Peer-to-peer carsharing allows people to make money by sharing their cars with others. People who make use of these services can also avoid the many costs of owning or leasing a car. Peer-to-peer carsharing may also be good for the environment, as it decreases the number of vehicles on the road emitting greenhouse gases.
These services have grown in popularity in recent years. However, before you make use of peer-to-peer carsharing, it is important to know what to do after getting into a crash.
Do you know if your insurance would cover damages you suffered in the accident? If you were not in the peer-to-peer carsharing vehicle but the driver of that vehicle is responsible for the crash, will his or her own insurance or the vehicle owner’s insurance apply?
Below, our experienced Windsor vehicle accident lawyers discuss legal options after getting injured in a collision involving a peer-to-peer carsharing vehicle. If you were injured, you can contact our firm to learn how we may be able to assist you. An initial consultation with a lawyer is free and there are no upfront fees for representing you.
Contact Greg Monforton and Partners today: (866) 320-4770.
What is Peer-to-Peer Carsharing?
Carsharing is not the same as ridesharing. Ridesharing occurs when you drive your car and get paid for transporting one or more people from one place to another. Carsharing involves you allowing others to rent your car. The people who rent their vehicles out are called hosts.
The vehicle is either dropped off or picked up – the host and renter communicate with each other to figure out when the car can be picked up and dropped off.
There are a variety of benefits to carsharing for hosts, renters and the environment. Hosts can make money by allowing others to use their cars. Renters might not own vehicles so carsharing allows them to get a car when they need it. There are often fewer restrictions with carsharing compared to renting a car. By sharing a car instead of owning or leasing, users do not have as many costs as those who own vehicles.
Sharing cars also results in fewer cars being on the road, which means less greenhouse gas emissions that cause climate change. Carsharing also results in fewer miles driven, as those who rent carsharing vehicles usually travel fewer miles.
Insurance Coverage for Peer-to-Peer Carsharing Vehicles
If you are planning to allow your vehicle to be shared with other drivers through a peer-to-peer carsharing program, you should inform your insurance company. If you do not tell them and they find out later, they may try to cancel your policy. You do not want to be driving around without an insurance policy on your vehicle.
Do Vehicle Owner’s or Driver’s Policies Apply?
If you were driving a carsharing vehicle and got into an accident caused by another driver, you may be able to file a claim against their liability insurance, just as you would if you were in your own vehicle. Even though you were in a carsharing vehicle, the claim would likely proceed the same way it would if the crash involved two vehicles being driven by their owners.
However, things get more complicated if you were injured in a crash caused by the driver of the carsharing vehicle. His or her personal insurance is unlikely to apply, and the owner’s personal insurance is unlikely to apply. Renting a car through a carsharing program is considered a commercial activity, which means personal insurance is not applicable.
This is where coverage from the ridesharing company may kick in to cover damages from the crash, such as medical costs and damage to the vehicle.
Coverage From Carsharing Services
The Financial Services Commission of Ontario (FSCO) has approved auto insurance for three carsharing companies operating in the province: Outdoorsy, ShiftRide and Turo. The policies from these three companies cover passengers and vehicle owners during rental and delivery periods. Hosts and renters should contact these companies to determine when coverage kicks in.
Outdoorsy is a carsharing service for RVs, camper vans and travel trailers. Shiftride and Turo are carsharing services for passenger vehicles.
Shiftride has insurance coverage through Northbridge Insurance. Owners are covered the moment the renter comes to pick up the car. Coverage includes:
- Standard Accident Benefits
- $2,000,000 in third-party liability coverage – if the driver causes a crash, this coverage pays for damages suffered by the victim
- $1,000 deductible for perils
- Limit of $1,500 for transportation replacement
Turo has insurance through Intact Financial Corporation. There are three levels of protection: Premier, Standard and Minimum. All plans come with up to $2 million in coverage.
If you use another carsharing company that is not listed on the FSCO site, you need to find out if they have insurance and when it applies.
We Are Here to Help Ontario Crash Victims. Call Today
Car crashes can cause serious injuries that take a while to heal, and some injuries may never fully heal. Victims often hope the insurance company will provide fair compensation, not realizing insurers are incentivized to deny or underpay claims. There is another layer of complexity with claims involving carsharing vehicles.
That is why victims should seriously consider working with an experienced lawyer to pursue full compensation for their damages. Victims who work with lawyers often recover more compensation than those who do not.
We take cases on contingency, so there are no upfront fees. The initial consultation with a lawyer is also free.
Give us a call to learn more: (866) 320-4770.