John J. Malm & Associates Secures Policy-Limit Uninsured Motorist Settlement After Turo Vehicle Accident

At John J. Malm & Associates, we recently resolved a challenging case that underscores the importance of uninsured motorist (UM) coverage. Our client, an innocent driver, was severely injured in a high-speed police chase involving a rented Turo vehicle. We were able to secure a $100,000 policy-limits settlement for him after placing a claim against his UM coverage.  This case reveals the complexities of liability and insurance coverage in accidents involving peer-to-peer car rentals, as well as the critical role of UM policies in securing compensation.

The Incident: A Turo Vehicle Involved in a Police Chase

The driver of a rented Turo vehicle fled from law enforcement during a high-speed pursuit. While attempting to evade capture, the at-fault driver collided with our client’s car, causing a devastating crash. The impact resulted in catastrophic injuries to our client, including broken bones, internal injuries, and long-term physical impairments.

Adding to the complexity, the at-fault driver did not have any valid insurance coverage, leaving our client with mounting medical expenses, lost income, and no immediate source of compensation. The severity of the injuries required several days of hospitalization in the Intensive Care Unit (ICU), followed by months of rehabilitation and treatment.

The Rise of Peer-to-Peer Rentals and Risks on Illinois Roads

Peer-to-peer car rental platforms like Turo have grown in popularity, offering Illinois residents a convenient alternative to traditional rental companies. However, this rise has brought new risks to Illinois roads. Unlike regulated rental companies, peer-to-peer services rely heavily on renters and vehicle owners to ensure proper insurance and vehicle maintenance. This business model increases the likelihood of gaps in coverage and introduces significant liability challenges.

The Illinois Department of Transportation (IDOT) reported 298,347 motor vehicle crashes statewide in 2022, with injury crashes accounting for 20% (59,795) and fatal crashes less than 1% (1,147). While specific data on peer-to-peer rentals is limited, their growing presence raises concerns about their impact on traffic safety.

Nationally, the National Highway Traffic Safety Administration (NHTSA) reported an estimated 42,915 traffic fatalities in 2021, reflecting a 10.5% increase from the previous year. As peer-to-peer rentals integrate further into the transportation ecosystem, it is critical to assess how their unique insurance structures and user responsibilities influence roadway safety and accident outcomes. This case exemplifies the heightened risks associated with these platforms and underscores the importance of carrying adequate insurance protection.

Insurance Challenges in Peer-to-Peer Rentals

Turo operates as a peer-to-peer rental platform, where private vehicle owners rent their cars to others. Unlike traditional rental companies, Turo places much of the insurance responsibility on the renter and vehicle owner. In this case, the at-fault driver had opted out of Turo’s protection plan and did not carry personal auto insurance, creating significant challenges in securing compensation.

Uninsured Motorist (UM) Coverage Needed

Fortunately, in our case, our client carried UM coverage through Allstate, and we were able to obtain a policy-limits settlement. UM policies are designed to protect individuals injured by uninsured or underinsured drivers. Here’s how UM coverage played a vital role in this case:

1. Activating the Policy: Our legal team demonstrated that the at-fault driver’s lack of insurance qualified the incident under our client’s UM policy.
2. Building the Claim: We meticulously documented the extent of our client’s injuries, the long-term impact of the crash, and the significant financial losses incurred.
3. Negotiating a Settlement: By leveraging Illinois’s mandatory UM coverage requirements, we secured the full policy limits for our client, ensuring his medical bills and pain and suffering were adequately addressed.

The Settlement Outcome

Through diligent advocacy and a thorough understanding of Illinois insurance law, our firm successfully recovered the full UM policy limits of $100,000 for our client. This financial compensation provided much-needed relief to cover:

• Emergency medical treatment and ICU costs.
• Extensive rehabilitation and follow-up care.
• Compensation for pain, suffering, and emotional distress.

Lessons Learned from This Case

This case highlights several key lessons for Illinois motorists who may encounter a peer-to-peer rental vehicle in the road:

1. Carry Sufficient UM Coverage: Uninsured motorist policies are a critical safety net, particularly when accidents involve uninsured drivers or unconventional rental arrangements like Turo.
2. Understand Peer-to-Peer Insurance Gaps: Peer-to-Peer rental models often place the burden of insurance on renters and owners, which can create significant gaps in coverage. Renters should always elect a protection plan or ensure their personal policy covers peer-to-peer rentals.
3. Seek An Experienced Illinois Car Accident Lawyer: Navigating the complexities of UM claims and peer-to-peer rental liabilities requires skilled legal advocacy. At John J. Malm & Associates, our team’s expertise ensured a successful outcome for our client.

Moving Forward with Confidence

As Naperville uninsured motorist claim attorney, John J. Malm, explains, “Cases involving Turo vehicles reveal how critical uninsured motorist coverage can be for innocent victims. Many Turo users simply fail to elect or maintain insurance coverage for an accident they cause or become involved in while operating the vehicle.  This serious shortcoming affects all of us – not just the Turo renter and their passengers.  Our goal in representing victims of uninsured motorists has always been to identify every possible avenue of recovery to protect our clients’ rights and secure the compensation they deserve.”

If you or a loved one has been injured in an accident involving a peer-to-peer rental vehicle or Turo vehicle, contact John J. Malm & Associates today for a free consultation. With offices in Naperville and St. Charles and over 90 years of combined litigation experience, our top-rated Illinois car accident attorneys are here to help you navigate complex legal and insurance challenges and achieve the best possible outcome.