Insurance, taxes prevail in car-sharing negotiations: New Jersey Monitor

Insurance and tax talks dominated debate on Thursday over Congress’ first steps to regulate peer-to-peer car-sharing services.

Senate Commerce Committee, sponsored by Sen. Joe Cryan (D-Union), calls on companies managing peer-to-peer car-sharing to take insurance liability for vehicles rented using their platforms I testified on the bill.

Car-sharing companies allow car owners to rent out their vehicles to others when they are not in use. These companies, which the bill distinguishes from car rental companies, are already operating in New Jersey, but the lack of regulation often makes it unclear whose insurance is at stake after an accident. I have.

“Now it’s the Wild, Wild West. You’re suing everyone and the carriers are in denial. Where are the victims?” .

The measure would ensure that someone, such as a car owner, driver, or car-sharing company, has insurance, but there is some debate as to whether the coverage required under the bill will be sufficient. There were differences.

“Peer-to-peer companies should always be the primary insurance while a car is shared because most conventional auto insurance policies do not cover cars that are driven using peer-to-peer services.” New Jersey Law Association, legal advocacy group.

invoiceas written, car-sharing companies must only cover liability, personal injury, and underinsured and uninsured driver coverage up to state minimums. , tried to raise some of these limits. successful push This will increase the minimum amount of liability insurance for next year and 2026.

Lynch called for car-sharing companies to be required to provide liability coverage of at least $1.5 million. This is the same coverage required by rideshare services such as Lyft and Uber. Kenny Montilla, a lobbyist for car-sharing company Turo, said the bill would ban cars rented through car-sharing services from being used as taxis or other rental cars.

“What we love about this bill is that it guarantees no lapse in coverage, so no matter which party tries to sue, the driver of the shared vehicle, the owner of the shared vehicle, or the owner of the Coverage provided by the parties will apply if either party is uninsured or insufficiently insured on the platform,” said Montilla.

Bramnick fell short of supporting the $1.5 million limit, but argued that car-sharing companies should be required to provide more than a minimum liability coverage.

Car rental companies are also subject to the same restrictions, Montilla said, adding that car-sharing companies offer protection plans that offer additional coverage.

Car-rental companies that compete directly with car-share companies charge the same rates and taxes that are charged on car-rentals because their competitors offer the same services, even if they try to claim that the car-share company does not. Said I should pay.

Dean Thompson, Vice President of Finance, Enterprise Rent-A-Car, said: “We recommend you run Google and check Google Ads. You will see ‘Rent a perfect car’.” “Rental Now” is displayed. ”

New Jersey rentals are charged a daily domestic security fee of $5 in addition to sales tax levies. Car sharing companies pay sales tax, but not fees. They’re also exempt from airport fees and local taxes on car rentals charged in Newark and Elizabeth, Thompson said.

Lawmakers may find extended fees and taxes to car-sharing companies a tough pill to swallow. Residents may find it difficult to access new services.

“Recently I traveled out of state and had to rent a car for 5 days. No. This is very important for anyone starting out or struggling.”

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