MarylandSB 03952026 Regular SessionSenateWALLET

Peer-to-Peer Car Sharing Programs - Insurance and Liability

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 2 costs, 3 mixed.

Program takes on owner liability

Beginning October 1, 2026, the car-sharing program takes on the owner’s liability for injuries, property damage, uninsured/underinsured motorist, and personal injury protection during the sharing period. The amount must be at least the state minimum, and this does not apply if the owner intentionally or fraudulently misled the program (minimums still protect injured people who did not mislead). The program remains liable for harms it causes. The program can also seek money back from an owner or driver for economic losses caused by a breach of the program agreement.

Program insurance pays first when sharing

Beginning October 1, 2026, the car-sharing program’s insurance is primary during each sharing period. A driver’s policy sold under the program is secondary, and the program’s coverage is primary if the driver’s personal insurance has lapsed. The program must ensure at least the state minimum coverage, and if a crash happens in a state with higher minimums, those higher limits apply. Coverage can be provided by the owner, the driver, the program, or a mix, and it must pay first dollar for both the driver and the owner (owner first-dollar can be limited by the program policy’s terms). The program may keep its own policies and has an insurable interest in the vehicle during sharing.

Personal policies can exclude car sharing

Beginning October 1, 2026, personal auto insurers and the state insurer may exclude all coverage, including defense, for losses that happen while a car is shared. These exclusions can apply to liability, uninsured/underinsured motorist, medical payments, PIP, comprehensive, and collision. Maryland’s Automobile Insurance Fund does not have to cover a driver using a shared vehicle that is not a replacement vehicle.

Clear costs, notices, and add-on coverage

Beginning October 1, 2026, program agreements must clearly show any right to seek indemnity from you, state when program insurance applies, and list daily rates, fees, and protection costs. If your car has a lien, the program must warn you that sharing it may break your loan terms. Any optional protection or package the program sells counts as insurance and must follow insurance rules. For replacement vehicles, the agreement must say on its face that your own coverage on the car being repaired is primary and the program’s is secondary. Replacement vehicle coverage can be secondary to other valid coverage.

Stronger claims rules and program duties

Beginning October 1, 2026, if a program fails to give notice, fails to cooperate, prejudices a claim, gives extra applicable coverage, or misses required disclosures, its insurance must pay first for that third-party claim. Programs must share needed information with insurers and involved parties during claim investigations. If an insurer defends an excluded claim, it may seek contribution from the program’s insurer. These rules apply to sharing deals that start in Maryland and to certain third-party claims, not to replacement vehicles.

Not treated as rental company or owner

Beginning October 1, 2026, a car-sharing program or owner is not treated as a rental company just because a vehicle is shared. Programs and owners are not automatically liable just because they own the car, consistent with federal law. A program is also not deemed the owner for certain traffic-signal rules.

Programs may pass through fees and fines

Beginning October 1, 2026, programs may charge drivers separate fees to recover airport or other government charges and must clearly show them in ads. Programs may also bill drivers for tolls, fees, charges, or fines that happen while the driver had the car during the sharing period.

Free Policy Watch

You just read the policy. Now see what it costs you.

Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.

Pick a topic to get started

My Taxes My Health My Budget My Money My Freedom

Or tell us something more specific

Sponsors & Cosponsors

Sponsor

Dawn Gile
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 162 • No: 0

House vote • 4/3/2026

Third Reading Passed

Yes: 120 • No: 0 • Other: 13

Senate vote • 3/5/2026

Third Reading Passed

Yes: 42 • No: 0 • Other: 4

Actions Timeline

Approved by the Governor - Chapter 49
4/14/2026
Returned Passed
4/6/2026Senate
Third Reading Passed (120-0)
4/3/2026House
Favorable Adopted Second Reading Passed
4/2/2026House
Favorable Report by Judiciary
4/2/2026House
Referred Judiciary
3/6/2026House
Third Reading Passed (42-0)
3/5/2026Senate
Second Reading Passed with Amendments
3/3/2026Senate
Favorable with Amendments {263322/1 Adopted
3/3/2026Senate
Favorable with Amendments Report by Finance
3/2/2026Senate
Hearing 2/11 at 2:00 p.m.
1/29/2026Senate
First Reading Finance
1/28/2026Senate

Bill Text

Enacted
4/14/2026
PDF
Third Reading
3/3/2026
PDF
First Reading
1/28/2026
PDF

Related Bills

Back to State Legislation

Take It Personal

Get Your Personalized Policy View

Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.

Already have an account? Sign in