MarylandHB 11862026 Regular SessionHouseWALLET

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

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 2 costs, 0 mixed.

Less owner and platform liability in sharing

Beginning October 1, 2026, a car‑sharing program is not treated as the vehicle owner for red‑light or traffic camera civil penalties. The program and the car owner are also not liable just because they own the car, consistent with federal and state law. This limits ownership‑only liability in car sharing.

Stronger coverage for car sharing owners and drivers

Beginning October 1, 2026, car‑sharing trips must be insured at least to Maryland’s minimum limits. The program assumes the owner’s liability during the sharing time and pays on a first‑dollar basis for the driver, and usually for the owner. The owner, the driver, the program, or any mix of them can provide the required coverage. Policies used must either recognize peer‑to‑peer use or not exclude drivers using the car through a program. If a crash happens in a state with higher minimums, coverage rises to that state’s minimum.

Stronger crash-claim duties for car-sharing programs

Beginning October 1, 2026, a car‑sharing program must share use and claim info after a crash. If the program fails key duties (like giving notice, cooperating, or required disclosures) or sells extra coverage that applies to the claim, the program’s coverage becomes primary for that third‑party claim. A personal insurer that pays a claim it excluded can seek contribution from the program’s insurer. These rules help speed claims and make sure the right insurer pays first.

Programs can offer their own insurance

Beginning October 1, 2026, a car‑sharing program may be the named insured and sell or bundle coverage for owners, drivers, and vehicle damage. Program policies can use eligible surplus lines insurers that meet Maryland rules and have an A.M. Best rating of A‑ or better. The program must have an insurable interest in the shared car during the sharing period.

Personal auto and MAIF can exclude sharing

Beginning October 1, 2026, personal auto insurers and MAIF may exclude all coverage and the duty to defend for losses during a car‑sharing period. Existing exclusions for renting, sharing, or business use can continue. MAIF does not have to cover a shared‑car driver unless the car is a replacement vehicle. Drivers and owners must rely on program or other coverage during sharing.

Programs can pass through tolls and fees

Beginning October 1, 2026, programs may charge a separate fee to recover government concession fees, like airport charges. Ads for Maryland rates must clearly show these fees. Programs can also charge you for tolls, fees, or fines that occur while you have the car.

Sponsors & Cosponsors

Sponsor

Mike Rogers
Democratic • House

Cosponsors

Gabriel M. Moreno
Democratic • House
N. Scott Phillips
Democratic • House
Nicole A. Williams
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 177 • No: 0

Senate vote • 4/6/2026

Third Reading Passed

Yes: 45 • No: 0 • Other: 1

House vote • 3/18/2026