WA Changes Its Stance On Car Sharing Programs

With times being tough, some companies have decided that they would offer sharing programs for people who own vehicles. The way that these programs work is that a driver who owns their vehicle can rent it to another driver. Most car insurance companies frown on this and even have canceled some car insurance policies of drivers who engage in this practice.
Now in the state of Washington, a change has evolved. Now drivers will be able to rent out their vehicles without having to be afraid that their auto insurance companies will drop them from their policies. The state passed a law which makes it illegal for insurance companies to do this. The bill is called HB2384 and the governor has already signed it into law already which shows how much support was behind the measure.
Many people have a hard time affording not only their car payment and insurance premiums but their car gas bills as well. By this law being passed, cash strapped drivers in the state will be able to work in conjunction with companies such as Relay Rides to be able to make money off of renting out their vehicles.
Many unemployed people will be able to take advantage of this development. It can be hard to be able to make your car payment each month when you have to pay your rent or mortgage, utility bills, and other expenses on an unemployment check alone. Politicians have said that the bill will have a lot of benefits for everyone. Financially, people will be able to make money off of their vehicles, drivers can save money on renting cars by the hour, and society as a whole might improve because of the bill.
Many people especially drivers under the age of 25 cannot afford their own vehicle. Times are tough and many financial lenders are not extending lines of credit for people who have little or no credit history. If people can rent cars, then they can save money for a car and still get around.
The environment will also benefit as well. If people are renting vehicles from other drivers, then there will be fewer vehicles on the road. This reduces exposure to toxic chemicals from car exhausts and helps the air be cleaner. Many environmental activists threw their support behind the bill. With thousands of people being unemployed in the state, it just makes fiscal sense for the bill to have been passed.
The liability for the automobile accidents will still fall on the registered vehicle owner. This is why it is important to make sure that you have enough auto insurance coverage if you intend to rent out your vehicle for profit. It is a good idea to team up with a company who will provide you with legal rental contracts because you want to make sure that you have covered all of your bases.
This move by the state is a bold one because many auto insurance industry insiders were against the bill because it could lead to more insurance claims being filed which would cost them more money. The more drivers who operate one vehicle, the more risk there is that an insurance claim will need to be filed.
California and Oregon have created similar bills. Most people support them because of the high unemployment rates in the state. The more money that these vehicle programs produce, the more taxes that the state can collect from the drivers who are involved in the programs.
It is a good idea for people to really weigh the risks and benefits of renting out their vehicle. A car is a 2,000 pound moving machine that can travel at very high speeds. When you decide to turn over the keys to someone else, you never know what you are getting yourself into. For example, you could rent your car to a 21 year old young male driver who is a speed demon and loves to text while driving. If that young driver gets involved in an automobile accident then your insurance premiums will soar.
When this happens, the costs of renting out your vehicle may far exceed your financial benefits. It is a good idea to use a company who can sift through renters and make sure that their driving records are clean so that you can minimize your overall risk. Never just rent your car to someone that you do not know because your car could end up being stolen by a criminal.
Washington’s new law is one that will impact both drivers and auto insurance companies alike. It stands to reason if car insurance premiums will increase if more automobile accidents happen as a result of the rental process. Hopefully, in one year, the state will be able to see if this was a sound decision or a huge mistake.