Peer-to-Peer Car Sharing Law

Understanding The Bill

Over the years, drivers under Uber, Lyft, and many others have not been successful with these apps. California legislature approved Assembly Bill 5, back in the year 2019, requiring app-based companies like Uber, Lyft, and Doordash treat workers as employees. It's aim is to make it harder for companies to classify workers as independent contractors rather than employees. This bill on a 2018 California Supreme Court decision, Dynamex Operations West, Inc. v. Superior Court of Los Angeles, establishes the "ABC test" for determining whether a worker is an independent contractor or an employee. Workers must be an employees instead of contractors if a company retains control over how they perform their tasks or if their work is part of a company’s regular business. California will become the first state to require app-based companies/gig-economy to treat workers as employees. Overall, AB 5 marked a pivotal shift in California's approach to worker rights, particularly within the gig economy, and its influence continues to shape debates about labor classification in the state and beyond

Will Uber/Lyft Drivers Be Able to Set Their Own Scheduling?

Accordingly, some experts say that nothing in Assembly Bill 5 will require employees to work set shifts, meaning that Uber and Lyft legally have to allow drivers to make their own scheduling decisions. This California Bill is to better help employees for Uber and Lyft, and other third party companies that offer delivery services for food, groceries, and or client transportation. Also see Uber Insurance Explained

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?

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.

Turo's Insurance Coverage for Bodily Injury and Property Damage to Third Parties

According to the Turo website, Turo's insurance coverage for bodily injury and property damage to 3rd parties is as follows:

• Bodily injury and property damage to third parties:
• • The Liberty Mutual Policy insures guests against liability to third-parties for bodily injury and property damage resulting from the use of the booked vehicle during the booked trip, up to the minimum liability coverage required by state law. This coverage cannot be declined. Note, however, that it does not apply to vehicles that are booked on Turo from a Commercial Host.