Carsharing just took a step forward on June 3rd in California when AB1871 passed the Assembly with zero opposition. The bill now goes to the Senate and could become law before the year is out. We talked about the potential for this bill to accelerate the already fast growing carsharing industry here.

Below is the press release by California Assemblymember Dave Jones who is spearheading the bill. You can voice your support for the bill at peer-to-peer carsharing startup Spride Share’s petition page here.

Personally, I live in California and can’t wait for the bill to pass. We’ve just gone to a one car family. I’d love to have the flexibility to rent a neighbor’s car.

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Assemblymember Jones’ Carsharing Insurance Bill Passes Assembly Floor with Strong Bipartisan Support

Individuals could share their vehicles in carsharing fleets without risking their auto insurance

(SACRAMENTO) –The State Assembly today approved first-in-the-nation legislation allowing Californians to share their personal cars in carsharing pools without risking the loss of their personal auto insurance coverage.

Assemblymember Dave Jones (D-Sacramento) authored Assembly Bill 1871 in order to help expand carsharing by ensuring that individuals who allow their cars to be used in vehicle sharing pools do not risk losing their own automobile insurance coverage.  Currently, receiving even a small amount of money for the use of one’s vehicle is treated by insurance companies as a commercial use of the vehicle, thereby invalidating the individual’s personal insurance coverage.

This bill makes clear that personal vehicle sharing does not constitute a commercial use of the vehicle.  The bill also makes sure that the individual car owner is not held liable for losses that arise when the vehicle is used for personal vehicle sharing.

”Owning a car can be expensive and vehicle sharing programs are a great way to help connect people with cars when they need them,” said Assemblymember Dave Jones. “The bill will help car owners shrink the cost of owing their vehicles, reduce the need for some people to buy cars, improving parking and traffic congestion, and help the environment.”

AB 1871 has enjoyed widespread support from environmental groups such as the Environmental Defense Fund, Sierra Club of California, American Planning Association of California and Community Action to Fight Asthma.

This bill has also received broad support from car sharing and personal vehicle sharing organizations across the nation such as City CarShare, Spride, Gettaround and RelayRides, based in Massachusetts.  The bill has no opposition.

AB 1871 was approved with a bipartisan, unofficial vote of 63 to 0; more members may add on their votes in support of the bill.  AB 1871 will now moves to the State Senate for consideration.

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Teaser credit: Credit: Brian Stockle