Peer-to-Peer Car Sharing Legislation Awaiting Executive Action

The peer-to-peer car sharing industry is relatively new and continuing to grow in Wisconsin and the greater United States. The concept is simple: just like platforms now let you rent out your home, platforms have emerged that are allowing users to rent out their cars. For those that rent their cars, they are earning extra cash when their cars are not in use. On the renter’s end, this allows for the renting of vehicles that are not typically available through rental car companies and to rent cars at a cheaper rate for short periods of time.

Though this is innovative technology, this new industry creates a plethora of questions when it comes to the structure of insurance throughout these transactions.  To address these various uncertainties, Assembly Bill 395 was authored by Representative Cindi Duchow and Senator Rob Stafsholt based on the National Conference of Insurance Legislators (NCOIL) model bill. This legislation requires that the peer-to-peer car sharing platforms ensure that prospective renters are covered by insurance that does not exclude peer-to-peer car sharing and specifies how that insurance functions during the transaction. The legislation also requires car sharing platforms to ensure that their renters are licensed and requires the platform to check for recalls on vehicles prior to them becoming available for rental.

In late February, the Wisconsin State Assembly passed Assembly Bill 395, and on the last day of session earlier this month, the legislation passed the Senate.

Currently the legislation is awaiting action by the Governor, and we have sent a letter urging his signature. PIA supports the passage of the legislation to create certainty in statute for the insurance coverage during these transactions, removing room for potential litigation.