Senate Bill 771, introduced in the Maryland Legislature on March 12, 2025, aims to clarify and enhance the insurance framework surrounding peer-to-peer car sharing programs. The bill addresses critical issues related to liability and insurance coverage for both vehicle owners and drivers participating in these programs.

One of the key provisions of Senate Bill 771 stipulates that coverage under a motor vehicle liability insurance policy maintained by a peer-to-peer car sharing program cannot be contingent upon the denial of a claim by another motor vehicle insurer. This means that if an accident occurs during a car-sharing transaction, the peer-to-peer program's insurance will apply regardless of whether the personal vehicle owner's insurance has denied a claim. Additionally, the bill prohibits personal motor vehicle insurers from being required to deny a claim before the peer-to-peer program's insurance takes effect.

The legislation also seeks to exempt peer-to-peer car sharing programs and shared vehicle owners from vicarious liability, aligning with federal law that protects vehicle owners from liability solely based on ownership. This provision is designed to encourage participation in car-sharing programs by reducing the legal risks for vehicle owners.

In terms of operational requirements, the bill mandates that peer-to-peer car sharing programs ensure that both the shared vehicle owner and the driver are insured during the car-sharing period. It also introduces specific guidelines for replacement vehicles used in these programs, ensuring that they meet minimum insurance requirements while providing clarity on the coverage status during the vehicle's use.

The introduction of Senate Bill 771 has sparked discussions among lawmakers and stakeholders in the automotive and insurance industries. Supporters argue that the bill will promote the growth of the car-sharing economy by providing clearer insurance protections and reducing liability concerns. However, some critics express concerns about potential gaps in coverage and the implications for traditional insurance models.

The economic implications of this bill could be significant, as it may encourage more individuals to participate in peer-to-peer car sharing, potentially leading to increased competition in the transportation sector. Socially, the bill could facilitate greater access to shared mobility options, aligning with broader trends toward sustainable transportation solutions.

As the legislative process unfolds, the bill's proponents and opponents will continue to debate its provisions, with potential amendments likely to emerge as stakeholders weigh in on its impact. The outcome of Senate Bill 771 could reshape the landscape of car sharing in Maryland, influencing how insurance is structured and how liability is managed in this evolving sector.