent operation of the motor vehicle in the amounts set forth in
s. 344.01 (2) (d). No lessor or rental company complying with this subsection, and no lessor or rental company entering into or acquiring an interest in any contract for the rental or leasing of a motor vehicle for which any other lessor or rental company has complied with this subsection, is liable for damages caused by the negligent operation of the motor vehicle by another person.
344.51(2)
(2) Any lessor or rental company failing to comply with this section is directly liable for damages caused by the negligence of the person operating such rented or leased vehicle, but such liability may not exceed the limits set forth in
s. 344.01 (2) (d) with respect to the acceptable limits of liability when furnishing proof of financial responsibility.
344.51(3)
(3) Any person violating this section may be required to forfeit not more than $200.
344.51 Annotation
A lessor is not liable to the lessee's insurer for monies that the insurer paid to a victim of the lessee's negligence. American Family Mutual Insurance Co. v. Reciprocal Ins. Service Exchange Mgt. Co.
111 Wis. 2d 308,
330 N.W.2d 223 (Ct. App. 1983).
344.51 Annotation
When a lessee's insurance was insufficient to cover all damages, the lessor's errors and omissions policy was required to cover remaining damages. Germanotta v. National Indemnity Co.
119 Wis. 2d 293,
349 N.W.2d 733 (Ct. App. 1984).
344.51 Annotation
Sections 344.30 and 344.16 permit car rental agencies to satisfy their obligation of proving financial responsibility by filing a certificate of self-insurance and receiving a certificate from DOT confirming their ability to pay. A self-insured agency is not the equivalent of an uninsured driver as it is not otherwise liable for its lessee's negligence. Its liability is limited to the amount an insurer would be required to pay, which under s. 344.01 (2) (d) is fixed at $25,000. Boatright v. Spiewak,
214 Wis. 2d 506,
570 N.W.2d 897 (Ct. App. 1997).
344.51 Annotation
No statute requires a self-insured entity under s. 344.16 to provide uninsured motorist coverage as part of the optional insurance it offers to its customers. Prophet v. Enterprise Rent-A-Car Company, Inc. 2000 WI App 171,
238 Wis. 2d 150,
617 N.W.2d 225.
344.52
344.52
Financial responsibility for foreign rented vehicles. 344.52(1)(1) Whenever any motor vehicle rented for compensation outside this state is operated in this state, the lessor of such motor vehicle is directly liable for all damages to persons or property caused by the negligent operation of such rented vehicle unless, at the time when such damage or injury occurs, the operation of the vehicle is effectively covered by a policy of insurance which provides coverage at least in the amounts specified in
s. 344.01 (2) (d) for property damage, personal injury or death suffered by any person on account of the negligent operation of such vehicle. The amount of liability imposed upon the lessor by this section in the absence of insurance coverage shall not exceed the limits set forth in
s. 344.01 (2) (d) with respect to the acceptable limits of liability when furnishing proof of financial responsibility. The fact that the rented vehicle is operated in this state contrary to any understanding or agreement with the lessor is not a defense to any liability imposed by this section.
344.52(2)(a)(a) If a motor vehicle rented for compensation outside this state is operated in this state, the lessor of the vehicle is considered to have irrevocably appointed the secretary as the agent or attorney upon whom legal process may be served in any action or proceeding against the lessor or the lessor's personal representative, successors, or assigns, growing out of the operation of the rented motor vehicle in this state, which appointment is binding upon the lessor's personal representative, successors, or assigns. The operation of the rented motor vehicle in this state is a signification of the lessor's agreement that legal process or notice may be served upon the lessor or the lessor's personal representative, successors, or assigns and that process or notice so served has the same legal force as if personally served upon them in this state.
344.52(2)(b)
(b) Service of process or notice under
par. (a) shall be made as provided in
s. 345.09. This section does not affect the right to serve process or notice on the nonresident operator of the rented motor vehicle as provided in
s. 345.09.
344.52(3)
(3) In this section, "motor vehicle" means a self-propelled vehicle.
344.52 History
History: 1977 c. 29;
2001 a. 102.
344.55
344.55
Insurance for human service vehicles. 344.55(1)
(1) No motor vehicle may be used as a human service vehicle unless a policy of bodily injury and property damage liability insurance, issued by an insurer authorized to transact business in this state, is maintained thereon. The policy shall provide property damage liability coverage with a limit of not less than $10,000. The policy also shall provide bodily injury liability coverage with limits of not less than $75,000 for each person and, subject to such limit for each person, total limits as follows:
344.55(1)(a)
(a) $150,000 for each accident for each motor vehicle having a seating capacity of 7 passengers or less.
344.55(1)(b)
(b) $200,000 for each accident for each motor vehicle having a seating capacity of 8 to 15 passengers.
344.55(1)(c)
(c) $250,000 for each accident for each motor vehicle having a seating capacity of 16 to 24 passengers.
344.55(1)(d)
(d) $375,000 for each accident for each motor vehicle having a seating capacity of 25 to 36 passengers.
344.55(1)(e)
(e) $500,000 for each accident for each motor vehicle having a seating capacity of 37 to 49 passengers.
344.55(1)(f)
(f) $500,000 plus not less than $10,000 for each accident for each passenger seat accommodation for each motor vehicle having a seating capacity of 50 or more passengers.
344.55(2)
(2) The department may not issue registration plates for such a vehicle unless there is on file with the department a certificate of insurance showing that the vehicle is insured in compliance with
sub. (1). No such policy may be terminated prior to its expiration or canceled for any reason unless a notice thereof is filed with the department at least 30 days prior to the date of termination or cancellation. The department shall suspend the registration of a vehicle on which the insurance policy has been terminated or canceled, effective on the date of termination or cancellation.
344.55 History
History: 1983 a. 175 s.
20; Stats. 1983 s. 344.55;
1997 a. 84.
344.57(1)
(1) "Accident" means collision of a private passenger vehicle with another object or other upset of the private passenger vehicle while in operation.
344.57(2)
(2) "Authorized driver" means, in connection with a private passenger vehicle under a rental agreement, all of the following:
344.57(2)(a)
(a) The spouse of the renter, if the spouse is a licensed driver and meets any minimum age requirement in the rental agreement.
344.57(2)(b)
(b) A person listed in the rental agreement as an authorized driver.
344.57(2)(c)
(c) The renter's employer, employee or co-worker, if the employer, employee or co-worker engages in a business activity with the renter, is a licensed driver and meets the rental company's minimum age requirement.
344.57(2)(d)
(d) A person who operates the private passenger vehicle during an emergency or while parking the private passenger vehicle at a commercial or private establishment.
344.57(3)
(3) "Damage waiver" means a contractual provision under which a rental company agrees for a charge not to hold a renter or authorized driver liable for damage or loss related to a private passenger vehicle rented by the renter.
344.57(4)
(4) "Private passenger vehicle" means a type 1 automobile.
344.57(5)
(5) "Rental agreement" means a written agreement setting forth the terms and conditions governing the use of a private passenger vehicle provided for rent by a rental company.
344.57(6)
(6) "Rental company" means a person in the business of providing private passenger vehicles for rent to the public.
344.57(7)
(7) "Renter" means the person who rents a private passenger vehicle from a rental company under a rental agreement.
344.57 History
History: 1989 a. 328.
344.572
344.572
Applicability to rental agreements. 344.572(1)
(1) Except as provided in
sub. (2),
ss. 344.574,
344.576 and
344.578 apply to all rental agreements concerning private passenger vehicles rented from locations in this state for a period of 30 consecutive days or less.
344.572(2)
(2) Sections 344.574,
344.576 and
344.578 do not apply to a rental agreement under which a person rents from a motor vehicle dealer licensed under
ss. 218.0101 to
218.0163 a private passenger vehicle owned by the dealer if the private passenger vehicle is rented only for use while a vehicle owned or leased by the person or which the person has agreed to purchase is being serviced, repaired, manufactured or delivered.
344.572 History
History: 1989 a. 328;
1999 a. 31.
344.574
344.574
Limited liability for damage. 344.574(1)
(1)
Damage to private passenger vehicle. 344.574(1)(a)(a) Unless a renter purchases a damage waiver offered in accordance with
s. 344.576, a rental company may hold the renter liable to the extent permitted under
subs. (2) to
(4) for physical or mechanical damage to the rented private passenger vehicle that is caused by any of the following:
344.574(1)(a)1.
1. An accident occurring while the private passenger vehicle is under the rental agreement.
344.574(1)(a)2.
2. The renter or an authorized driver who is using the private passenger vehicle, intentionally or by his or her reckless or wanton misconduct.
344.574(1)(b)
(b) Unless a renter purchases a damage waiver offered in accordance with
s. 344.576, a rental company may hold an authorized driver liable to the extent permitted under
subs. (2) to
(4) for physical or mechanical damage to the rented private passenger vehicle that is caused by any of the following:
344.574(1)(b)1.
1. An accident occurring while the private passenger vehicle is operated by the authorized driver and is under the rental agreement.
344.574(1)(b)2.
2. The authorized driver who is using the private passenger vehicle, intentionally or by his or her reckless or wanton misconduct.
344.574(2)(a)(a) The total liability of a renter or authorized driver under
sub. (1) for damage to a rented private passenger vehicle may not exceed all of the following:
344.574(2)(a)1.a.
a. The actual and reasonable costs that the rental company incurred to repair the private passenger vehicle or that the rental company would have incurred if the private passenger vehicle had been repaired, which shall reflect any discounts, price reductions or adjustments available to the rental company.
344.574(2)(a)1.b.
b. The fair market value of that private passenger vehicle immediately before the damage occurred, as determined in the customary market for the sale of that private passenger vehicle.
344.574(2)(a)2.
2. Actual and reasonable costs incurred by the rental company for towing the private passenger vehicle and for storage of the private passenger vehicle for no more than 2 days.
344.574(2)(b)
(b) A rental company may not hold the renter or authorized driver liable for any of the following:
344.574(2)(b)1.
1. Loss or damage to the private passenger vehicle resulting from a cause other than that described in
sub. (1) (a) 1. or
2. with respect to the renter or
sub. (1) (b) 1. or
2. with respect to the authorized driver.
344.574(2)(b)3.
3. Any administrative charges, including the cost of appraisal, or other costs or expenses that are incidental to the damage to the private passenger vehicle.
344.574(2)(c)
(c) A rental company may not hold the renter liable for any amounts that the rental company has recovered from an authorized driver. A rental company may not hold an authorized driver liable for any amounts that the rental company has recovered from the renter.
344.574(4)
(4) Inspection and estimates. A rental company may not collect or attempt to collect the amount described in
sub. (2) (a) from the renter or authorized driver or the insurer of the renter or authorized driver unless the rental company satisfies all of the following:
344.574(4)(a)
(a) Allows the renter or authorized driver who may be liable under
sub. (1) (b) and the insurer of the renter or authorized driver to inspect the unrepaired rented private passenger vehicle within 2 working days after the rental company is notified of the damage. Upon receiving notice of the damage, the rental company shall promptly notify the renter or authorized driver who may be liable under
sub. (1) (b) of his or her right and his or her insurer's right to inspect the private passenger vehicle.
344.574(4)(b)
(b) Obtains at least 2 estimates from competing repair shops on the costs of repairing the private passenger vehicle, makes a copy of each estimate available upon request to the renter or authorized driver who may be liable under
sub. (1) (b) or the insurer of the renter or authorized driver who may be liable under
sub. (1) (b) and submits a copy of each estimate with any claim to collect the amount described in
sub. (2) (a).
344.574 History
History: 1989 a. 328.
344.576(1)(1)
Offer and sale restricted. A rental company may not offer or sell a damage waiver in conjunction with a rental agreement unless the terms of the damage waiver comply with
sub. (2) and the renter is provided the notice required under
sub. (3).
344.576(2)
(2) Terms. Every damage waiver shall provide that the rental company may not hold the renter or authorized driver liable for any amount that the renter or authorized driver might otherwise be liable for under
s. 344.574 (2) (a) for damage to the rented private passenger vehicle, unless any of the following applies:
344.576(2)(a)
(a) The damage is caused by the renter or authorized driver intentionally or by his or her reckless or wanton misconduct.
344.576(2)(b)
(b) The damage occurs while the renter or authorized driver operates the private passenger vehicle in this state while under the influence of an intoxicant or other drug, as described under
s. 346.63 (1) (a),
(am), or
(b) or
(2m).
344.576(2)(c)
(c) The damage occurs while the renter or authorized driver operates the private passenger vehicle in another state while under the influence of an intoxicant or other drug, as described in the laws of that state.
344.576(2)(d)
(d) The damage occurs while the renter or authorized driver is engaged in a race or speed or endurance contest.
344.576(2)(e)
(e) The damage occurs while the renter or authorized driver is using, or has directed another to use, the private passenger vehicle in the commission of a misdemeanor or felony, as those terms are defined in
s. 939.60.
344.576(2)(f)
(f) The damage occurs while the renter or authorized driver uses the private passenger vehicle to carry persons or property for hire.
344.576(2)(g)
(g) The damage occurs while the renter or authorized driver uses the private passenger vehicle outside of the United States or Canada, unless use outside the United States or Canada is permitted under the rental agreement.
344.576(2)(h)
(h) The damage occurs while the private passenger vehicle is operated on a surface not intended for use by private passenger vehicles.
344.576(2)(i)
(i) The renter provided misleading or false information to the rental company, causing the rental company to rent the private passenger vehicle when the rental company would not have otherwise done so, or on terms to which it would not have otherwise agreed.
344.576(2)(j)
(j) The renter or the authorized driver who was operating the private passenger vehicle when an accident occurred fails to promptly report to the police and rental company the accident resulting in damage to the private passenger vehicle.
344.576(3)(a)(a) A rental company that offers or sells a damage waiver shall provide to each renter a written notice that is in the form required by rule under
par. (c) and that includes all of the following:
344.576(3)(a)2.
2. A statement that the liability of the renter or authorized driver under
s. 344.574 (2) (a) may be covered by the renter's or authorized driver's personal motor vehicle insurance policy or by an agreement under which the renter or authorized driver has obtained a credit card.
