CO HB1187

Creates new Colorado statute 13-21-128 requiring rental vehicle damage claims to be reasonably and rationally related to actual loss incurred, with rental companies required to mitigate damages where possible.

Limits physical damage claims to the lesser of actual repair costs (including all discounts) or the actual cash value of the vehicle before loss, minus proceeds from disposal; excludes diminishment in value solely from the accident itself.

Caps administrative fees at $100 for processing damage claims and limits loss-of-use claims to the daily rental rate multiplied by repair hours divided by six, with no loss-of-use claims allowed if the vehicle is not repaired.

Takes effect August 6, 2014, unless a referendum petition is filed, in which case the law becomes effective only upon voter approval at the November 2014 general election.

Applies to causes of action accruing on or after the effective date.