Personal Vehicle Sharing (CA)

Personal Vehicle Sharing (CA) SSL Draft 


This Act prohibits a private passenger motor vehicle from being classified for insurance purposes as a commercial, for-hire, or permissive use vehicle, or livery solely on the basis that it is being used for personal vehicle sharing if the annual revenue received by the vehicle’s owner that is generated by personal vehicle sharing does not exceed the annual expenses of owning and operating the vehicle. That includes, but is not limited to, depreciation, interest, lease payments, automobile loan payments, insurance, maintenance, parking, and fuel, and the fact that the personal vehicle sharing is conducted pursuant to a personal vehicle sharing program.
The bill defines a personal vehicle sharing program as a legal entity qualified to do business in the state that facilitates personal vehicle sharing. The bill requires a personal vehicle sharing program, among other things, during all times that the vehicle is engaged in personal vehicle sharing, to provide insurance coverage, and collect, maintain, and make available to the vehicle owner and the vehicle owner’s primary automobile liability insurer verifiable electronic records identifying the date, time, initial and final locations of the vehicle, and miles driven when it is being used as part of the personal vehicle sharing program.
The Act limits the circumstances under which the vehicle owner’s automobile liability insurance can be subject to liability, and requires that automobile insurance policies not be canceled, voided, terminated, rescinded, or not renewed solely on the basis that the private passenger motor vehicle has been made available for personal vehicle sharing. It authorizes the insurer of the vehicle to exclude any and all coverage afforded under the vehicle owner’s automobile insurance policy while the vehicle is used by a person other than the owner as part of a personal vehicle sharing program, and provides the primary and excess insurers of owners, operators, and maintainers of the vehicle with the right to inform the insured that it has no duty to defend or indemnify any person or organization for liability for any loss that occurs during use of the vehicle in a personal vehicle sharing program.
Submitted as:
Status: Enacted into law in 2010.

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