Oklahoma Bill Creating Framework for Peer-to-Peer Car Sharing Signed by Governor

May 10, 2021

Oklahoma Gov. Kevin Stitt has signed into law a bill that sets up a regulatory framework for peer-to-peer car sharing.

Senate Bill 355, authored by Sen. Paul Rosino R-Oklahoma City, Rep. Lonnie Sims, R-Jenks, and House Majority Floor Leader Jon Echols, R-Oklahoma City, was supported unanimously by both chambers. It will take effect Nov. 1, 2021.

“Peer-to-peer car sharing can be compared to someone renting their home or apartment through Airbnb. Owners list their vehicles on a platform so they can lease them for extra money,” Rosino said in a media release. “SB 355 creates the regulatory framework, addressing important issues like liability, while empowering Oklahomans who want to make extra money by sharing their vehicles.”

SB 355, creating the Peer-to-Peer Car Sharing Program Act, would require all automobiles rented on peer-to-peer platforms to have valid insurance and ensure those vehicles are not subject to outstanding recalls.

According to a legislative summary of the bill: “A peer-to-peer car sharing program is defined as business platform that connects vehicle owners with drivers to enable the sharing of vehicles for financial consideration. The program may not offer renting motor vehicles without a
driver except as provided for in the measure. The program is required to assume liability of a
shared vehicle owner for bodily injury or property damage to third parties or uninsured and
underinsured motorist or personal injury protection losses during the car sharing period. The
program is exempted from assuming liability if the car owner makes an intentional or fraudulent
material representation or omission to the program or acts in concert with a shared vehicle driver
who fails to return the shared vehicle. The measure further requires programs to disclose to
shared vehicle owners or drivers certain facts pertaining to the insured vehicle and liability.”

In addition: “Coverage under an automobile insurance policy maintained by the peer-to-peer car sharing program is not dependent on another automobile insurer first denying a claim.”

The legislation was the result of collaboration from peer-to-peer car sharing marketplaces, like Turo; traditional rental car companies, such as Enterprise Rent-A-Car; insurance industry stakeholders; and technology associations.