New Washington law protects insurance rates for car lenders

Posted & filed under Washington Car Insurance.

A new law in Washington makes it easier for automobile owners to rent or lend their vehicle to car-sharing services. Previously, drivers who allowed their car to be used in car-sharing or car-lending programs were subject to having their car insurance revoked. Under the new law, the car-sharing service must assume insurance liability for the vehicles while they are lent or rented out.

People on both sides of the issue praised the new law. Insurance agents are better protected against unexpected claims resulting from car-sharing services, and vehicle owners no longer have to worry about insurance problems if they participate in a car-renting or sharing program.

In Washington and other states, it’s becoming common for drivers with lower insurance premiums to rent or lend their car to other drivers through car-sharing programs. The drivers who borrow these vehicles may have significant insurance risk. The new law reduces risk for insurance companies, who were previously exposed to the possibility of high-risk drivers causing claims on low-risk policies.