Bipartisan push for car sharing regulations introduced in Michigan Legislature

Detroit, MI — A bipartisan legislative package, including HB 5949, HB 5950, and HB 5951, has been introduced in the Michigan House of Representatives to establish essential regulations for the peer-to-peer car sharing industry. This package aims to safeguard consumers, ensure public safety, and clarify insurance requirements for this growing marketplace.

Representatives Tyrone Carter, Brenda Carter, and Matthew Bierlein have collaborated to bring this package forward, recognizing its importance to their districts and the state.

"I’ve heard from many residents of my district who use car sharing to supplement their income and better support their families through tough times,” said Rep. Tyrone Carter. “The flexibility offered by this emerging industry is great, but we need smart regulations to protect both drivers and car owners so the benefits of car sharing can continue uninterrupted in Michigan.”

“Car sharing is a response to the growing need for affordable transportation options in Southeast Michigan. Legislative work to put a structure around this distinct industry will ensure the viability of shared mobility in our region and better economic opportunity for residents,” said Rep. Brenda Carter.

The legislation introduces a clear framework for peer-to-peer car sharing, addressing key areas:

  • Insurance Coverage: Ensuring adequate insurance is in place for every transaction, protecting drivers, vehicle owners, and all those who share the road with shared vehicles.

  • Consumer Protection: Enhancing protections for participants by mandating disclosures of insurance and indemnification provisions, associated fees, and other terms and conditions of car sharing agreements.

  • Public Safety: Prohibiting the use of vehicles subject to federal safety recalls and requiring platforms to track and retain critical information, such as the timing of car sharing, for insurance claims and accident investigations.

Modeled after the Peer-to-Peer Car Sharing Program Act by the National Council of Insurance Legislators (NCOIL), the package modernizes Michigan’s laws to align with the 27 states that have already adopted similar regulations. With support from organizations like the National Association of Mutual Insurance Companies (NAMIC) and the American Property Casualty Insurance Association (APCIA), the NCOIL model act ensures both innovation and safety coexist in the car-sharing industry.

“Putting a framework in statute will ensure the safety and protection for individuals who use this service, while providing new economic opportunities,” said Rep. Matthew Bierlein.

Peer-to-peer car sharing platforms, such as Turo, allow Michigan residents to rent out their vehicles, providing an additional income stream while offering drivers a flexible, affordable mobility option. Car sharing host Lavell Riddle, who shares his cars in Michigan, highlighted the benefits:

“I started as a Turo host in 2021. Now I can have my assets working, even when I'm sleeping, on vacation, etc. I got into Turo to help people and make extra money, but I didn't realize how much it was solving problems for people until I became a host and heard the testimonies customers told me.”

Peer-to-peer car sharing’s impact is broad, reaching communities and providing accessible transportation options to a wider population.

With this legislative effort, Michigan is poised to create a robust regulatory framework for car sharing, ensuring the industry can thrive while protecting consumers and communities across the state. Now, it’s up to policymakers to establish these much-needed “rules of the road.”

MichiganCatherine Mejia