The rise of the app-based sharing economy has led to many insurance challenges. States like California have taken steps to protect consumers. From homesharing to ridesharing, the U.S. population is embracing the sharing economy. People frequently rent cars through platforms like Turo or use ridesharing services such as Uber and Lyft.
California Public Utilities Commission Regulating Ridesharing
California was the first state to regulate ridesharing services. It requires companies to obtain a license from the California Public Utilities Commission, provide a minimum of $1 million in insurance, conduct vehicle inspections, and offer driver training programs.
Liability Issues with Rental Sharing Economy Apps
When an accident occurs involving a vehicle rented through an app like Turo, liability issues may arise. California’s AB 1871 bill specifically addresses liability for car-sharing. Under this law, Turo is considered the vehicle owner during the rental period. The law also prevents your insurance company from canceling your policy due to participation in car sharing.
Is Turo Liable for Insurance Purposes During the Rental Period?
The AB 1871 bill makes Turo liable for insurance instead of your personal coverage. Once the $1M insurance limit is exceeded, Turo becomes responsible. Turo must also indemnify you in any civil action, replacing your personal insurance unless the incident results from willful negligence. Turo’s Third-Party Automobile Liability Insurance includes property damage claims and Uninsured/Underinsured Motorist (UIM/UM) coverage.
California Turo Car Rental Accident Lawyer
If you’re involved in a peer-to-peer car rental accident in California, contact our experienced Turo car rental accident lawyer. Our attorneys have extensive experience securing significant settlements from insurance companies known for denying claims. We’ll thoroughly review your case to gather the necessary evidence. To schedule a free consultation, call KAASS LAW at (310) 943-1171 or contact us via our online appointment form.
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