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.
Turo third-party auto liability insurance is purchased through Turo and includes coverage for renters/guests under a third-party automobile liability insurance policy purchased from Liberty Surplus Lines, a Liberty Mutual Group company Said Liberty Mutual Policy provides guests with insurance coverage while they are driving the rented vehicle during the booked trip. The following covers information regarding Turo's California peer-to-peer car rental insurance coverage.
According to the Turo website, Turo's insurance coverage for bodily injury and property damage to 3rd parties is as follows:
According to the Turo website, Turo's insurance uninsured or underinsured Motorist (“UM/UIM") insurance coverage is as follows:
Protection plans made available by Turo also address the renters liability for any damage to the booked vehicle which may occur during the booked trip.
The person who rents out a car using Turo is responsible to return the booked vehicle on time and in the same condition as when they first received it. The renter is held financially responsible for all physical damage to the booked vehicle, as well as related costs, if any. If, for instance, there is physical damage to the booked vehicle during the period of the booked trip, the renter will be legally liable for the costs of repair, plus related costs, if any. If there is physical damage to the rented vehicle and the cost of repair exceeds 75% of the actual cash value of the vehicle, the renter will be legally liable for the actual cash value of the booked vehicle, plus related costs, minus the salvage value, if any.
If you were involved in an peer-to-peer sharing auto accident in California we invite you to hire our dedicated Los Angeles Turo accident and insurance 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.