Vehicle sharing exclusion in California

Assembly Bill 1871 is a bill which became effective on January, 1, 2011, and allows for vehicle sharing programs in California. An individual can decide to enter into an agreement to allow their personal vehicle to be used for a vehicle sharing program. However, Personal Auto and Umbrella insurers can exclude all coverage while an insured auto is in the program. The vehicle sharing plan is responsible for the operation, maintenance and use of the vehicle during the vehicle’s use under the plan and the plan will need to carry liability coverage. We will not cancel a policy because of participation in a vehicle sharing program.

Our new Umbrella endorsements serve to reinforce the legislation that we will not cover claims that occurred while the vehicle was in the hands of the vehicle sharing program. The new endorsements also align Umbrella with the existing Auto process. We will mail endorsement CA029A and the policy explainer to all policies on renewal. Endorsement CA029 will also be included with new business.