OAIN: New Oregon Auto-Sharing Law Has Insurance Implications
Portland, OR, July 11, 2011 --(PR.com)-- Oregonians can soon get paid to loan out their private cars through sharing services—and those who don’t own can rent by the hour—thanks to a new law that lets people keep their insurance coverage even when they share their vehicles for a fee when they’re not driving, according to Online Auto Insurance News.
The state is set to become the second to allow “peer-to-peer” car sharing under the law, which takes effect Jan. 1.
The legislation, which means among other things that renters will not need to carry their own proof of insurance, sets standards that clear the way for private car sharing through service groups.
Under the new law, insurers are prohibited from excluding policyholders who provide use of their cars through sharing services. Laws in most states allow providers to cancel personal policies for customers who use their vehicles for commercial purposes.
The companies that broker rentals must provide liability coverage for rental vehicles at a minimum of 300 percent of the rate required under state law when the cars are being driven by renters.
Source: http://www.leg.state.or.us/11reg/measpdf/hb3100.dir/hb3149.en.pdf
Car-sharing services such as Getaround and RelayRides have been operating in California since a similar law took effect last year in that state. Renters pay by the hour or the day, with hourly rates as low as $5 for some vehicles, according to the companies.
Most rentals are booked online, and renters can use key cards or smart phones to access cars. Owners are paid by the service companies and are not liable for any damages by renters.
Sharing services say they give renters cheap transportation and can help owners keep up with expensive maintenance costs.
It costs about $8,500, on average, to own and operate a midsized sedan, according to a survey released earlier this year by AAA.
To learn more about this and other insurance issues, readers can go to http://www.onlineautoinsurance.com/proof/, where there are informative resource pages and a quote-comparison generator that can help visitors get quality coverage quickly.
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The state is set to become the second to allow “peer-to-peer” car sharing under the law, which takes effect Jan. 1.
The legislation, which means among other things that renters will not need to carry their own proof of insurance, sets standards that clear the way for private car sharing through service groups.
Under the new law, insurers are prohibited from excluding policyholders who provide use of their cars through sharing services. Laws in most states allow providers to cancel personal policies for customers who use their vehicles for commercial purposes.
The companies that broker rentals must provide liability coverage for rental vehicles at a minimum of 300 percent of the rate required under state law when the cars are being driven by renters.
Source: http://www.leg.state.or.us/11reg/measpdf/hb3100.dir/hb3149.en.pdf
Car-sharing services such as Getaround and RelayRides have been operating in California since a similar law took effect last year in that state. Renters pay by the hour or the day, with hourly rates as low as $5 for some vehicles, according to the companies.
Most rentals are booked online, and renters can use key cards or smart phones to access cars. Owners are paid by the service companies and are not liable for any damages by renters.
Sharing services say they give renters cheap transportation and can help owners keep up with expensive maintenance costs.
It costs about $8,500, on average, to own and operate a midsized sedan, according to a survey released earlier this year by AAA.
To learn more about this and other insurance issues, readers can go to http://www.onlineautoinsurance.com/proof/, where there are informative resource pages and a quote-comparison generator that can help visitors get quality coverage quickly.
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Contact
Online Auto Insurance
Benjamin Zitney
909-784-2475
http://www.onlineautoinsurance.com/
Benjamin Zitney
909-784-2475
http://www.onlineautoinsurance.com/
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