What Happens When A Turo Vehicle Causes An Accident?

Experienced Illinois Car Accident Attorneys Offer Insights on Liability and Insurance Coverage When Someone is Injured By A Turo Vehicle

Recent incidents reportedly involving Turo vehicles that have caused injury and death to innocent people have raised critical questions about liability and insurance coverage when an accident occurs. While these terrible incidents appear intentional, they prompt broader concerns about accountability when injuries involve a rented Turo vehicle.

The rise of peer-to-peer car rental services like Turo has revolutionized the way people rent vehicles, offering convenience and affordability. However, these transactions also bring unique legal challenges, particularly when a rented Turo vehicle causes an accident or injury.

At John J. Malm & Associates, with offices in Naperville and St. Charles, our team of experienced Illinois car accident lawyers has over 90 years of combined litigation experience handling complex personal injury cases. In this blog, we delve into the legal implications of accidents involving Turo vehicles, including insurance coverage, liability issues, and how multiple policies may apply to an injured party’s claim.

The Turo Platform and Its Impact on Road Safety

Turo allows private vehicle owners to rent their cars to individuals through a digital platform, much like Airbnb for vehicles. While convenient, the nature of these arrangements often complicates liability and insurance coverage. According to a 2022 report by the National Highway Traffic Safety Administration (NHTSA), peer-to-peer car rentals have contributed to increased vehicle usage in urban areas, leading to a proportional rise in accidents.

Statistics Highlighting the Risks of Rental Vehicles:

• The NHTSA reported a 10% increase in vehicle crashes involving temporary rentals between 2020 and 2022.
• A survey by the Insurance Institute for Highway Safety (IIHS) found that 42% of Turo users were unsure of their insurance coverage in the event of an accident.
• Illinois Department of Transportation (IDOT) data indicates that accidents involving rented vehicles account for approximately 15% of all reported crashes statewide.

Legal Challenges When a Turo Vehicle Causes an Accident

1. Insurance Coverage Complications

Turo offers different levels of insurance for vehicle owners and renters, but coverage gaps are common, especially when personal policies intersect with Turo’s commercial coverage. Illinois law mandates minimum liability insurance, but this may fall short in severe accidents.

Key considerations:

• Does the renter’s personal insurance cover the accident?
• Does the vehicle owner’s policy apply, and how?
• How does Turo’s commercial policy integrate with other policies?

2. Determining Liability

Illinois applies a comparative negligence standard, assigning fault to all parties involved in an accident. Potentially liable parties in a car accident involving a Turo rental vehicle include:

• The renter for negligent driving.
• The owner for improper vehicle maintenance.
• Turo for failing to ensure safe vehicle conditions or qualified drivers.

3. Multiple Insurance Policies

Accidents often involve overlapping policies:

• The renter’s personal policy may provide initial coverage.
• Turo’s commercial policy offers supplemental coverage.
• The vehicle owner’s insurance may also apply.

Navigating these layers of coverage requires expert legal analysis. At John J. Malm & Associates, our top-rated Naperville car accident lawyers ensure clients receive maximum compensation from all applicable policies.

Example of a Real-World Case Involving a Turo Vehicle

In one case at our firm, a Turo vehicle was involved in a high-speed police chase. The driver of the rented Turo vehicle fled from law enforcement and collided with our client’s car, causing a severe crash. The Turo vehicle in this case was uninsured, as evidence came forward showing that the driver was not listed on the Turo rental agreement.  Our client suffered numerous injuries, required hospitalization, and spent several days in the ICU.  Ultimately, we pursued a successful uninsured motorist (UM) claim against our client’s policy with Allstate to secure compensation under his uninsured motorist coverage. Had our client not carried his own UM coverage, he would not have received any compensation for the significant injuries and losses he suffered due to the at-fault driver’s actions.

Insurance and Coverage Options for Turo Rentals

Renters of Turo vehicles face unique insurance requirements that differ from traditional rental car companies. On the Turo platform, drivers must elect a protection plan offered by Turo to obtain coverage. Without this election, the renter is generally uninsured unless they have their own personal auto insurance policy that explicitly covers rentals.

Turo’s Protection Plans

Turo offers varying levels of protection plans for renters, which can include liability coverage, physical damage coverage, and other benefits. However, if a renter opts out of these plans, they assume full financial responsibility for any damages or liabilities arising from an accident.

Impact on Liability

When a renter fails to select a Turo protection plan, the question of insurance coverage often defaults to the renter’s personal auto insurance policy. Illinois law requires personal policies to meet minimum liability requirements, but not all personal policies extend to peer-to-peer rental vehicles. This gap leaves some renters entirely uninsured.

Legal Implications

The decision to opt-out of Turo’s protection plan can have significant consequences in the event of an accident:

1. Personal Financial Responsibility: Renters without coverage are liable for damages out of pocket, which can include medical expenses, property damage, and more.
2. Potential Impact on Injured Parties: Injured parties may face delays or complications when seeking compensation if the at-fault renter is uninsured.

How Turo Rentals Can Trigger Coverage Under Uninsured Motorist Policies

Accidents involving rented Turo vehicles often raise questions about whether the renter’s personal uninsured motorist (UM) policy applies. In many cases, the unique nature of Turo rentals—a peer-to-peer transaction rather than a traditional rental—can complicate insurance claims. Understanding when and how UM coverage is triggered is crucial for injured parties seeking compensation.

What Is Uninsured Motorist Coverage?

Uninsured motorist coverage is designed to compensate individuals who are injured in accidents caused by drivers who lack sufficient insurance. In Illinois, UM coverage is mandatory for all automobile policies, ensuring that injured parties have a source of compensation when the at-fault driver is uninsured or unidentified.

How Uninsured Motorist Coverage Applies to Turo Accidents

UM coverage may be triggered in Turo-related accidents under several scenarios:

1. At-Fault Driver Lacks Adequate Insurance: If the renter of a Turo vehicle causes an accident and their insurance coverage is insufficient or nonexistent, the injured party’s UM policy may cover the damages.
2. Hit-and-Run Scenarios: If a Turo vehicle is involved in a hit-and-run accident, UM coverage may be the only available source of compensation for the injured party.
3. Gaps in Turo’s Commercial Policy: While Turo provides liability insurance, it may not always cover all aspects of a claim. For example, if the renter opts for minimum coverage through Turo, additional compensation may be sought through the injured party’s UM policy.

The Importance of Legal Guidance in Cases Involving Turo Vehicles

As Naperville car accident attorney John J. Malm explains, “Accidents involving Turo vehicles often involve multiple layers of insurance coverage and complex liability issues. Our team’s goal is to uncover every potential source of compensation to ensure our clients’ rights are fully protected and justice is served.”

Navigating claims involving Turo rentals requires an in-depth understanding of policy language, state laws, and relevant precedents. At John J. Malm & Associates, our Illinois car crash attorneys are highly experienced in identifying all available coverage options to maximize our clients’ compensation. Our personal injury firm is committed to thoroughly investigating every aspect of your case to ensure you receive the financial support you deserve. If you’ve been injured in an accident involving a Turo vehicle, our team can help you explore insurance coverage, resolve insurance disputes, and pursue legal remedies to protect your rights. Contact our office today for a free consultation.