Oregon Senate Passes Car Sharing Bill

June 7, 2011

In a seeming effort to encourage green behavior, Oregon senators have approved a bill that would remove some of the barriers to developing community car sharing programs.

House Bill 3149 establishes standards for personal vehicle sharing programs, and requires personal vehicle sharing program to provide motor vehicle liability insurance, and assume liability in event of loss or injury for periods when vehicle is in use by program. However, the bill would prevent insurers from canceling an owner’s personal vehicle policy or reclassifying a private passenger vehicle as a commercial vehicle when it is used in a personal vehicle sharing program.

Typically, if a person borrows someone else’s car and gets into an accident, the car owner’s insurance rates are affected. However, HB 3149 would allow the car sharing program to assume all liability of the vehicle owner and shall be considered the vehicle owner for all purposes. The car-sharing service and vehicle owner would split the rental fee paid by the vehicle user. California passed a its own car sharing bill in 2010.

HB 3149 is now headed back to the House to review amendments made in the Senate.

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