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Insurance Issues with App-Based Sharing Economy

Insurance Issues with App-Based Sharing Economy

Insurance issues rising with the ever growing app-based sharing economy which has promoted many insurance issues. Many states such as California have taken action to aid in consumer protection. From homesharing to ridesharing, it seems that the U.S. population is sharing everything. Many people rent cars to commute from places to place from companies such as Turo, or use ridesharing app such as Lyft or Uber.

California Public Utilities Commission Regulating Ridesharing

California was the first state to regulate ride-sharing services by requiring California Public Utilities Commission licenses, a minimum of $1 million in insurance, vehicle inspections, as well as driver training programs. 

Liability Issues with Rental Sharing Economy Apps

There are a number of liability issues that can arise when someone is involved in an accidents which involves vehicles which are rented with a car rental apps such as Turo. The passing of California AB 1871 bill specifically addresses liability question for car sharing, for all intents and purposes related to liability, Turo would be considered the owner during the rental period. The law also further prevents your insurance company from canceling your policy because you participate in car share.

Is Turo Liable for Insurance Purposes During Rental Period?

California AB 1871 bill further makes Turo liable instead of your personal insurance. Turo would not only be liable after the $1M insurance is exceeded, but they are legally required to indemnify you of any civil action as well as take the place of your personal insurance outside of willful negligence. Turo Third-Party Automobile Liability Insurance further includes coverages for property damage claims and UIM/UM insurance claims.

California Turo Car Rental Accident Lawyer

If you were involved in an peer-to-peer sharing auto accident in California we invite you to hire our dedicated California Turo car rental accident lawyer today. Our skilled accident attorneys leverage their considerable experience into obtaining significant settlements from insurance companies who are known for being reluctant to pay out on claims. You can rely on our experienced lawyer to carefully analyze the facts of your case to prove the facts necessary. To schedule a free consultation with one of our peer-to-peer sharing app lawyers, call Kaass law today at (310) 943-1171 or send us an email through our online appointment form.


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