Texas Senate Bill SB2106

Texas 2021 - 87th Regular

Caption

Relating to peer-to-peer car sharing programs.

Impact

The bill significantly impacts state laws pertaining to automobile insurance and liability. It mandates that both owners and drivers involved in car sharing are covered by suitable automobile liability insurance, with specific requirements outlined for the extent of this coverage. Additionally, the act specifies that peer-to-peer car sharing programs cannot deny insurance coverage based on a driver’s prior coverage situation, thereby ensuring comprehensive protection for all parties involved during a car sharing agreement. This could lead to enhanced consumer confidence in car sharing services, potentially fostering increased usage and market expansion.

Summary

SB2106 introduces regulations for peer-to-peer car sharing programs in Texas, aimed at formalizing and standardizing the operational framework for these services. The bill establishes definitions for key terms such as 'peer-to-peer car sharing,' 'shared vehicle,' and 'car sharing period,' providing clarity to both users and providers. It includes provisions that require insurance coverage during the car sharing period and specifies that the peer-to-peer programs must maintain primary liability for claims related to injuries or damages occurring during this timeframe. This regulatory framework is intended to facilitate the growth of the peer-to-peer car sharing market while protecting consumers and owners.

Contention

Some points of contention surrounding SB2106 include concerns from traditional car rental companies about competitive equity, as peer-to-peer services may have an advantage due to differing regulatory burdens. Critics argue that the bill could undermine existing insurance norms and create confusion over liability arrangements in case of accidents. Furthermore, there are implications for statutes beyond this chapter, as the legislative changes could affect regulations related to motor vehicle ownership, use, and business operations within the shared mobility sector.