Auto insurance bill proposed for car sharing

Consumers who don't want to purchase a car can participate in a car sharing program.Personal car sharing is growing in the U.S. and California Assemblyman Dave Jones wants to make sure auto insurance companies and their policies provide adequate coverage.

Under present California law, people who engage in car sharing are at risk of losing their auto insurance because it’s classified as commercial activity. Jones introduced a bill that will adjust insurance regulations and guarantee that drivers sharing cars won’t lose their coverage.

Many supporters of this legislation view it as an environmentally-friendly alternative to every person owning a separate vehicle. Jessica Scorpio, co-founder of Gettaround – a person-to-person car sharing company – said that "California has a proud history of championing the environment and can continue to be a leader on the sustainability front by encouraging sharing behavior. If passed, this bill would prohibit a motor vehicle from being classified for insurance purposes as a commercial, for-hire, or permissive use vehicle solely on the basis of it being used for car sharing."

Car sharing is often used by people who don’t have the need for daily use of a car. These programs will allow communities to share vehicles for low hourly costs, the New York Times said.ADNFCR-3298-ID-19763518-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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