SB 168 – Regulating Peer to Peer Car Sharing – Passes Senate

The Senate moves fast. This bill was introduced on June 3, and it’s already been passed. It passed unanimously, 21-0, but it’s been placed in the Administration Committee in the House, so that might be the speed brake.

Senate Bill 168 would encourage wider adoption of peer-to-peer car sharing in Delaware, and it would establish basic consumer protections and regulations for those that participate.

What is Peer to Peer Car Sharing? Is it like Uber? Sort of, but you are the driver in someone else’s car?

Peer-to-peer (P2P) car sharing allows car owners to authorize customers to use their personal vehicle for a set period of time. This practice, and the agreements involved, are facilitated by peer-to-peer car sharing companies, often through mobile apps, like Turo, getaround and Avail. While P2P programs exist in a substantially different market, they are conceptually similar to platforms like AirBNB and VRBO in that they allow owners to create services by leveraging their own assets.

As P2P car sharing has expanded to new markets, states have been moving to set basic consumer protections for customers and car owners alike. Fifteen states currently have P2P car sharing laws on the books, including neighboring Maryland. Senate Bill 168 would regulate this growing industry in three key ways: 

• Establishes new consumer protections for vehicle owners and drivers by setting clear insurance coverage requirements for P2P car sharing, requiring sharing platforms to provide liability insurance for every transaction, and allowing customers to add additional insurance protections via third party insurers.
• Establishes responsibility for car-sharing programs to ensure that no vehicles offered for use are subject to safety recalls that have not been addressed via repairs. 
• Establishes clear statutory definitions of car sharing platforms and activities, requires various disclosures to consumers, and holds P2P companies accountable for record keeping. 

SENATE BILL 168 SPONSORS	YES VOTES	NO VOTES
Lockman	Senate passed 21-0. Brown Ennis Gay Hansen Lockman Mantzavinos Paradee Pinkney Poore S.McBride Sokola Sturgeon Townsend Walsh Bonini Hocker Lawson Lopez Pettyjohn Richardson Wilson
Longhurst
CURRENT STATUS —	House Administration 6/16/21

“Innovation is what drives our state, and it’s on all of us in Dover to make sure we are striking the right balance between cutting-edge technology and reasonable consumer protection,” said Senate Majority Whip Elizabeth “Tizzy” Lockman. “Peer-to-peer car sharing offers an exciting opportunity for car owners to earn a little extra income and for those looking to temporarily borrow a car to do so without breaking the bank. I’m proud to help establish this balance in Delaware and thank my colleagues for their support today.”