California could promote car sharing programs with bill currently in state Senate

A proposed California law could allow more than one driver to pool responsibility for car insurance costs on shared vehicles, and receive reimbursement from group members for gas, depreciation, and maintenance, according to an announcement from car accident law firm Carman and Bevington.

Car sharing programs have been around for some time, the law firm said, but one of their major drawbacks has always been the ability of insurance companies to nullify coverage if they discover that cars are being used by more than one person.

However, Carman and Bevington says that the California bill was crafted in close collaboration with the insurance industry, and would allow cars to be shared through properly certified exchanges. One caveat to this regulation, however, is the proviso that the money received as reimbursement for gas and upkeep cannot exceed the costs of these services. Otherwise, the law firm says, insurers can consider the policy as covering a commercial vehicle, which is subject to much stricter oversight.

Additionally, they say, the group organizing the car exchange must provide insurance for the time a vehicle is being driven by someone other than its owner, and the coverage amount must be equal to or greater than that held by the vehicle’s owner. There are also electronic records requirements that must be met my any car exchange organization that hopes to avoid commercial insurance requirements, in order to document times when the car has been outside of the owner’s control, according to Carman and Bevington.

Car sharing programs are widely touted by environmental groups and others as having a number of advantages over the traditional commuter model, including reduced fuel costs and a lower environmental impact.