Do Not Underestimate The Potential Risks Of Car Sharing
If you live in in a big city, possessing a car is usually both expensive and a hassle. Getting a parking place might rival locating Osama Bin Laden in its difficulty. Spending money on parking can leave a major hole in your pocket book. Because of the large number of drivers on the highway, car insurance prices are usually higher in big cities. Gas mileage is reduced during city driving because of the relatively slow speeds and regular stops. As a result, many city residents are saying no thanks to car ownership and relying upon other options. Mass transit continues to be an important choice, however a relatively new idea is taking hold in a few U.S. cities: car sharing.
According to CarSharing.net, at the beginning of 2010 there were 27 car sharing programs in the U.S., helping 388,000 members and sharing 7,500 vehicles. They go by names such as Zipcar, Car2go, City CarShare, and Community Car. The programs charge an annual membership fee and may charge an application fee; Zipcar, for example charges a $50 annual fee and a $25 application fee in the Washington, D.C. area. Another fee applies for each usage of an automobile (for example, $30 for a four-hour reservation), which covers gas, insurance, and a specific amount of miles.
The kinds of people most likely to use a car sharing service include:
* Those who usually make use of the bus yet who need their own car on occasion
* People who own one car and from time to time require a second
* Those who own cars but occasionally require a bigger automobile
* People who can’t afford to buy an automobile but could spend the money for membership costs
* Those who wish to avoid the annoying elements of vehicle ownership, such as maintenance, taxes, as well as garaging costs
* Environmentalists concerned about the air pollution that goes along with car ownership
A person utilizing a car sharing service takes risks much like those she would take while renting a car. She may have legal liability for injuring someone or damaging another’s property while using the car. She may suffer injuries in an accident, resulting in healthcare expenses as well as forfeited income. She may damage the vehicle and be accountable for repair costs. The car sharing service offers liability insurance coverage, however the borrower does not have any assurance that the amount of insurance is going to be enough to pay all the damages. Additionally, that insurance may not apply if she allows an unauthorized person to drive, like a “designated driver” after a night around town. If she doesn’t own a vehicle, she might want to obtain a named nonowner car insurance policy, which will cover liability, medical, and uninsured or underinsured motorist losses over and above what the vehicle sharing service’s policy offers. Also, certain umbrella liability policies may cover damage to a borrowed car when the car sharing service’s plan won’t pay. A professional broker can determine insurers that provide these kinds of insurance coverages as well as clarify the disparities in protection and price of the various policies.
For individuals living in areas where it’s accessible, vehicle sharing can be a really reasonable option to owning a vehicle. Like every unique service, it carries certain risks. Nevertheless, by making some basic plans in advance, motorists can take advantage of these types of services and always be assured that they have limited their monetary risks.
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