As people are now realizing the benefits of car sharing, this program is becoming widely popular. People from the same locality that has the same destination prefer to share a car, as it will provide them more convenience and profit. Car sharing is very comfortable than traveling on public transport, and it will reduce the additional costs you have to incur when you use your own car. It is also an eco-friendly option, as it can help reduce the number of vehicles on the road, and therefore, road safety will be increased.
Car sharing programs are becoming trending, as there is a wide range of mobile applications and websites that will help you to access vehicles for sharing, even if you don’t know someone personally who offers this facility. These apps and websites will locate a vehicle for you that is going on your exact route, hence, it will be of great help for you to find someone who is willing to share a car with you.
However, if you do not want to give up the comfort of driving your own vehicle, but still want to be a part of car sharing programs, then you can start such a program by yourself. You might be a person who makes daily commute using your own vehicle and want to share it with other people going on the same route, or if you use your car only occasionally and it is resting on your porch most of the time, then this can be a great option for you.
If you want to start a car share program officially, then you will have to go through certain steps. We describe some of the important measures you have to take for starting a car share program on your own.
How to Deal With The Insurance Companies
Typically, insurance companies may decline to cover the damages of your car when a person who is an outsider regularly uses a car. Hence, you might have to face some challenges in getting their approval for sharing your car.
If you use your car only occasionally and one of your neighbors is interested to use it once every week, then you may give it to him/her every week on that particular day. Insurance companies might cover the damages if it involves people who drive your vehicle only occasionally. But they will not provide any coverage if someone else, other than your family members, is driving the vehicle regularly.
Also, if the other driver uses the vehicle only occasionally, but pays you for using it, then the insurance companies will deny coverage. Therefore, you have to keep all these facts in mind when you seek the approval of your insurance company for sharing your car.
Following are some tips for you to get coverage for your vehicle when you share it with other people.
Get the permission of the insurance company: Get the permission of your insurance company in writing. Explain the situation to them like “my neighbor will use my car every Sunday to church”. Even though it might sound regular, an insurance company might approve it under the provision of occasional drivers.
Put the other drivers also on the title: You can put other drivers on the title to the vehicle and make an agreement between them stating that you will take them off the title on a specific date in the future.
Keep it occasional and casual: Only let others borrow your vehicle occasionally. Also, do not form an agreement asking them to pay you money. Keep it casual like asking them to fill your tank when they use it.
Get driver’s insurance for other drivers
Ask other drivers who use your car to take the driver’s insurance. Even though it might not cover the damages to the vehicles in case of an accident, it will provide coverage for stuff like bodily injuries.
Important steps to follow for creating a car share program
If you want to officially start a car sharing program, then you have to follow certain steps for this purpose. These steps are listed below:
Form an entity
You will have to form an entity for managing the operations of your car sharing program. You might have to spend some money for this purpose. However, this is important if you are planning to extend your program in the future and form a company.
Find members who want to share a car and those who are willing to share their own car with others. This will help you to create an initial pool of peoplewho are interested in your program.
The next step is to get the approval of the insurance company. You will have to purchase a package that will fit the needs of your initiative.
Get your systems in place
Create a system for tracking all the activities associated with car sharing including the details of the people who shared the car, the distance traveled, where it was parked, etc. This will help you to maintain a proper system for handling all the procedures associated with car sharing.