Wisconsin Senate Bill SB386

Wisconsin 2023-2024 Regular Session

• Introduced: 8/9/23
• Refer: 8/9/23
• Report Pass: 2/26/24
• Failed: 4/15/24

Caption

Requirements for and insurance related to peer-to-peer motor vehicle sharing programs. (FE)

Impact

The introduction of SB386 aims to regulate the burgeoning industry of peer-to-peer vehicle sharing, thus providing a legal framework that can enhance consumer confidence in the safety and insurance aspects of such arrangements. By defining insurance responsibilities clearly, the bill seeks to protect both vehicle owners and drivers using these platforms. Moreover, it requires sharing programs to disclose necessary information about insurance coverage and associated costs to vehicle owners and drivers, promoting transparency in transactions.

Summary

Senate Bill 386 establishes requirements and insurance prerequisites for peer-to-peer motor vehicle sharing programs in Wisconsin. The bill mandates that sharing programs must assume liability for bodily injury or property damage to third parties during the duration of the vehicle sharing. This assumes coverage amounts specified in the sharing agreement, which must meet or exceed minimum state insurance requirements. Importantly, the bill states that such programs are not considered traditional vehicle rental organizations, thereby exempting them from certain local rental taxes if the appropriate sales taxes have been paid on the shared vehicle.

Contention

One potential point of contention in the bill relates to the liability exemptions granted to peer-to-peer motor vehicle sharing programs in line with existing federal laws. These exemptions imply that shared vehicle owners may not always be held accountable for incidents that occur while their vehicles are being used through these programs unless there is evident negligence involved. Critics might argue that this could create a lack of accountability and raise concerns regarding the safety of shared vehicles, particularly in cases of disputes related to insurance coverage during and after the sharing period.