Will a new law kill car sharing in this state?
requires private vehicle rentals to comply with the same laws that apply to rental vehicles, rental vehicle transactions and rental vehicle companies. It is one of 34 proposed bills in state legislatures designed to regulate peer-to-peer car sharing companies. But it also contains a provision that doesn't limit a peer-to-peer car sharing company's liability and would be so"onerous" that one operator says it would have to stop doing business in the state.
"Consumers are not well served if they get into an accident in a peer-to-peer vehicle, and then discover there is an insurance gap that does not provide sufficient coverage for the driver, occupants, or third parties," said Sharky Laguana, an ACRA spokesman.Companies like Turo offer a platform that allows car owners to make their vehicles available to renters for a short period. Think of it as Airbnb for cars.
"If you are renting a car for profit to a member of the public, you are a car rental company," Greg Scott, the government relations representative for ACRA, On its surface, the Peer-to-peer Car Sharing Insurance Act looks like common-sense regulation. It imposes insurance requirements, liability provisions, and financial responsibility requirements on operators of peer-to-peer sharing vehicles. But Peacock says the law places three times the liability requirements on peer-to-peer sharing companies as on car rental companies.
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