Law Passed Regarding Peer-To-Peer Carshare Rentals and Insurance Requirements

 In a new law passed by the Pennsylvania Legislature, effective immediately, new insurance ground rules were set for peer-to-peer carshare rentals.

The law defines "Peer-to-peer carsharing" as "[t]he authorized use of a vehicle by an individual other than the vehicle's owner through a peer-to-peer carsharing program.  The term does not include a rental car obtained through a rental car company."

The law outlines the insurance coverage requirements for companies engaging in peer-to-peer carsharing, and mandates an additional layer of insurance so that injured third parties won't be left uninsured if a car owner's policy includes execeptions for livery (for-hire vehicles) activities or business activities.

It appears that, under the law, insurers are allowed to exclude coverage to an insured in the event the insured rents a peer-to-peer car, such that the renter would have to utilize the insurance coverage secured by the peer-to-peer carshare company, which coverage is permitted to be provided at the minimum levels required by the Motor Vehicle Code.

The Bill can be viewed at this LINK.

Source: Article - "'Last-Minute' Amendment Establishes New Law for Peer-to-Peer Car Rentals, Catches Litigators Off Guard" by Max Mitchell of the Pennsylvania Law Weekly (July 18, 2022).

Source of image:  Photo by Why Kei on www.unsplash.com.