Trend Alert: Car-Sharing

Imagine your city had a fleet of smart cars, and each vehicle was placed at a different, convenient location across your metropolitan area.

Now imagine you had a key to each and every one of those cars.

That’s the general idea behind car-sharing, and tens of thousands of people are signing up for it in major cities across the U.S.

How it works:

Simply put, car-sharing allows you to ‘borrow’ cars around your city for a low, per-usage fee. Car-sharing companies own and maintain fleets of fuel efficient vehicles and place them in designated parking spots that are convenient for their clientele. Registered users can walk up to any of these cars, type in their information or flash a card, and get access to that car for as long they like, without committing to a specific return time or location.

Done driving for the day? Engage the parking break and log-out. Need a ride? Just find a car at one of several locations across your city.

What does it cost?

Tens of thousands of people across major cities have registered for car sharing services already. That’s because “by-the-minute” rates include costs for fuel, insurance, parking and maintenance. You can have monthly access to transportation to a fraction of the cost of a typical car payment.

What about insurance?

Car sharing programs include roadside assistance and basic insurance coverage with your per-minute usage fee. That typically includes the following:

• Liability insurance coverage for injury and property damage with typical limits of $100,000 per person/$300,000 per accident
• No-fault benefits if your state has a no-fault statute
• Uninsured motorist injury coverage in accordance with the laws of your state

Will it catch on?

Only time will tell if car-sharing services will become the norm. If you’re a car enthusiast it may be difficult to imagine life without a vehicle to call your own. For many people, however, car-sharing just might be the answer they’re looking for to fill their transportation, financial and environmental needs.

Source: AutoInsurance