While it’s still much more common to just go to a car hire firm in the UK when it comes time to gain access to a vehicle for a temporary period of time, one US state has paved the way for those willing to hire cars directly from individuals looking to decrease the costs of motoring such as high petrol prices and rising car insurance rates.
Christie Gregoire, the governor of the state of Washington, has recently made it easier for individuals to compete against car hire firms by allowing liability to transfer between car insurance companies. Individuals who offer their vehicles for use through a car sharing service are no longer liable for insurance, as the burden now resides upon the service operator to have a valid policy in place for when the vehicle is used by someone hiring the car.
Before the new law, drivers in Washington could face invalidation of their motor car insurance cover for hiring out their vehicles, as it was considered to be a commercial activity. However, now residents of the state can simply secure discount car insurance for their car’s personal use while relying upon the car sharing service to handle the details of insuring their vehicle for use by others, as the sharing firm now has responsibility whenever they hire out the car to another individual.
There are some industry experts who say that if this scheme would make its way across the pond to the UK, it could lead to lessened costs for keeping a car in the current economic environment.