Senate Bill 771, introduced in the Maryland Legislature on March 12, 2025, aims to regulate peer-to-peer car sharing programs by establishing insurance requirements for both vehicle owners and drivers. The bill addresses the growing popularity of car sharing services, ensuring that participants are adequately protected during the sharing period.

The key provisions of Senate Bill 771 mandate that all shared vehicles must be insured under a motor vehicle liability insurance policy that meets or exceeds the minimum coverage requirements outlined in Maryland's Transportation Article. This insurance must explicitly recognize the vehicle's use in a peer-to-peer car sharing context and cannot exclude coverage for shared vehicle drivers. The bill allows for flexibility in how insurance coverage is obtained, permitting it to be provided by the vehicle owner, the driver, the car sharing program itself, or any combination of these parties.

Notably, the bill also defines a "replacement vehicle" as one used in the car sharing program while the driver's personal vehicle is unavailable due to loss or maintenance. However, it specifies that the Maryland Automobile Insurance Fund is not obligated to cover shared vehicle drivers for vehicles that do not qualify as replacement vehicles.

Debate surrounding Senate Bill 771 has focused on the implications for insurance companies and the potential impact on the car sharing market. Proponents argue that the bill will enhance consumer protection and clarify liability issues, while opponents express concerns about the increased costs of insurance that could deter participation in peer-to-peer car sharing.

The economic implications of the bill could be significant, as it may influence the growth of the car sharing industry in Maryland. By ensuring that all parties are adequately insured, the bill aims to foster a safer environment for users, potentially leading to increased consumer confidence in these services.

As the bill progresses through the legislative process, stakeholders from the insurance and car sharing sectors are closely monitoring its developments. If passed, Senate Bill 771 could set a precedent for similar regulations in other states, shaping the future of peer-to-peer car sharing nationwide.