Car-sharing is becoming more and more popular to help save money and the environment. Old school car pooling has paved the way for today's car-sharing. Along with this increase in car-sharing comes questions about what your auto insurance company is going to cover. Laws in California and Oregon have updated to include car-sharing practices, so you will know what is covered by your San Diego auto insurance policy. Other states haven't followed suit yet though, so check with your individual auto insurance company to find out what is covered.
In "Auto insurance risks of car sharing," Jay MacDonald of Bankrate says that peer-to-peer (P2P) car-sharing is a gray area of coverage for many auto insurance companies. P2P car-sharing can be either for-profit or not-for-profit and that can make a big difference in coverage. Car rental companies and even some manufacturers are also getting into the car-sharing business where you pay a monthly membership fee and then rent a car for an hourly or daily cost when you need it.
Auto insurance risks vary by the type of car-sharing, but here are some of the most common things to look into. If you are renting your own car, it is not likely that your auto insurance company will cover that so make sure the P2P company offers auto insurance coverage. Depending on who is driving the car, their auto insurance may cover them in your vehicle. There is an increased risk when using your car for car-sharing so you may see increased premiums or even have your policy canceled by your auto insurer. There will also be more questions related to liability, depreciation, and transition if you are sharing your car. Bottom line, make sure to cover all of your auto insurance bases before beginning a car-share program.
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