NAMIC Opposes New York Car-Sharing Bill
INDIANAPOLIS, June 19, 2014 /PRNewswire-USNewswire/ -- State legislation proposed in New York to regulate car-sharing programs would likely result in lawsuits arising out of disputes over coverage, according to the National Association of Mutual Insurance Companies. As a result, NAMIC is opposed to the bill, A.8007B.
The rise of formal car-sharing programs throughout the United States has uncovered numerous insurance-related challenges, notably over the role of the car owner's personal insurer and what exposure it may have. Under a car-sharing program, the vehicle owner allows his car to be rented by others when he is not using it.
"With a car-sharing program, an insurer lacks important information for gauging the risk," said John Murphy, NAMIC's state affairs director for the Northeast. "Car sharing is essentially a commercial enterprise, and the personal auto carrier should not be required to cover a risk that it never intended to cover."
According to Murphy, it is critical that the insurer of any car involved in a car-sharing program has the freedom to decide whether it wants to underwrite the vehicle, exclude any damage resulting from such use, and cancel or non-renew any vehicle that participates in a car-sharing program. Murphy also noted that New York has a competitive auto insurance marketplace and it's likely that some carriers will develop insurance products for the car-sharing market.
"Unfortunately, the insurance provisions in this bill lack sufficient clarity and will likely result in unnecessary coverage disputes and consumer confusion," Murphy said.
The 1,400 NAMIC member companies serve more than 135 million auto, home and business policyholders and write more than $196 billion in annual premiums, accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market.
Lisa Floreancig
State Affairs Director, State & Policy Affairs
[email protected]
317.875.5250
SOURCE National Association of Mutual Insurance Companies
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