What's happening
This bill establishes legal, insurance, tax, and consumer protection rules for peer-to-peer car sharing programs in New York State.
Why it matters
Insurance Clarity and Consumer Protection. The bill creates explicit insurance requirements for peer-to-peer car sharing, establishing that traditional personal auto insurance may not cover incidents during sharing periods and mandating that platforms provide clear, primary coverage. This helps prevent coverage gaps and ensures both car owners and renters know their legal and financial responsibilities.
Limits on Liability and Damage Claims. It sets detailed rules about when and how car owners and drivers can be held liable for damage, capping charges to “actual and reasonable” costs, requiring timely notifications, and giving drivers specific rights to dispute damage claims. This helps protect consumers from surprise charges or unfair assessments, and standardizes how disputes are resolved.
Non-Discrimination and Equal Access. The bill prohibits peer-to-peer car sharing platforms from discriminating based on age (over 18), race, religion, gender, disability, credit card ownership, or geographic location within New York. This expands access to car sharing, especially for those who might otherwise face unfair barriers (e.g., younger drivers, people without credit cards).
Safety and Transparency Requirements. Platforms must routinely check for vehicle safety recalls, verify drivers’ licenses, provide clear disclosures about rates and fees, and ensure customers are aware of their rights (such as emergency contacts, insurance limitations, and the procedures for reporting damage or theft). This boosts public safety and consumer confidence in using peer-to-peer car sharing services.
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Who cares
Headline styles
Legalize Peer Car Sharing
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
24 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5995
2019-2020 Regular Sessions
IN SENATE
May 16, 2019
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, the general business law, the tax law and the vehicle and traffic law, in relation to enacting the peer-topeer car sharing program act
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "peer-to-peer car sharing program act".
§ 2. The insurance law is amended by adding a new article 35 to read as follows:
ARTICLE 35
PEER-TO-PEER CAR SHARING PROGRAMS Section 3501. Definitions.
3502. Requirements for doing business.
3503. Program liability.
3504. Lien implications; notification.
3505. Exclusions for personal motor vehicle liability insurance
policy.
3506. Limitations on cancellation of coverage.
3507. Contribution against indemnification.
3508. Insurable interest.
3509. Group insurance for peer-to-peer car sharing programs.
§ 3501. Definitions. As used in this article, the following terms shall have the following meanings:
(a) "Peer-to-peer car sharing" shall mean the authorized use of a shared vehicle by an individual other than the vehicle's owner through a peer-to-peer car sharing program.
(b) "Peer-to-peer car sharing program" or "program" shall mean the institution, sole proprietorship or other entity or person that is responsible for operating, facilitating or administering the means,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11222-02-9
S. 5995 2
digital or otherwise, by which a business platform facilitates peer-topeer car sharing for financial consideration.
(c) "Peer-to-peer car sharing program agreement" or "agreement" shall mean the terms and conditions that govern the use of a shared vehicle through a peer-to-peer car sharing program.
(d) "Shared vehicle" shall mean a motor vehicle, owned and registered to an individual that is insured or subject to being insured under an owner's policy of motor vehicle liability insurance insuring a single individual, or individuals residing in the same household as the named insured, that is available for sharing through a peer-to-peer car sharing program.
(e) "Shared vehicle driver" shall mean an individual who has been authorized to use a shared vehicle under a peer-to-peer car sharing program agreement.
(f) "Shared vehicle owner" shall mean a registered owner of a shared vehicle made available for use by shared vehicle drivers through a peerto-peer car sharing program.
(g) "Peer-to-peer car sharing delivery period" shall mean the period of time during which a shared vehicle is being delivered to the location of the peer-to-peer car sharing start time, if applicable, as documented by the governing peer-to-peer car sharing program agreement.
(h) "Peer-to-peer car sharing start time" shall mean the time when the shared vehicle becomes subject to the control of the shared vehicle driver at, or after, the time the peer-to-peer car sharing period is scheduled to begin as documented in the records of a peer-to-peer car sharing program.
(i) "Peer-to-peer car sharing period" shall mean the period of time that shall commence with the peer-to-peer car sharing delivery period or, if there is no peer-to-peer car sharing delivery period, the period of time that shall commence with the peer-to-peer car sharing start time and, in either case, shall end at the peer-to-peer car sharing termination time.
(j) "Peer-to-peer car sharing termination time" shall mean the time when the shared vehicle is either returned to the location designated by the shared vehicle owner through a peer-to-peer car sharing program, or the shared vehicle owner or the shared vehicle owner's authorized designee shall take possession and control of the shared vehicle, and the earliest of the following occurs:
(1) the expiration of the agreed period of time established for the use of a shared vehicle in the governing peer-to-peer car sharing program agreement; or
(2) the intent to terminate the use of the shared vehicle is verifiably communicated by the shared vehicle driver to the shared vehicle owner using the peer-to-peer car sharing program.
§ 3502. Requirements for doing business. (a) No shared vehicle insured or subject to being insured by its registered owner pursuant to a policy of insurance subject to section three thousand four hundred twenty-five or article fifty-three of this chapter shall be classified as a commercial vehicle, for-hire vehicle, permissive use vehicle, taxi-cab or livery solely because its registered owner allows it to be used for peer-to-peer car sharing, as long as all of the following circumstances apply:
(1) the peer-to-peer car sharing is compliant with a peer-to-peer car sharing program as provided for in this article;
S. 5995 3
(2) the registered owner of the shared vehicle does not knowingly place the vehicle into use as a commercial vehicle or as a vehicle for hire by a shared driver while engaged in peer-to-peer car sharing; and
(3) the number of shared vehicles a single individual or individuals residing in the same household may enroll in any peer-to-peer car sharing program, or combination of programs, does not exceed four vehicles.
(b) A peer-to-peer car sharing program shall, during each peer-to-peer car sharing period for each shared vehicle that it facilitates the use of, do all of the following:
(1) Ensure financial security for the shared vehicle is maintained by the shared vehicle owner, the shared vehicle driver, the peer-to-peer car sharing program, or any combination of the aforementioned, in the form of:
(i) a policy of liability insurance that:
(A) recognizes that the shared vehicle insured under the policy is made available and used through a peer-to-peer car sharing program; and
(B) provides insurance coverage in amounts no less than the minimum amounts provided by section three hundred seventy of the vehicle and traffic law, article fifty-one of this chapter, and other laws of the state with respect to mandatory liability coverage, uninsured and underinsured coverage, and first-party benefits coverage as may be enacted from time to time; or
(ii) a financial security bond, financial security deposit, or qualification as a self-insurer as set forth is section three hundred twelve of the vehicle and traffic law;
(2) Offer shared vehicle owners comprehensive and collision protection for loss or damage to the shared vehicle during the peer-to-peer car sharing period as described in subsections (d), (e) and (f) of section three thousand five hundred nine of this article;
(3) Provide shared vehicle owners with suitable proof of compliance with the insurance requirements of this section, the requirements of sections three hundred eleven and three hundred forty-five of the vehicle and traffic law, and article fifty-one of this chapter, a copy of which shall be made available in the shared vehicle by the shared vehicle owner during the time the shared vehicle is engaged in peer-to-peer car sharing;
(4) Prohibit the shared vehicle from being operated for commercial use or as a vehicle for hire while the shared vehicle is engaged in peer-topeer car sharing;
(5) Provide the following for each shared vehicle driver, for each peer-to-peer car sharing period:
(i) an insurance identification card as defined in subdivision ten of section three hundred eleven of the vehicle and traffic law, or other documentation which shall be carried in the vehicle at all times during the peer-to-peer car sharing period and clearly demonstrates that the financial security referred to in paragraph one of this subsection is in full force and effect; and
(ii) a toll-free number, email address, or other such form of communication by which a law enforcement police officer, representative of the department of motor vehicles, or other officer of this state or any political subdivision thereof may confirm, in real time, that the financial security provided for in paragraph one of this subsection is in full force and effect;
(6) Require that vehicles made available for peer-to-peer car sharing through the program are limited to shared vehicles;
S. 5995 4
(7) Collect, maintain for a time period not less than the applicable statute of limitations on personal injury, and make available to the shared vehicle owner, the shared vehicle owner's personal motor vehicle liability insurer, the shared vehicle driver's primary automobile insurer, any excess or umbrella insurers, and any government agency as required by law, within ten business days of a request at the cost of the program, the following information pertaining to incidents which occurred during the peer-to-peer car sharing period:
(i) verifiable records of the peer-to-peer car sharing period for each shared vehicle, and to the extent available, verifiable electronic records of the time, initial and final locations of the vehicle, and miles driven; and
(ii) in instances where an insurance claim has been filed with a group insurer, any and all information relevant to the claim, including but not limited to, payments by the program concerning accidents, damages and injuries; and
(8) Ensure that the shared vehicle owner and the shared vehicle driver are given notice prior to the first use and first operation of a shared vehicle pursuant to a peer-to-peer car sharing program agreement that:
(i) during the peer-to-peer car sharing period, the shared vehicle owner's personal motor vehicle liability insurer may exclude any and all coverage afforded under its policy and the shared vehicle owner's insurer shall have the right to notify its insured that it shall have no duty to indemnify or defend any person or organization for liability for any loss that occurs during the peer-to-peer car sharing period; and
(ii) any financial security, or physical damage protection offered pursuant to paragraph two of subsection (b) of this section, provided by the peer-to-peer car sharing program may not be valid or collectible for damages or losses that occur outside of the peer-to-peer car sharing period.
§ 3503. Program liability. (a) Notwithstanding any other provision of law, or any provision in a shared vehicle owner's policy of motor vehicle liability insurance, in the event of a loss or injury that shall occur during the peer-to-peer car sharing period, the peer-to-peer car sharing program shall be deemed the owner of the shared vehicle and shall be liable for any bodily injury, death, or damage to property in amounts not to exceed those stated in the peer-to-peer car sharing program agreement and not less than those amounts set forth in section three hundred seventy of the vehicle and traffic law, and the peer-topeer car sharing program shall retain such liability irrespective of a lapse in the group policy or any other insurance policy under which the program is insured, or whether such liability is covered under the group policy or any insurance policy under which the program is insured.
(b) A peer-to-peer car sharing program shall be liable for a shared vehicle during the peer-to-peer car sharing period.
(c) If insurance maintained by a shared vehicle owner or shared car driver pursuant to paragraph one of subsection (b) of section three thousand five hundred two of this article has lapsed or shall not provide the required coverage, the peer-to-peer car sharing program shall provide financial security required by paragraph one of subsection (b) of section three thousand five hundred two of this article on a primary basis.
(d) A peer-to-peer car sharing program shall assume liability for a claim in which a dispute exists regarding who was in control of the vehicle when the loss occurred giving rise to such claim, and the shared vehicle owner's private motor vehicle insurer shall indemnify the peer-
S. 5995 5
to-peer car sharing program to the extent of its obligation under the applicable insurance policy, if it is determined that the loss occurred outside of the peer-to-peer car sharing period.
(e) In the event that the shared vehicle owner or the shared vehicle owner's personal motor vehicle insurer is named as a defendant in a civil action for a loss or injury that occurs during any time within the peer-to-peer car sharing period, or otherwise under the control of a peer-to-peer car sharing program, the peer-to-peer car sharing program shall have the duty to indemnify the shared vehicle owner and the shared vehicle owner's insurer subject to the provisions of paragraph two of subsection (a) of section three thousand five hundred one of this article.
(f) A motor vehicle liability insurer who defends or indemnifies a claim against a shared vehicle which is excluded under the terms of its policy shall have the right to seek contribution against the peer-topeer car sharing program or its insurer if the claim is:
(1) made against the shared vehicle owner or the shared vehicle driver for loss or injury which occurs during the car sharing period; and
(2) excluded under the terms of its policy.
(g) A peer-to-peer car sharing program may contractually assume the risk of loss due to physical damage to shared vehicles during the time that such shared vehicles are in the custody of the shared vehicle driver of peer-to-peer car sharing program, and that such assumption of risk:
(1) shall not be deemed to be physical damage insurance; and
(2) shall be provided under the terms set forth in section two hundred twenty-h of the general business law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, the general busi- ness law, the tax law and the vehicle and traffic law, in relation to enacting the peer-to-peer car sharing program act
Purpose or general idea of bill
To provide insurance coverage for vehicle owners and renters participat- ing in peer-to-peer car sharing programs, and to authorize the terms and conditions for the establishment and operation of such programs.
Summary of specific provisions
Section 1 establishes the short title: the "peer-to-peer car sharing program act."
Read the full memo (603 words)
Section 2 adds a new Article 35 to the Insurance Law to provide for the appropriate insurance coverage for participants in a peer-to-peer car sharing program. The NYS Department of Financial Services has barred peer-to-peer car sharing in New York until it is assured that there is appropriate coverage for all parties participating in a transaction for the rental of a personal motor vehicle through a peer-to-peer car shar- ing program. This article establishes the insurance requirements for doing business as a peer-to-peer car sharing program, the liability of the program, appropriate exclusions for the personal insurance of a shared vehicle owner and authorizes the issuance of a group policy or peer-to-peer car sharing.
Section 3 adds a new Article 12-C to the General Business Law to estab- lish peer-to-peer car sharing programs as a statutorily authorized busi- ness in New York and to provide operational terms and consumer protections appropriate to the rental of a vehicle through a peer-to- peer car sharing program. These include advertising and rate disclo- sures, limitations on the use of global positioning data, anti-discrimi- nation provisions of the GEL (§§ 391-g, 391-1 and 398-b), regulations for the sale and administration of optional damage waiver products consistent with the GEL (§ 396-z), and requirements to prevent the availability of vehicles with open safety recalls consistent with feder- al law. Additionally, it provides for the electronic, or digital, deliv- ery of all required consumer notices for any peer-to-peer car sharing program.
Sections 4 and 5 amend sections 1160 and 1166-a of the Tax Law, respec- tively, to apply the special tax and supplemental special tax on the rental of passenger cars expressly to peer-to-peer car sharing.
Section 6 amends sections 311, 312-a and 313 of the Vehicle and Traffic Law to make conforming changes with the provisions of new Article 35 of the Insurance Law.
Justification
Peer-to-peer car sharing presents consumers with a decidedly new way to rent motor vehicles while providing car-owners an opportunity to use existing resources more efficiently. And like ride-sharing and home- sharing, public policy should allow it to flourish and challenge the status-quo. However, new and innovative delivery methods should not obscure the fact that, at the end of the day, Uber and Lyft are for-hire car services, AirBNB and VRBO are property rental, and for-profit peer- to-peer car-sharing platforms are facilitating the rental of private passenger vehicles. Most jurisdictions have come to the conclusion that all business models need to operate under the same operational paradigm when they deliver the same end-product or service. This bill seeks to strike an appropriate balance by recognizing peer-to-peer car sharing programs and providing them with the insurance paradigm necessary to operate in the State. With the enactment of this legislation New Yorkers will be empowered to place their vehicles for rent through a program without fear of catastrophic liability exposure, while providing New York consumers with the same level of consumer protection that applies to any other vehicle rental transaction.
Prior legislative history
New Bill
Fiscal implications
None
Effective date
90 days after enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.