HB2918 – Insurance requirements for peer-to-peer car sharing businesses.
Prime Sponsor – Representative Corry (R; 14th District; Yakima, Klickitat and Skamania counties)
Current status – Referred to the House Committee on Consumer Protection and Business.
Next step would be – A striker for HB2773 replaced the language of that bill with this one’s.
Legislative tracking page for the bill.

Comments –
As I read the bill, the car sharing company is not made liable for damage to the shared car itself; it may provide coverage for that, but is not required to.

(HB2773 is another bill on the subject, dealing with the same issues with some differences in language and detail which may matter to lawyers. ) It’s now been replaced by a striker that substituted the language of this bill for its original text.

Summary –
The bill makes a peer-to-peer car sharing company liable for bodily injury, or property damage to third parties, or uninsured and underinsured motorist or personal injury protection losses during the period when an owner’s car is being used by another driver, and when it’s being delivered to that driver. It’s liable for the amount stated in the car sharing agreement, which must at least satisfy the State’s minimum insurance coverage requirements. However, it’s not liable if the owner makes an intentional or fraudulent material misrepresentation or omission to the company before the car sharing period in which the loss occurred; or is acting in concert with a driver who fails to return the vehicle according to the terms of the agreement. (There’s a provision I don’t understand which says the company is liable for these damages “notwithstanding the definition of car sharing termination time” provided in the bill.)

Companies are required to ensure that there is insurance coverage, at least at the levels the State requires, for the owner and the driver, and that it recognizes that the vehicle will be used in a peer-to-peer sharing program or doesn’t exclude that. (The coverage may be provided by the owner, the driver, the company, or some combination of those. I think that Section 4(7)(b) means that the company is not required to provide any coverage, only to ensure that there is the minimum.) If the company is providing all or part of the required insurance it assumes the primary liability if there’s a dispute about who was in control of the car at the time the loss occurred or it’s failed to provide required information about liability coverage to the driver or driver, but it’s to be indemnified by the owner’s insurance company if it’s determined that the owner was in control of the car at the time of the loss. The car sharing company is also required to provide the minimum coverage if the driver or owner doesn’t have insurance that provides it, and to notify owners with liens on their cars that allowing them to be shared through the program may violate the terms of the lien. If an insurance company chooses to defend or indemnify a claim against an owner or a driver for a loss while a car was being shared, and the company’s policy excluded that coverage, it can seek reimbursement from the car sharing company’s insurer.

Insurance companies may exclude any and all coverage for vehicles used in peer-to-peer sharing programs. Car sharing companies are required to keep records on the times cars were used, the fees paid by drivers, and the revenues received by owners for at least the length of the applicable personal injury statute of limitations.

Car sharing agreements have to inform the owner and the driver that they’re potentially liable for any economic loss that violating the terms and conditions of the agreement causes the company, and that their car insurance policies will not cover those. They have to inform them that the company’s insurance may not cover them if the car is shared past the termination time in the agreement, that owner’s liability insurance may not provide coverage for a shared vehicle, and if there are conditions under which the driver has to have a policy providing primary coverage with certain limits to book a shared vehicle. The agreement also has to provide the daily rate, fees, any applicable insurance or protection package costs that are charged to the owner or the driver, and an emergency telephone number for roadside assistance and other customer service.

Companies can only enter sharing agreements with legally authorized drivers. They’re responsible for any equipment they install in the car, and can’t charge an owner if it’s stolen, unless the owner caused that; if a driver damages or loses their equipment, they can try to recover for that loss. They must verify that there are no outstanding safety recalls on cars registering for the program, and notify owners that if they receive new recalls they’re responsible for taking cars out of the program until the problem’s been fixed.