What is car sharing and how does it work
Written and Reviewed by Michael Agruss
- Managing Partner and Personal Injury Lawyer at 844SeeMike.
- Over 20 years of experience in Personal Injury.
- Graduated from the University of Illinois Chicago School of Law: Juris Doctor, 2004.
The Illinois Department of Insurance (IDOI) defines car sharing as “the short-term use of a vehicle for which compensation is exchanged through a membership-based organization.” Companies like Turo and Getaround are examples of car share services in Illinois.
In a car sharing setup, owners typically rent the cars by the hour or day or by mileage. This is deemed more convenient than traditional rental services, as vehicles may be available in a short time’s notice. However, despite the convenience and the income-earning potential, there may be caveats in using your vehicle for car sharing:
- You may be held accountable for accidents during the rental period
- You may be denied insurance, including legal defense, if participation in the service was concealed
- Your policy may be canceled entirely if it doesn’t cover car sharing and similar activities
The State of Illinois aims to protect consumers by providing information about car sharing, opening their office to related queries, and monitoring insurance markets. If you have any questions on car sharing and similar topics, the IDOI encourages you to call their toll free hotline 866-446-5364.
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