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Code of Virginia
Title 46.2. Motor Vehicles
Chapter 14.1. Peer-To-Peer Vehicle Sharing
1/16/2022

Chapter 14.1. Peer-To-Peer Vehicle Sharing.

§ 46.2-1408. Definitions.

As used in this chapter, unless the context requires a different meaning:

"Peer-to-peer vehicle sharing" means the authorized use of a shared vehicle by a shared vehicle driver through a peer-to-peer vehicle sharing platform.

"Peer-to-peer vehicle sharing platform" means an online-enabled application, website, or system that connects vehicle owners with drivers to enable the sharing of peer-to-peer shared vehicles for financial consideration.

"Shared vehicle" means a motor vehicle that has been made available for sharing through a peer-to-peer vehicle sharing platform. "Shared vehicle" does not include a daily rental vehicle as defined in § 58.1-1735.

"Shared vehicle driver" means an individual who has been authorized to operate a shared vehicle by the shared vehicle owner under a vehicle sharing platform agreement.

"Shared vehicle owner" means the registered owner, or a person or entity designated by the registered owner, of a vehicle made available for sharing to shared vehicle drivers through a peer-to-peer vehicle sharing platform.

"Vehicle sharing delivery period" means the period of time beginning when the agent of a peer-to-peer vehicle sharing platform takes custody of the shared vehicle and ending when the shared vehicle arrives at the location agreed upon in the governing vehicle sharing platform agreement.

"Vehicle sharing period" means the period of time that commences with the vehicle sharing delivery period or, if there is no vehicle sharing delivery period, that commences when the vehicle sharing start time occurs and ends at the vehicle sharing termination time.

"Vehicle sharing platform agreement" means the terms and conditions applicable to a shared vehicle owner and a shared vehicle driver that govern the use of a shared vehicle through a peer-to-peer vehicle sharing platform.

"Vehicle sharing start time" means the time when the shared vehicle becomes subject to the control of the shared vehicle driver at or after the sharing of a shared vehicle is scheduled to begin as documented in the records of a peer-to-peer vehicle sharing platform.

"Vehicle sharing termination time" means the earliest of the following events:

1. When the shared vehicle is delivered to the location agreed upon in the vehicle sharing platform agreement on or after the expiration of the agreed-upon period of time established for the use of a shared vehicle according to the terms of the vehicle sharing platform agreement;

2. When the shared vehicle is returned to a location as alternatively agreed upon by the shared vehicle owner and shared vehicle driver within the agreed-upon period of time as communicated through a peer-to-peer vehicle sharing platform; or

3. When the shared vehicle owner, or the shared vehicle owner's authorized designee, takes possession and control of the shared vehicle.

2020, c. 1266.

§ 46.2-1409. Peer-to-peer insurance coverage.

A. A peer-to-peer vehicle sharing platform shall ensure that at all times during each vehicle sharing period the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy that provides uninsured motorist coverage and bodily injury and property damage liability coverage and that provides primary insurance coverage in an amount not less than the applicable financial responsibility limits set forth in this title and in § 38.2-2206 and:

1. Contains written recognition that the shared vehicle insured under the policy is made available and used through a peer-to-peer vehicle sharing platform; or

2. Does not exclude use of a shared vehicle by a shared vehicle driver.

B. A peer-to-peer vehicle sharing platform shall assume primary liability, except as provided in subsection C, of a shared vehicle owner for bodily injury and property damage to third parties and uninsured motorist losses during the vehicle sharing period in an amount stated in the vehicle sharing platform agreement, which amount shall not be less than the applicable financial responsibility limits set forth in this title and in § 38.2-2206.

C. Notwithstanding the definition of vehicle sharing termination time in § 46.2-1408, the assumption of liability under subsection B does not apply to any shared vehicle owner when such shared vehicle owner:

1. Performs an act, practice, or omission that constitutes fraud or makes an intentional misrepresentation of material fact to the peer-to-peer vehicle sharing platform before the vehicle sharing period in which the loss occurred; or

2. Acts in concert with a shared vehicle driver who fails to return the shared vehicle pursuant to the terms of the vehicle sharing platform agreement.

D. The insurance described under subsection A may be satisfied by motor vehicle liability insurance maintained by:

1. A shared vehicle owner;

2. A shared vehicle driver;

3. A peer-to-peer vehicle sharing platform; or

4. Any combination of a shared vehicle owner, a shared vehicle driver, and a peer-to-peer vehicle sharing platform.

E. The peer-to-peer vehicle sharing platform shall assume primary liability for a claim when it is in whole or in part providing the insurance required pursuant to subsections A and D and:

1. A dispute exists as to who was in control of the shared vehicle at the time of the loss; and

2. The peer-to-peer vehicle sharing platform does not have available, did not retain, or fails to provide the information required by § 46.2-1413.

F. The vehicle owner's insurer shall indemnify the peer-to-peer vehicle sharing platform to the extent of its obligation under the applicable insurance policy, if it is determined that the shared vehicle's owner or his designee was in control of the shared vehicle at the time of the loss.

If any insurer providing insurance coverage under subsection D pays a claim that it was not obligated to pay, such insurer shall be entitled to indemnification from the insurer of the party that had the obligation to pay the claim.

G. If insurance maintained by a shared vehicle owner or shared vehicle driver in accordance with subsection D has lapsed, has been canceled, or does not provide the required coverage, the insurer providing the insurance maintained by a peer-to-peer vehicle sharing platform shall provide coverage pursuant to subsection A beginning with the first dollar of a claim and shall have the duty to defend such claim except under circumstances set forth in subsection C.

H. Coverage under a motor vehicle liability insurance policy maintained by the peer-to-peer vehicle sharing platform shall not be dependent on another automobile insurer's first denying a claim, nor shall another motor vehicle insurance policy be required to first deny a claim.

I. Nothing in this chapter:

1. Limits the liability of the peer-to-peer vehicle sharing platform for any act or omission of the peer-to-peer vehicle sharing platform itself that results in injury to any person as a result of the use of a shared vehicle through a peer-to-peer vehicle sharing platform; or

2. Limits the ability of the peer-to-peer vehicle sharing platform to, by contract, seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer vehicle sharing platform resulting from a breach of the terms and conditions of the vehicle sharing platform agreement.

J. A peer-to-peer vehicle sharing platform shall either provide or offer for sale to the shared vehicle owner or shared vehicle driver collision and other than collision coverage for physical loss to the shared vehicle during the vehicle sharing period. Such coverage shall be in an amount not less than the actual cash value of the shared vehicle.

K. Any insurer providing coverage under subsection D, or an individual who suffers a loss arising from the use of a shared vehicle or the attorney for such insurer or individual, or a personal representative of the estate of a decedent who died as a result of a motor vehicle accident involving a shared vehicle if not represented by counsel, and who provides the peer-to-peer vehicle sharing platform with the date, approximate time, and location of the accident and, if available, the name of the shared vehicle owner and, if available, the accident report, may request in writing from the peer-to-peer vehicle sharing platform the identity of any insurer that may have provided coverage and the limits of liability, regardless of whether the insurer contests the applicability of the policy to the claim, and whether, at the approximate time of the accident, the shared vehicle was in a vehicle sharing period. The peer-to-peer vehicle sharing platform shall respond within 30 days with the requested information if such information is in the peer-to-peer vehicle sharing platform's possession. Any further exchange of information shall be covered pursuant to § 8.01-417.

2020, c. 1266.

§ 46.2-1410. Exemption: vicarious liability.

A peer-to-peer vehicle sharing platform and a shared vehicle owner shall be exempt from vicarious liability under any law that imposes liability solely based on vehicle ownership for any offense that occurs during a vehicle sharing period.

2020, c. 1266.

§ 46.2-1411. Notification of implications of lien.

At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer vehicle sharing platform and prior to when the shared vehicle owner makes a shared vehicle available for vehicle sharing on the peer-to-peer vehicle sharing platform, the peer-to-peer vehicle sharing platform shall notify the shared vehicle owner that, if the shared vehicle has a lien against it, the use of the shared vehicle through a peer-to-peer vehicle sharing platform, including use without physical damage coverage, may violate the terms of the contract with the lienholder.

2020, c. 1266.

§ 46.2-1412. Insurable interest.

A. Notwithstanding any provision of law to the contrary, a peer-to-peer vehicle sharing platform shall have an insurable interest in a shared vehicle during the vehicle sharing period.

B. A peer-to-peer vehicle sharing platform may own and maintain as the named insured one or more policies of motor vehicle liability insurance that provides coverage for:

1. Liabilities assumed by the peer-to-peer vehicle sharing platform under a vehicle sharing platform agreement;

2. Any liability of the shared vehicle owner;

3. Damage or loss to the shared vehicle; or

4. Any liability of the shared vehicle driver.

2020, c. 1266.

§ 46.2-1413. Recordkeeping: use of vehicle in vehicle sharing.

A peer-to-peer vehicle sharing platform shall collect and verify records pertaining to the use of a shared vehicle, including a record of the identity of the shared vehicle driver, times used, locations established pursuant to the vehicle sharing platform agreement, fees paid by the shared vehicle driver, and revenues received by the shared vehicle owner, and provide such records upon request to the shared vehicle owner, the shared vehicle owner's insurer, or the shared vehicle driver's insurer to facilitate a claim coverage investigation, settlement, negotiation, or litigation. The peer-to-peer vehicle sharing platform shall retain the records for at least five years.

2020, c. 1266.

§ 46.2-1414. Consumer protections; disclosures.

Each vehicle sharing platform agreement shall disclose to the shared vehicle owner and the shared vehicle driver:

1. Any right of the peer-to-peer vehicle sharing platform to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer vehicle sharing platform resulting from a breach of terms and conditions of the vehicle sharing platform agreement;

2. That a motor vehicle liability insurance policy provided by the peer-to-peer vehicle sharing platform to the shared vehicle owner for the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification for any claim asserted by the peer-to-peer vehicle sharing platform;

3. That the peer-to-peer vehicle sharing platform's insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during each vehicle sharing period and that for any use of the shared vehicle by the shared vehicle driver after the vehicle sharing termination time, the shared vehicle driver and the shared vehicle owner may not have insurance coverage;

4. The daily rate, fees, taxes, and, if applicable, any insurance or protection package costs that are charged to the shared vehicle owner or the shared vehicle driver;

5. That the shared vehicle owner's motor vehicle liability insurance may not provide coverage for a shared vehicle;

6. An emergency telephone number to personnel capable of fielding roadside assistance and other customer service inquiries;

7. That any financial responsibility requirements imposed on the shared vehicle driver as a condition of maintaining a driver's license remain in effect during the use of a shared vehicle;

8. That the use of the shared vehicle through a peer-to-peer vehicle sharing platform without physical damage coverage may violate the terms of the contract with the lienholder; and

9. That there may not be physical damage coverage under the shared vehicle owner's policy. However, if the physical damage coverage is purchased from or provided by the peer-to-peer vehicle sharing platform, no such disclosure is required.

2020, c. 1266.

§ 46.2-1415. Automobile safety recalls.

A. When a vehicle owner registers as a shared vehicle owner on a peer-to-peer vehicle sharing platform and prior to when the shared vehicle owner makes a shared vehicle available for vehicle sharing on the peer-to-peer vehicle sharing platform, the peer-to-peer vehicle sharing platform shall:

1. Verify that the shared vehicle does not have any safety recalls on the vehicle for which the repairs have not been made; and

2. Notify the shared vehicle owner of the requirements under subsection B.

B. 1. If the shared vehicle owner has received an actual notice of a safety recall on the vehicle, a shared vehicle owner may not make a vehicle available as a shared vehicle on a peer-to-peer vehicle sharing platform until the safety recall repair has been made.

2. If a shared vehicle owner receives an actual notice of a safety recall on a shared vehicle while the shared vehicle is available on the peer-to-peer vehicle sharing platform, the shared vehicle owner shall remove the shared vehicle from the peer-to-peer vehicle sharing platform as soon as practicably possible after receiving the notice of the safety recall, and such vehicle shall remain off of the peer-to-peer vehicle sharing platform until the safety recall repair has been made.

3. If a shared vehicle owner receives an actual notice of a safety recall during a vehicle sharing period, such owner shall, as soon as practicably possible after receiving the notice of the safety recall, notify the peer-to-peer vehicle sharing platform about the safety recall so that the shared vehicle owner may address the safety recall repair.

2020, c. 1266.

§ 46.2-1416. Operation at airports.

No peer-to-peer vehicle sharing platform or shared vehicle owner shall conduct any peer-to-peer vehicle sharing on the property of any airport, unless such operation is authorized by the airport owner or operator and is in compliance with the rules and regulations of that airport. An airport may take action against a peer-to-peer vehicle sharing platform or shared vehicle owner that violates any regulation of an airport owner or operator, including suspension or revocation of the peer-to-peer vehicle sharing platform's authority to operate.

2020, c. 1266.

§ 46.2-1417. Responsibility for equipment.

The peer-to-peer vehicle sharing platform shall have sole responsibility for any equipment, such as a global positioning system (GPS), that is installed or placed in or on a shared vehicle to monitor or facilitate peer-to-peer vehicle sharing and shall agree to indemnify and hold harmless the shared vehicle owner for any damage to or theft of such system or equipment during a vehicle sharing period not caused by the shared vehicle owner. The peer-to-peer vehicle sharing platform has the right to seek indemnity from the shared vehicle driver for any loss or damage to such system or equipment that occurs during the vehicle sharing period.

2020, c. 1266.

§ 46.2-1418. No limitation on other authority.

The requirements imposed on shared vehicle owners and peer-to-peer vehicle sharing platforms shall not limit any other state or local taxing, zoning, or other regulatory authority from applying any measure applicable to any other business on a shared vehicle owner or peer-to-peer vehicle sharing platform.

2020, c. 1266.