​Overview: A peer-to-peer car sharing program lets a car owner share their car with another driver for a fee. The car sharing arrangement is set up through an on-line program or platform, and requires both the car owner and user to enter into a car sharing agreement with the peer-to-peer car sharing program. Currently, peer-to-peer car sharing companies in Maryland include but are not limited to Turo, Collaborent, or Getaround.

Maryland law requires that either the vehicle owner, the driver sharing the car, the peer-to-peer car sharing program, or any combination of the three, maintain auto insurance which will cover the shared driver’s use of the car and has coverage limits equal to or greater than the minimum amounts required by law. Some insurance policies may exclude coverage for use by a shared driver of a vehicle through a peer-to-peer car sharing program. Additionally, Maryland Auto Insurance, the insurer of last resort for high risk drivers, is not required to cover drivers who list their car on a peer-to-peer car sharing program. So even if you have auto insurance, it is a good idea to read the terms of your policy before entering into a car sharing agreement and to make sure another policy will cover the use if your policy doesn’t. Maryland law also makes the peer-to-peer car sharing program liable for damages in certain situations.

So what happens if the person you authorize to drive your car through a peer-to-peer car sharing program has an at-fault accident while they are driving your vehicle? It depends upon the terms of the insurance policy that covers the shared vehicle’s driver. Generally, if the policy does not exclude such use, the auto insurance covering the person driving your shared car through a peer-to-peer car sharing program arrangement will be liable up to the coverage limits. If the driver of the shared car is uninsured, or improperly insured, generally the peer-to-peer sharing program will be liable up to the limits the parties agreed to in the car sharing agreement; if the program is liable, the amount of coverage must be equal or greater than the minimum liability coverages required by Maryland law.

Are you interested in sharing your vehicle through a peer-to-peer car sharing program? Before you do, it is a good idea to make sure that your automobile insurance policy covers that use for your car. Otherwise, your auto insurer may deny, cancel, terminate or non-renew your personal auto policy solely because your car is available through peer-to-peer car sharing.

Steps to Take: If you are considering participating in a peer-to-peer car sharing program, here are some steps you can take to protect yourself:

1. Ask your insurer if your current policy covers peer-to-peer car sharing, and, if not, ask if they offer this coverage;
2. If you are making payments on your automobile, check with your lender or lessor to see if they permit you to share your vehicle to others through a peer-to-peer car sharing program under your loan or lease agreement; and,
3. Before you sign an agreement with a peer-to-peer car sharing program, understand what insurance the car-sharing program offers, including the deductible, and the maximum payout.

Important Tips:

​■ Be Honest: Tell your insurer about any changes in how you use your car. If you don’t, your claims might be denied or your policy cancelled.

■ Talk to Your Insurer: Discuss with your insurance producer (agent or broker) how you plan to use your car.

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