AB 2743: Insurance: personal vehicle sharing.

Existing law generally regulates classes of insurance, including automobile liability insurance. Existing law prohibits classifying a private passenger motor vehicle as a commercial vehicle, for-hire vehicle, permissive use vehicle, or livery solely because its owner allows it to be shared, if specified criteria are met, including if the annual revenue received by the vehicles owner generated by the personal vehicle sharing of the vehicle does not exceed the annual expenses of owning and operating the vehicle.

Existing law requires a personal vehicle sharing program, for each vehicle that it facilitates the use of, among other things, to provide insurance coverages for the vehicle and operator of the vehicle that are equal to or greater than the insurance coverages maintained by the vehicle owner, but no less than 3 times the minimum coverage amounts for private passenger vehicles.

Existing law requires an owner or operator of a motor vehicle, or an owner of a vehicle used to transport passengers for hire not regulated by the Public Utilities Commission, to maintain liability insurance coverage for the named insured and any other person using the vehicle with permission in the amount of $15,000 for the bodily injury or death of any one person, $30,000 for the bodily injury or death of all persons, and $5,000 for damage to the property of others resulting from any one accident. Existing law increases these minimum amounts to $30,000, $60,000, and $15,000, respectively, on January 1, 2025.

This bill would require a personal vehicle sharing program to provide, instead, insurance coverages for the vehicle and operator at a minimum of $45,000 for bodily injury or death for one person, $90,000 for bodily injury or death for all persons, and $15,000 for property damage, and, on and after January 1, 2031, to provide liability coverage at least 3 times the minimum insurance requirements for private passenger vehicles. The bill would require a personal vehicle sharing program to disclose to a vehicle owner and any person that operates the vehicle specified information, including the minimum mandatory coverage and limits that the personal vehicle sharing program is required to provide and the coverages and limits provided. The bill would require a personal vehicle sharing program to disclose in writing specified information to the vehicle owner, including that the vehicle owners personal automobile insurance may expressly exclude coverage for the vehicle while it is being operated pursuant to a personal vehicle sharing program. A violation of these requirements would make a person liable for a specified civil penalty.