HB450 Alabama 2021 Session

Summary

Primary Sponsor

Neil RaffertyRepresentative

Democrat

Session

Regular Session 2021

Title

Motor vehicles, Peer-to-Peer Car Sharing Program Act, operation of programs provided for

Summary

HB450 would set rules for operating peer-to-peer car sharing in Alabama, including insurance, recalls, disclosures, and recordkeeping.

What This Bill Does

It defines key terms and outlines how peer-to-peer car sharing programs operate in the state. It requires primary motor vehicle liability insurance during each car sharing period, with minimum limits, and allows coverage to come from the owner, driver, or the program. It states that the program and the shared vehicle owner are generally not liable for harm during the car sharing period, but lists exceptions and how coverage applies. It also requires safety recall checks before listing a vehicle, lien notices to owners, and collection and retention of records to support claims and investigations.

Who It Affects

• Shared vehicle owners and their vehicles: must ensure appropriate insurance coverage for car sharing, comply with recall and lien notification requirements, and may face indemnification and disclosure responsibilities under the program.
• Shared vehicle drivers and the peer-to-peer car sharing programs (and their insurers): must meet licensing and eligibility requirements, rely on primary insurance during car sharing, maintain records, provide disclosures to participants, and navigate indemnification and coverage provisions.

Key Provisions

• Defines terms such as car sharing period, car sharing program, shared vehicle, owner, and driver to create a common framework.
• Requires primary motor vehicle liability insurance during each car sharing period with minimum limits, recognizable program use, and the option for coverage to be provided by the owner, driver, or program.
• The program may assume liability for third-party bodily injury or property damage during the car sharing period, with exceptions for owner misrepresentation or driver not returning the vehicle.
• Enforces safety recall checks before listing a vehicle and prohibits listing until recalls are repaired; requires notice and status changes if recalls occur during sharing.
• Mandates recordkeeping of vehicle usage, fees, revenues, and pickup/drop-off locations; allows records to be shared with owners or insurers and retained for the relevant statute of limitations.
• Requires driver licensing verification and maintains records of operator information; imposes disclosures in the car sharing program agreement about indemnification, coverage limits, and insurance gaps.
• Allows insurers or programs to exclude certain coverages under existing policies and preserves rights to seek indemnification for economic losses due to breach of terms.
• Effective date: January 1, 2022.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles