Car2Go is an interesting car sharing service that popped into the central Ohio driving scene in 2013. Now there are over 16,000 members who use the enterprise. Several months into its second year of operation in the Columbus area, people are questioning its insurance liability and other legal ramifications of using the service.
Background
Car2Go is run by Daimler in North America, is currently in 13 U.S. cities, and is a convenient way for a driver to take a one way trip within a certain range. Users are charged a one time fee of $35 dollars before being allowed to access the service. After becoming a member, the user will use a website or an app that will provide instructions for unlocking the vehicle and checking for damages before and after use.
In Columbus, drivers are charged 41 cents per minute to use the cars. One positive benefit is that parking is included and users are able to park the cars almost anywhere. They don’t require reservations, there are no late fees, and users are likely to be within walking distance of a car within the designated area at any given time. The longer someone uses the car, the less he or she has to pay. In our area, people can also use the car program to park throughout Ohio State’s campus and at the airport. The service has been particularly beneficial for many teachers and students who frequently travel and may not have a dedicated car.
Insurance
Many people are still unclear about how insurance will work if they get into a crash with a Car2Go rental. The answer is multifaceted and takes into account what the company covers, what users agree to when they sign up for the service, and individual coverage policies.
According to a Columbus Dispatch report, “Car2Go provides $100,000 in liability coverage and state limits for uninsured or underinsured.” If the crash damage exceeds that amount, however, a driver might be liable for any excess coverage. The $100,000 is per person, and the company has a cap of $300,000 per crash.
To determine if you have additional coverage under an individual policy, look at the terms of your insurance or contact an insurance provider to learn more about your options for obtaining this type of coverage.
Additional Information
The terms of service users of Car2Go agree to also stipulate that certain actions, namely sharing memberships or selling memberships to others, will render Car2Co’s insurance coverage completely void. The user will be held liable for any damage that occurs in unauthorized use.
Other terms include a zero tolerance alcohol policy. Drivers must have a BAC of 0.0%. The driver is responsible for vehicle damage and any traffic citations received. Another interesting provision bars a driver from speaking about liability or fault regarding the accident. Doing any of these things, or others outlined in the agreement, may render insurance coverage by Car2Go void.
If you have specific questions about how Car2Go insurance and terms work, contact our office today.
