Texas House Bill HB113

Texas 2021 - 87th Regular

Caption

Relating to peer-to-peer car sharing programs.

Impact

The bill is expected to have a notable impact on existing state laws related to automobile insurance and liability. It clarifies the insurance requirements during the car sharing period, including coverage for bodily injury and property damage for the owners and drivers. This shift in liability framework could reshape how insurance companies view policies for shared vehicles and necessitate adjustments in how they operate concerning indemnity and coverage exclusions.

Summary

House Bill 113 introduces regulations for peer-to-peer car sharing programs in Texas. The bill establishes standardized definitions pertinent to the car sharing process, laying out the rights and responsibilities of both owners and drivers involved in car sharing agreements. One significant aspect of the legislation is the mandate for these programs to ensure that vehicles available for sharing are not under safety recalls, thus enhancing road safety standards. The legislation aims to facilitate the growth of the peer-to-peer car sharing market while ensuring consumer protection.

Sentiment

General sentiment surrounding HB 113 is supportive, particularly among proponents of car sharing initiatives and businesses involved in the sharing economy. Many stakeholders view it as a progressive move that will foster innovation and provide clearer guidance for car sharing operators. However, there are concerns about potential liability issues and the implications for traditional insurers, which some critics argue could lead to higher costs for consumers in the long run.

Contention

One of the key points of contention lies in the balance between consumer protection and operational flexibility for car sharing programs. Critics worry that stringent liability assumptions could lead to increased operational costs, hindering the growth of the peer-to-peer market. Moreover, the carve-outs regarding vehicle ownership and the conditions under which insurance can be excluded may create confusion or legal loopholes that affect both drivers and vehicle owners.