This is just in from Assemblymember Dave Jones' office in Sacramento. Passage of bill now depends on Gov. Arnold Schwarzenegger's approval or veto. Decision due before September 30th.

Dave Jones’ first-in-the-nation carsharing insurance bill passes Californialegislature, awaits Governor’s signature or veto

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

(SACRAMENTO) – 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 awaits Gov. Arnold Schwarzenegger’s signature or veto.

Assemblymember Dave Jones (D-Sacramento) authored Assembly Bill 1871 to allow personal car sharing 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 and the Sierra Club of California, transit districts like BART, and car sharing and personal vehicle sharing organizations across the nation such as City CarShare, Spride, Gettaround, RelayRides, Go-op Inc. and The bill has no opposition.  

Today’s vote on AB 1871 in the State Assembly was 52-0 (votes could increase by the end of the day); yesterday’s State Senate vote was 35-0. Gov. Arnold Schwarzenegger has until September 30 to sign the bill into law or veto it.

Teaser image by bartmaguire.

Neal Gorenflo


Neal Gorenflo | |

Neal Gorenflo is the co-founder and board president of Shareable, an award-winning nonprofit news, action network, and consultancy for the sharing transformation. An epiphany in 2004 inspired Neal to

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