Types of Rental Car Company Liability
Rental car companies may be liable for injuries and death resulting from collisions involving their vehicles under certain circumstances. While in Illinois, rental car companies are generally not held responsible for collisions involving rented vehicles, there are exceptions to this rule. 625 ILCS 5/6-305.
Financial Responsibility Requirements for Rental Companies
The Illinois Vehicle Code requires all owners of for-rent motor vehicles to prove financial responsibility. This includes:
- Prescribing a minimum amount of insurance or cash reserves for renters
- Protecting injured third parties
- Ensuring coverage for those who would otherwise be uninsured
Unsafe Practices and Procedures
Rental car companies can be held responsible for unsafe practices or procedures. For instance:
- Illinois law requires rental companies to verify that customers have a valid driver’s license
- If a company knows or should know that a customer is not a licensed driver, they may be held responsible for subsequent collisions
Negligent Entrustment in Rental Car Accidents
Under Illinois law, rental car companies can be held responsible for negligently entrusting a vehicle to a customer.
Defining Negligent Entrustment
Negligent entrustment occurs when a vehicle is entrusted to someone whose incompetence, inexperience, or recklessness is known or should have been known by the entrustor.
Conditions for Liability
The vehicle owner is liable for negligent entrustment when:
- The owner entrusted their car to an incompetent or unfit driver
- The incompetency was a proximate cause of the rental car accident
Implied Permission
Implied permission to use a vehicle exists when there’s a course of conduct or relationship between parties that includes a mutual agreement or lack of objection, signifying consent.
Voluntary Undertaking of Duty
Rental car companies can also be held responsible for voluntarily undertaking a duty to protect third persons.
Rental Car Company Policies
Each rental car company typically has internal rental policies and procedures designed to promote safety. These may include:
- Requiring multiple forms of identification
- Requesting multiple contact numbers before releasing a vehicle
- Implementing procedures to ensure vehicles are released only to licensed, competent, and responsible customers
By establishing these policies, rental companies voluntarily undertake a duty to ensure the safety of third persons.
Corporate Vehicle Liability
While Illinois doesn’t generally hold rental car companies responsible for collisions involving rented vehicles, there are exceptions. Companies may be liable if they:
- Negligently entrust a vehicle to a customer
- Voluntarily undertake a duty to third persons through their policies and procedures
In these situations, rental car companies can and should be held liable for injuries and death resulting from accidents involving their vehicles.
Minimum Requirements to Rent a Car
If a rental car company knows or should know that a customer is not a licensed driver, the company may be held responsible if that customer is later involved in a collision with the rental vehicle. The Illinois Vehicle Code also requires all owners of for-rent motor vehicles to prove financial responsibility. It prescribes a minimum amount of insurance or cash reserves for renters to protect injured third parties. 625 ILCS 5/9-101. The purpose of financial responsibility insurance is to protect those who would otherwise be uninsured.
Negligence and Entrusting Vehicle to Customer
Under Illinois law, rental car companies can be held responsible for negligently entrusting a vehicle to a customer. Negligent entrustment of a vehicle is “where that person entrusts the vehicle to one whose incompetence, inexperience, or recklessness is known or should have been known by the entrustor of the vehicle.”
Rental Car Company Policies
Each rental car company typically has its internal rental policies and procedures. Their employees are trained and instructed to follow these vehicle rental rules. Often, rental car companies require multiple forms of identification or multiple contact numbers before releasing a vehicle to a customer. These policies and procedures are intended to promote the safety of third persons by releasing vehicles to licensed, competent, and responsible customers and not renting vehicles to individuals who are likely to steal the vehicles or use them for unlawful purposes. By putting these policies and procedures in place, rental car companies voluntarily undertake a duty to ensure the safety of third persons.
Corporate Vehicle Liability Attorneys
If you’ve been injured or a loved one was killed as the result of a rental company’s negligence, contact our corporate vehicle liability attorneys at (312)766-1000 or email [email protected].
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