California Governor Arnold Schwarzenegger signed Bill 1871 into law last week – and some drivers are ecstatic!
The bill allows state vehicle owners to rent out their cars to strangers without violating the conditions of their vehicle insurance policies. (Like Ontario, California vehicle standard policies preclude the renting of private passenger vehicles.)
And effective September 30th a new program has emerged to handle the logistics of renting cars. The trial service has already started in the San Francisco Bay area.
The initiative is seen as an obvious way to reduce the cost of vehicle ownership and operation. It is estimated that an owner renting out their sedan for 20 hours a week could pocket $4,000 a year.
In addition, it is argued that vehicle owners and those who rent them may reduce their carbon footprint, as vehicle usage will be a more planned and intentional event. And the program is seen as providing increased access to transportation for those who cannot afford to purchase a vehicle.
Vehicle owners will install in their cars, a piece of hardware to allow access and to track relevant metrics (mileage, time, vehicle performance). If damaged in an accident, the program provides supplemental insurance.
Owners indicate their vehicle’s availability on a website, accessible by smart-phone for those wanting to rent.
The program employs the tag-line, “don’t work for your car. Make your car work for you!”
Would you want to see this in Canada? The accompanying risks are significant!!
Tags: Automobile, car, claims, coverage, driving, economy, insurance, Liability, ontario, rent, rental, renting, risk, safety
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steve
October 6, 2010 at 11:32 am
I’ve heard of this in the UK. Sounds great…but risky. Wouldn’t want to think of renting my car to someone who then uses it in a crime – probably with false identification. How would this be safe guarded against? Perhaps it has already been dealt with in some manner, i’m just not sure.
M.R.
October 7, 2010 at 11:36 am
I myself would not like to see this in Canada. I believe that the vehicle drivers could care less about the vehicle they are using, which might result in more accidents.
pl
October 8, 2010 at 9:59 am
I would not like to see this in Canada. I believe this would create such a hugh expense for insurance companies who would have to pay any claims to the owner or renter of the vehicle. Are not premiums based on your safe driving record? What control would there be on renting vehicles to unknowns.
Harry
October 8, 2010 at 10:11 am
How would someone measure the risk on something like this? It sounds like a colossal waste of time and tax payer money. What if I rent my vehicle to someone who commits a crime, or a horrible accident happen? Would my name be drawn into a most likely public spectacle? I hope this doesn’t come to Ontario any time soon.
HG
October 8, 2010 at 1:57 pm
I personaly would not like to see this happen in Canada. Yes you can make money but the expense on the vehicle would be higher.
jp
October 12, 2010 at 11:39 am
I definitely would not participate in this program if it did come to Canada.
se
October 12, 2010 at 2:15 pm
I would not like to see this in Canada at all. I can’t imagine what a legal and insurance mess this would cause in the event of an accident.
Brian
October 13, 2010 at 9:18 am
Would do it in a heart beat – great idea. Great use of my under-utilized asset.
LR
October 13, 2010 at 4:04 pm
I would not like to see this in Canada. Premiums are based on driving records. I think there would be more accidents as the other drivers would not care.
KH
October 14, 2010 at 8:34 am
It would be very difficult for insurance companies to keep tabs on who is driving the vehicle, and assessing their risk