Senate Bill 771, introduced in the Maryland Legislature on March 12, 2025, aims to clarify insurance coverage for peer-to-peer car sharing programs. The bill addresses the complexities surrounding liability and insurance claims that arise during the use of shared vehicles, a growing trend in the transportation sector.

The primary purpose of Senate Bill 771 is to establish clear guidelines regarding the insurance responsibilities of both shared vehicle owners and drivers. Key provisions include stipulations that consumer complaints related to surplus lines policies in peer-to-peer car sharing are subject to oversight by the Maryland Insurance Commissioner. Additionally, the bill specifies that the motor vehicle liability insurance policy of the shared vehicle driver will generally be primary, except in cases where the driver’s insurance has lapsed, in which case the car sharing program's insurance will take precedence.

Notably, the bill also addresses scenarios where claims occur in states with higher minimum financial responsibility limits than those required in Maryland. In such cases, the required coverage must meet the higher state standards. Furthermore, the bill allows insurers to exclude coverage for claims arising during the car sharing period under certain conditions, which has sparked debate among stakeholders.

Opposition to the bill has emerged from various consumer advocacy groups who argue that the exclusions could leave drivers vulnerable in the event of an accident. Proponents, however, assert that the bill provides necessary clarity and protection for both drivers and insurers in an evolving market.

The implications of Senate Bill 771 are significant, as it seeks to balance the interests of consumers, insurance companies, and the burgeoning peer-to-peer car sharing industry. Experts suggest that the bill could lead to more standardized practices across the state, potentially influencing similar legislation in other jurisdictions.

As the bill moves through the legislative process, its outcomes could reshape the landscape of car sharing insurance in Maryland, making it a critical point of discussion for lawmakers and industry stakeholders alike.