Do Not Underestimate The Potential Risks Associated With Car Sharing
If you live in an urban area, owning a vehicle can be both costly and a hassle. Finding a parking place might compete with locating Osama Bin Laden in its difficulty. Paying for parking can leave a major hole in your wallet. Due to the sheer quantity of motorists on the road, auto insurance premiums are usually higher in large cities. Gas mileage is reduced during city driving because of the fairly slow rates of speed and regular halts. As a result, a lot of city residents are saying no to vehicle ownership and counting on alternatives. Public transportation remains an important alternative, however a comparatively new concept is taking over in many U.S. cities: vehicle sharing.
As per CarSharing.net, at the beginning of 2010 there were 27 vehicle sharing programs in the U.S., helping 388,000 members and sharing 7,500 automobiles. They go by names like Zipcar, Car2go, and Community Car. The programs impose an annual membership fee and may bill an application fee; Zipcar, for example charges a $50 annual fee and a $25 application fee in the Washington, D.C. area. Another fee is applicable for each use of an automobile (for example, $30 for a four-hour reservation), which includes gasoline, auto insurance coverage, and a specific amount of miles.
The types of people most likely to use a vehicle sharing service include:
* Those who usually use the bus yet who need their own vehicle on occasion
* Those who own one vehicle and occasionally require a second
* Those who own cars but occasionally require a larger automobile
* Those who do not want to purchase an automobile but can afford the membership fees
* Individuals who wish to steer clear of the undesirable parts of vehicle ownership, like upkeep, taxes, and storage costs
* Environmentalists worried about the air pollution which comes with vehicle ownership
A person utilizing a vehicle sharing service takes risks much like those she would take when driving a rental car. She might incur legal liability for injuring someone or harming another’s property when using the car. She may suffer injuries in an accident, resulting in medical expenses and lost income. She may havoc the vehicle and become accountable for repair costs. The car sharing service provides liability insurance coverage, but the borrower has no assurance that the level of insurance coverage is going to be enough to pay all the damages. Also, that insurance coverage might not apply if she allows an unauthorized person to drive, for instance a “designated driver” during a night on the town. If she does not own a car, she should buy a named nonowner auto insurance policy, that’ll include liability, medical, and uninsured or underinsured motorist losses over and above what the vehicle sharing service’s policy offers. Also, some umbrella liability policies might insure damage to a borrowed vehicle when the vehicle sharing service’s policy doesn’t pay. A professional insurance agent could identify insurers that provide these kinds of insurance coverages and clarify the distinctions in coverage and cost of the various policies.
For people living in locations where it is available, vehicle sharing is often a very practical substitute for owning a vehicle. As with any unique service, it bears certain risks. Nonetheless, by making some simple arrangements beforehand, motorists can benefit from these services and be confident that they’ve reduced their financial risks.
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