AlabamaSB1092026 Regular SessionSenateWALLET

Peer-to-Peer Car Sharing Program act; requirements for the operation of peer-to-peer car sharing programs, provided

Sponsored By: Chris Elliott (Republican)

Enacted

Motor Vehicles & Traffic

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 1 costs, 0 mixed.

Car owners gain ownership-based liability protection

Beginning October 1, 2026, shared-vehicle owners and car-sharing programs receive protection from liability based solely on vehicle ownership. The exemption follows federal law and applies to state or local ownership-based claims. It does not shield owners or programs from liability based on other grounds, including the program's own actions.

Insurance protection for car-sharing owners and drivers

Beginning October 1, 2026, programs must assume owners' liability for injuries or property damage to others during car sharing. Agreements must state coverage of at least Alabama's required minimum, and owners and drivers must have insurance that covers sharing. Coverage is primary; program insurance must cover claims from the first dollar and provide a defense when other coverage lapses or falls short. Programs cannot require another insurer to deny a claim first. Exceptions apply when owners intentionally or fraudulently misrepresent or omit key facts beforehand, or help drivers fail to return vehicles. Claims arising in states with higher minimums require coverage of the difference, up to policy limits.

Personal insurance can exclude car-sharing claims

Beginning October 1, 2026, authorized auto insurers may exclude car-sharing claims from an owner's personal policy. Exclusions can cover injury, property damage, medical payments, uninsured or underinsured drivers, comprehensive coverage, and collision coverage. Insurers may also exclude the duty to defend or pay these claims. Separate insurance requirements still apply during car-sharing periods.

Clearer terms and records for car-sharing users

Beginning October 1, 2026, Alabama car-sharing agreements must explain daily rates, fees, insurance costs, and when program coverage applies. They must explain repayment rights for agreement breaches, personal-policy limits, required personal insurance, emergency contacts, and tire rules. Before listing a vehicle with a lien, programs must warn that sharing—including without vehicle-damage coverage—may violate the loan agreement. Programs must collect and verify records of vehicle use, pickup and drop-off locations, driver fees, and owner earnings. Owners and their or drivers' insurers can request relevant records for claims or lawsuits. Programs must keep these records at least through the applicable deadline for filing a personal injury claim.

Car-sharing programs can insure shared vehicles

Beginning October 1, 2026, car-sharing programs have an insurable interest in vehicles during sharing periods. They may hold policies covering their assumed liability, owner or driver liability, and vehicle damage or loss. An insurer that defends or pays an excluded sharing-period claim may seek a share of the cost from the program's insurer. These rules authorize insurance arrangements and divide claim costs; they do not set household premiums or payments.

Sponsors & Cosponsors

Sponsor

Chris Elliott
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 254 • No: 12

House vote • 2/12/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 415

Yes: 89 • No: 7 • Other: 8

House vote • 2/12/2026

Third Reading in Second House

Yes: 97 • No: 5 • Other: 2

Senate vote • 1/27/2026

Third Reading in House of Origin

Yes: 34 • No: 0