Peer-to-peer Motor Vehicle Sharing Program

Peer-to-peer car sharing - insurance - equipment - notifications. The act regulates peer-to-peer car sharing programs as follows:

• Requires the shared car to be covered by insurance from the driver or from the program, but if the program provides the insurance, the required coverage is 3 times the normal required coverage;
• If the required insurance is provided by the driver, the program must carry insurance to cover a lapse or lack of coverage, and this insurance may be purchased from a surplus lines insurer;
• Makes the insurance that satisfies the required coverage the primary insurance;
• Requires the program to notify the car owner that sharing the car may violate any lien on the car;
• The program must assume liability up to the required coverages, except liability caused by the shared car owner's material misstatement of fact or the shared car owner's actions in concert with a shared car driver who fails to return the shared car;
• Authorizes the shared car owner's insurer to exclude coverage when the car is being used in a program, and gives the insurer a right of contribution for any claims made as a result of the car sharing;
• Prohibits an insurer from refusing to insure a shared car outside the sharing solely because the car covered under the policy has been made available for car sharing;
• Sets record-keeping requirements;
• Clarifies that the program and a shared car owner are covered by the exemption set forth in federal law exempting rental companies from vicarious liability based on ownership of the car;
• Authorizes a program to be the named insured for a shared car;
• Requires the program to make certain disclosures and provide an emergency telephone number;
• Requires the program to verify that the driver is licensed to drive and keep records of this verification;
• Makes the program responsible for any equipment installed on the car for sharing purposes;
• Requires the program and the car owner, when there is a safety recall on the car, to remove the car from the program until the car is repaired; and
• Requires a program to enter into concession agreements with local airports to collect the airport fees on car sharing at an airport.
  (Note: This summary applies to this bill as enacted.)