Rental Car Accident Attorney in Chicago

Rental Car Company Liability in Chicago

What happens if you sustain injuries in a rental car crash when the negligent driver was at the party with the rented vehicle? Just as your own auto insurance policy would cover your own costs, that driver’s insurer could pay your damages arising from an accident caused by one of its customers. If the driver of the rental car did not have an automobile insurance policy, the rental car company could become liable.

While car rental companies are generally not responsible for the actions of their customers, such businesses could be liable for negligent entrustment of a vehicle in certain cases. Illinois courts have held that “A person may be liable for negligent entrustment of an automobile where that person entrusts an automobile to one whose incompetency, inexperience or recklessness is known or should have been known by the owner or entrustor of the automobile.” [Kosrow v. Acker, 188 Ill. App. 3d 778 (1989)]

625 Illinois Compiled Statute 5/9-101 establishes that it is unlawful for owners of any motor vehicles to engage in the business of renting out such motor vehicles to be operated by customers, unless the owners have given, and there is in full force and effect and on file with the Secretary of State proof of financial responsibility. The purpose of this statute is to protect injured third parties, and rental car companies may be liable if they negligently entrust the vehicles to unlicensed drivers or motorists without insurance.