AN ACT RELATING TO INSURANCE -- PEER-TO-PEER CAR SHARING PROGRAM ACT (Created a peer-to-peer car sharing program, which will prescribe insurance coverage and other related details while using a car sharing application.)

S2146

2026 -- S 2146
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LC003984
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO INSURANCE -- PEER-TO-PEER CAR SHARING PROGRAM ACT

Introduced By:
Senators Gallo, Tikoian, Ciccone, Gu, DiPalma, Burke, LaMountain, and
Murray

Date Introduced:
January 16, 2026

Referred To:
Senate Judiciary
It is enacted by the General Assembly as follows:
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SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended by
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adding thereto the following chapter:
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CHAPTER 8.4
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PEER-TO-PEER- CAR SHARING PROGRAM ACT
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27-8.4-1. Short title.

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This act shall be known and may be cited as the "Peer-to-Peer Car Sharing Program Act".
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27-8.4-2. Applicability.

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The provisions of this chapter apply notwithstanding any law, rule, or regulation to the
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contrary. Where any provision of this chapter conflicts with any other provision of law, the
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provisions of this chapter shall supersede any such conflicting or contradictory provision.
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27-8.4-3. Definitions.

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Except as otherwise provided, the following definitions apply throughout this chapter:
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(1) "Car sharing delivery period" means the period of time during which a shared vehicle
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is being delivered to the location of the car sharing start time, if applicable, as documented by the
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governing car sharing program agreement.
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(2) "Car sharing period" means the period of time that commences with the car sharing
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delivery period or, if there is no car sharing delivery period, that commences with the car sharing
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start time and in either case ends at the car sharing termination time.
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(3) "Car sharing program agreement" means the terms and conditions applicable to a shared

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vehicle owner and a shared vehicle driver that govern the use of a shared vehicle through a peer-
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to-peer car sharing program. "Car sharing program agreement" does not mean a rental agreement
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or rental contract, issued by a rental company as defined in § 31-34.1-1.
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(4) "Car sharing start time" means the time when the shared vehicle becomes subject to the
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control of the shared vehicle driver at or after the time the reservation of a shared vehicle is
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scheduled to begin as documented in the records of a peer-to-peer car sharing program.
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(5) "Car sharing termination time" means the earliest of the following events:
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(i) The expiration of the agreed upon period of time established for the use of a shared
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vehicle according to the terms of the car sharing program agreement if the shared vehicle is
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delivered to the location agreed upon in the car sharing program agreement;
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(ii) When the shared vehicle is returned to a location as alternatively agreed upon by the
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shared vehicle owner and shared vehicle driver as communicated through a peer-to-peer car sharing
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program, which alternatively agreed upon location shall be incorporated into the car sharing
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program agreement; or
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(iii) When the shared vehicle owner or the shared vehicle owner's authorized designee,
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takes possession and control of the shared vehicle.
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(6) "Peer-to-peer car sharing" means the authorized use of a vehicle by an individual other
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than the vehicle's owner through a peer-to-peer car sharing program. "Peer-to-peer car sharing"
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does not mean rental activity or renting motor vehicles as described in chapter 34.1 of title 31.
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(7) "Peer-to-peer car sharing program" means a business platform that connects vehicle
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owners with drivers to enable the sharing of vehicles for financial consideration. "Peer-to-peer car
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sharing program" does not mean a rental company as defined in § 31-34.1-1.
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(8) "Shared vehicle" means a vehicle that is available for sharing through a peer-to-peer
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car sharing program. "Shared vehicle" does not mean a rental motor vehicle as described in § 31-
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34.1-1.
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(9) "Shared vehicle driver" means an individual who has been authorized to drive the
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shared vehicle by the shared vehicle owner under a car sharing program agreement.
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(10) "Shared vehicle owner" means the registered owner, or a person or entity designated
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by the registered owner, of a vehicle made available for sharing to shared vehicle drivers through
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a peer-to-peer car sharing program. "Shared vehicle owner" does not mean a rental company as
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defined in § 31-34.1-1.
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27-8.4-4. Insurance coverage during car sharing period.

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(a) A peer-to-peer car sharing program shall assume liability, except as provided in
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subsection (b) of this section, of a shared vehicle owner for bodily injury or property damage to

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third parties or uninsured and underinsured motorist or personal injury protection losses during the
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car sharing period in an amount stated in the car sharing program agreement which amount may
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not be less than those set forth in § 31-32-2.
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(b) Notwithstanding the definition of "car sharing termination time" as set forth in § 27-
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8.4-3, the assumption of liability under subsection (a) of this section does not apply to any shared
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vehicle owner when:
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(1) A shared vehicle owner makes an intentional or fraudulent material misrepresentation
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or omission to the peer-to-peer car sharing program before the car sharing period in which the loss
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occurred; or
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(2) Acting in concert with a shared vehicle driver who fails to return the shared vehicle
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pursuant to the terms of a car sharing program agreement.
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(c) Notwithstanding the definition of "car sharing termination time" as set forth in § 27-
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8.4-3, the assumption of liability under subsection (a) of this section would apply to bodily injury,
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property damage, uninsured and underinsured motorist or personal injury protection losses by
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damaged third parties required by § 31-32-2.
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(d) A peer-to-peer car sharing program shall ensure that, during each car sharing period,
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the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability
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insurance policy that provides insurance coverage in amounts no less than the minimum amounts
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set forth in § 31-32-2, and:
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(1) Recognizes that the shared vehicle insured under the policy is made available and used
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through a peer-to-peer car sharing program; or
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(2) Does not exclude use of a shared vehicle by a shared vehicle driver.
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(e) The insurance described under subsection (d) of this section may be satisfied by motor
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vehicle liability insurance maintained by:
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(1) A shared vehicle owner;
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(2) A shared vehicle driver;
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(3) A peer-to-peer car sharing program; or
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(4) Some combination of a shared vehicle owner, a shared vehicle driver, and a peer-to-
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peer car sharing program.
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(f) The insurance described in subsection (e) of this section that is satisfying the insurance
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requirement of subsection (d) of this section shall be primary during each car sharing period and in
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the event that a claim occurs in another state with minimum financial responsibility limits higher
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than the limits contained in § 31-32-2, during the car sharing period, the coverage maintained under
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subsection (e) of this section shall satisfy the difference in minimum coverage amounts, up to the

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applicable policy limits.
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(g) The insurer, insurers, or peer-to-peer car sharing program providing coverage under
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subsection (d) or (e) of this section shall assume primary liability for a claim when:
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(1) A dispute exists as to who was in control of the shared motor vehicle at the time of the
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loss and the peer-to-peer car sharing program does not have available, did not retain, or fails to
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provide the information required by § 27-8.4-7; or
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(2) A dispute exists as to whether the shared vehicle was returned to the alternatively agreed
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upon location as required under § 27-8.4-3(5).
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(h) If insurance maintained by a shared vehicle owner or shared vehicle driver in
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accordance with subsection (e) of this section has lapsed or does not provide the required coverage,
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insurance maintained by a peer-to-peer car sharing program shall provide the coverage required by
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subsection (d) of this section beginning with the first dollar of a claim and have the duty to defend
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such claim except under circumstances as set forth in subsection (b) of this section.
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(i) Coverage under an automobile insurance policy maintained by the peer-to-peer car
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sharing program shall not be dependent on another automobile insurer first denying a claim nor
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shall another automobile insurance policy be required to first deny a claim.
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(j) Nothing in this chapter:
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(1) Limits the liability of the peer-to-peer car sharing program for any act or omission of
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the peer-to-peer car sharing program itself that results in injury to any person as a result of the use
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of a shared vehicle through a peer-to-peer car sharing program; or
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(2) Limits the ability of the peer-to-peer car sharing program to, by contract, seek
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indemnification from the shared vehicle owner or the shared vehicle driver for economic loss
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sustained by the peer-to-peer car sharing program resulting from a breach of the terms and
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conditions of the car sharing program agreement.
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27-8.4-5. Notification of implications of lien.

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At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer car
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sharing program and prior to the time when the shared vehicle owner makes a shared vehicle
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available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing
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program shall notify the shared vehicle owner that, if the shared vehicle has a lien against it, the
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use of the shared vehicle through a peer-to-peer car sharing program, including use without physical
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damage coverage, may violate the terms of the contract with the lienholder.
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27-8.4-6. Exclusions in motor vehicle liability insurance policies.

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(a) An authorized insurer that writes motor vehicle liability insurance in this state may
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exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a

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shared vehicle owner's motor vehicle liability insurance policy, including, but not limited to:
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(1) Liability coverage for bodily injury and property damage;
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(2) Uninsured and underinsured motorist coverage;
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(3) Medical payments coverage;
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(4) Comprehensive physical damage coverage; and
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(5) Collision physical damage coverage.
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(b) Nothing in this chapter invalidates or limits an exclusion contained in a motor vehicle
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liability insurance policy, including any insurance policy in use or approved for use that excludes
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coverage for motor vehicles made available for rent, sharing, or hire or for any business use.
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(c) Nothing in this chapter invalidates, limits, or restricts an insurer's ability under existing
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law to underwrite any insurance policy. Nothing in this chapter invalidates, limits, or restricts an
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insurer's ability under existing law to cancel and non-renew policies.
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27-8.4-7. Recordkeeping -- Use of vehicle in car sharing.

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A peer-to-peer car sharing program shall collect and verify records pertaining to the use of
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a vehicle, including, but not limited to, times used, car sharing period pick up and drop off locations,
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fees paid by the shared vehicle driver, and revenues received by the shared vehicle owner and
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provide that information upon request to the shared vehicle owner, the shared vehicle owner's
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insurer, or the shared vehicle driver's insurer to facilitate a claim coverage investigation, settlement,
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negotiation, or litigation. The peer-to-peer car sharing program shall retain the records for a time
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period not less than four (4) years.
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27-8.4-8. Exemptions.

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(a) Vicarious liability. A peer-to-peer car sharing program and a shared vehicle owner shall
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be exempt from vicarious liability consistent with 49 U.S.C. § 30106 and under any state or local
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law that imposes liability solely based on vehicle ownership.
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(b) Rental vehicle surcharge. The receipts of the peer-to-peer car sharing program and the
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receipts of the shared vehicle owner from peer-to-peer car sharing shall be exempt from the eight
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percent (8%) rental vehicle surcharge as set forth in § 31-34.1-2.
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27-8.4-9. Contribution against indemnification.

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A motor vehicle insurer that defends or indemnifies a claim against a shared vehicle that is
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excluded under the terms of its policy shall have the right to seek recovery against the motor vehicle
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insurer of the peer-to-peer car sharing program if the claim is:
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(1) Made against the shared vehicle owner or the shared vehicle driver for loss or injury
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that occurs during the car sharing period; and
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(2) Excluded under the terms of its policy.

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27-8.4-10. Insurable interest.

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(a) Notwithstanding any other law, statute, rule, or regulation to the contrary, a peer-to-
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peer car sharing program shall have an insurable interest in a shared vehicle during the car sharing
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period.
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(b) Nothing in this section creates liability on a peer-to-peer car sharing program to
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maintain the coverage mandated by § 27-8.4-4.
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(c) A peer-to-peer car sharing program may own and maintain as the named insured one or
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more policies of motor vehicle liability insurance that provides coverage for:
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(1) Liabilities assumed by the peer-to-peer car sharing program under a car sharing
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program agreement;
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(2) Any liability of the shared vehicle owner; or
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(3) Damage or loss to the shared motor vehicle; or any liability of the shared vehicle driver.
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27-8.4-11. Consumer protections disclosures.

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Each car sharing program agreement made in this state shall disclose to the shared vehicle
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owner and the shared vehicle driver:
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(1) Any right of the peer-to-peer car sharing program to seek indemnification from the
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shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer
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car sharing program resulting from a breach of the terms and conditions of the car sharing program
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agreement;
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(2) That a motor vehicle liability insurance policy issued to the shared vehicle owner for
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the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification for
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any claim asserted by the peer-to-peer car sharing program;
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(3) That the peer-to-peer car sharing program's insurance coverage on the shared vehicle
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owner and the shared vehicle driver is in effect only during each car sharing period and that, for
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any use of the shared vehicle by the shared vehicle driver after the car sharing termination time, the
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shared vehicle driver and the shared vehicle owner may not have insurance coverage;
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(4) The daily rate, fees, and if applicable, any insurance or protection package costs that
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are charged to the shared vehicle owner or the shared vehicle driver;
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(5) That the shared vehicle owner's motor vehicle liability insurance may not provide
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coverage for a shared vehicle;
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(6) An emergency telephone number to personnel capable of fielding roadside assistance
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and other customer service inquiries; and
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(7) If there are conditions under which a shared vehicle driver must maintain a personal
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automobile insurance policy with certain applicable coverage limits on a primary basis in order to

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book a shared motor vehicle.
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27-8.4-12. Driver's license verification and data retention.

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(a) A peer-to-peer car sharing program may not enter into a car sharing program agreement
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with a driver unless the driver who will operate the shared vehicle:
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(1) Holds a driver's license issued under chapter 10 of title 31 that authorizes the driver to
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operate vehicles of the class of the shared vehicle; or
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(2) Is a nonresident who:
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(i) Has a driver's license issued by the state or country of the driver's residence that
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authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle; and
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(ii) Is at least the same age as that required of a resident to drive; or
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(3) Otherwise is specifically authorized by § 31-10-2 to drive vehicles of the class of the
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shared vehicle.
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(b) A peer-to-peer car sharing program shall keep a record of:
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(1) The name and address of the shared vehicle driver;
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(2) The number of the driver's license of the shared vehicle driver and each other person,
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if any, who will operate the shared vehicle; and
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(3) The place of issuance of the driver's license.
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27-8.4-13. Responsibility for equipment.

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A peer-to-peer car sharing program shall have sole responsibility for any equipment, such
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as a GPS system or other special equipment that is put in or on the vehicle to monitor or facilitate
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the car sharing transaction, and shall agree to indemnify and hold harmless the vehicle owner for
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any damage to or theft of such equipment during the car sharing period not caused by the vehicle
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owner. The peer-to-peer car sharing program has the right to seek indemnity from the shared vehicle
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driver for any loss or damage to such equipment that occurs during the car sharing period.
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27-8.4-14. Automobile safety recalls.

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(a) At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer
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car sharing program and prior to the time when the shared vehicle owner makes a shared vehicle
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available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing
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program shall:
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(1) Verify that the shared vehicle does not have any safety recalls on the vehicle for which
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the repairs have not been made; and
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(2) Notify the shared vehicle owner of the requirements under subsection (b) of this section.
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(b)(1) If the shared vehicle owner has received an actual notice of a safety recall on the
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vehicle, a shared vehicle owner may not make a vehicle available as a shared vehicle on a peer-to-

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peer car sharing program until the safety recall repair has been made.
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(2) If a shared vehicle owner receives an actual notice of a safety recall on a shared vehicle
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while the shared vehicle is made available on the peer-to-peer car sharing program, the shared
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vehicle owner shall remove the shared vehicle as available on the peer-to-peer car sharing program,
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as soon as practicably possible after receiving the notice of the safety recall and until the safety
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recall repair has been made.
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(3) If a shared vehicle owner receives an actual notice of a safety recall while the shared
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vehicle is being used in the possession of a shared vehicle driver, as soon as practicably possible
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after receiving the notice of the safety recall, the shared vehicle owner shall notify the peer-to-peer
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car sharing program about the safety recall in order that the shared vehicle owner may address the
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safety recall repair.
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SECTION 2. This act shall take effect on January 1, 2027.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- PEER-TO-PEER CAR SHARING PROGRAM ACT
***
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This act would create a peer-to-peer car sharing program, which will prescribe insurance
2
coverage and other related details while using a car sharing application.
3
This act would take effect on January 1, 2027.
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