Requires peer-to-peer car sharing programs to maintain physical damage coverage for shared vehicles during the car sharing period

House Bill 625 amends Louisiana Revised Statutes 22:1300.9 to establish mandatory insurance requirements for peer-to-peer car sharing programs. The bill removes language that previously shielded peer-to-peer car sharing programs from liability to maintain certain insurance coverage and replaces it with an affirmative obligation requiring these programs to own and maintain physical damage insurance policies as the named insured. Specifically, if a peer-to-peer car sharing program does not already provide coverage for physical damage, collision, and comprehensive losses to shared vehicles during the car sharing period, the program must obtain and maintain a policy written by an insurer admitted or approved in Louisiana that covers such physical damage losses. The new statute applies only when the shared vehicle owner's insurance policy excludes or fails to provide physical damage coverage for collision and comprehensive losses during the car sharing period.

Peer-to-peer car sharing programs operating in Louisiana will be directly affected by this mandate, as they must now obtain supplemental physical damage insurance policies if they do not already provide such coverage themselves. Vehicle owners who participate in peer-to-peer car sharing arrangements benefit from this requirement as it ensures a backstop insurance mechanism exists when their personal policies do not cover collision and comprehensive damage during the sharing period. Drivers using shared vehicles through these programs also gain protection through the mandatory coverage requirement. The requirement creates a new market for insurance products tailored to peer-to-peer car sharing platforms and may increase operational costs for these programs, though they retain the ability to structure the insurance with deductibles up to one thousand dollars per occurrence.

This legislation operates within Louisiana's existing regulatory framework for peer-to-peer car sharing programs established in R.S. 22:1300 et seq., which previously authorized but did not require these programs to maintain certain insurance policies. By removing the liability shield in subsection B and creating an affirmative duty in the revised subsection C, the bill strengthens consumer protections while maintaining flexibility through permissible deductible levels and subrogation rights. The requirement that insurers be admitted or approved in Louisiana ensures regulatory oversight through the Louisiana Department of Insurance and guarantees that insureds have access to the state's insurance guaranty fund protections if an insurer becomes insolvent. This amendment represents a shift from a permissive insurance framework to a mandatory one, establishing clearer insurance responsibilities within the peer-to-peer car sharing regulatory scheme.