South Carolina § 56-36-20 - Car sharing programs; insurance coverage; assumption of liability.

§ 56-36-20. Car sharing programs; insurance coverage; assumption of liability.

(A) Except as provided in subsection (B), a peer-to-peer car sharing program shall assume liability of a shared vehicle owner for any death, bodily injury, or property damage to third parties or uninsured motorist losses that are proximately caused by the operation of a shared vehicle during the car sharing period in the amounts stated in the car sharing program agreement. These amounts shall not be less than the amounts specified in Section 38-77-140 and Section 38-77-150.

(B) Notwithstanding the definition of "car sharing termination time" in Section 56-36-10, the assumption of liability pursuant to subsection (A) does not apply if:

(1) the shared vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the program before the car sharing period in which the loss occurred; or

(2) the shared vehicle driver and shared vehicle owner conspire to have the driver fail to return the shared vehicle in violation of the agreement.

(C) Notwithstanding the definition of "car sharing termination time" in Section 56-36-10, the assumption of liability under subsection (A) applies to death, bodily injury, and property losses by damaged third parties required by Section 38-77-140 and uninsured motorist losses by damaged third parties required by Section 38-77-150.

(D) A peer-to-peer car sharing program shall ensure that, during each car sharing period, the shared vehicle owner and the shared vehicle driver are each insured under a motor vehicle insurance policy that provides insurance coverage in amounts no less than the minimum amounts set forth in Section 38-77-140; and

(1) recognizes that the shared vehicle insured under the policy is made available and used through a peer-to-peer car sharing program; or

(2) does not exclude the use of a shared vehicle by a shared vehicle driver.

(E) The insurance coverage required under subsection (D) may be satisfied by motor vehicle liability insurance maintained by:

(1) a shared vehicle owner;

(2) a shared vehicle driver;

(3) a peer-to-peer car sharing program; or

(4) any combination of a shared vehicle owner, shared vehicle driver, or a peer-to-peer car sharing program.

(F) The insurance described in subsection (E) that is satisfying the insurance requirement of subsection (D) shall be primary during each car sharing period. If a claim occurs in another state with minimum financial responsibility limits higher than those set forth in Section 38-77-140 and Section 38-77-150 during the car sharing period, then the coverage maintained under subsection (E) shall satisfy the difference in minimum coverage amounts up to the applicable policy limits.

(G) The insurer or peer-to-peer car sharing program providing the coverage under subsection (D) or (E) shall assume primary liability for a claim when:

(1) a dispute exists regarding who was in control of the shared vehicle at the time of the loss and the peer-to-peer car sharing program does not have available, did not retain, or fails to provide the information required by subsection (M); or

(2) a dispute exists regarding whether the shared vehicle was returned to the alternatively agreed upon location as required under Section 56-36-10(6)(b).

(H) If insurance maintained by a shared vehicle owner or shared vehicle driver in accordance with subsection (E) has lapsed or does not provide the required coverage, then insurance maintained by a peer-to-peer car sharing program shall provide the coverage required by subsection (D) beginning with the first dollar of a claim and shall have the duty to defend such claim except under circumstances as set forth in subsection (B).

(I) Coverage under an automobile insurance policy maintained by the peer-to-peer car sharing program shall not be dependent on another automobile insurer first denying a claim nor shall another automobile insurance policy be required to first deny a claim.

(J) Nothing in this chapter limits:

(1) the liability of the peer-to-peer car sharing program for any act or omission of the peer-to-peer car sharing program that results in injury to any person as a result of the use of a shared vehicle through a peer-to-peer car sharing program; or

(2) the ability of the peer-to-peer car sharing program, by contract, to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss resulting from a breach of the car sharing program agreement.

(K) When a shared vehicle owner registers with a peer-to-peer car sharing program and before the shared vehicle owner makes the shared vehicle available for sharing, the peer-to-peer car sharing program shall notify the owner that, if the shared vehicle has a lien against it, the use of the shared vehicle through a peer-to-peer car sharing program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.

(L)(1) An authorized insurer that writes motor vehicle liability insurance in this State may exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a shared vehicle owner's motor vehicle liability insurance policy including, but not limited to:

(a) liability coverage for death, bodily injury, and property damage;

(b) uninsured and underinsured motorist coverage;

(c) medical payments coverage;

(d) comprehensive physical damage coverage; and

(e) collision physical damage coverage.

(2) Nothing in this chapter invalidates or limits an exclusion contained in a motor vehicle liability insurance policy, including any insurance policy in use or approved for use that excludes coverage for motor vehicles made available for rent, sharing, or hire or for any business use.

(3) Nothing in this chapter invalidates, limits, or restricts an insurer's ability under existing law to underwrite any insurance policy. Nothing in this chapter invalidates, limits, or restricts an insurer's ability under existing law to cancel and non-renew policies.

(M)(1)(a) A peer-to-peer car sharing program shall collect and verify records pertaining to the use of a shared vehicle including, but not limited to:

(i) times used;

(ii) car sharing period pickup and drop off locations;

(iii) fees paid by the shared vehicle driver; and

(iv) revenues received by the shared vehicle owner.

(b) Upon request, the program shall provide that information to facilitate a claim coverage investigation, settlement, negotiation, or litigation to:

(i) the shared vehicle owner;

(ii) the shared vehicle owner's insurer; and

(iii) the shared vehicle driver's insurer.

(2) The peer-to-peer car sharing program shall retain the records for no less than the duration of the applicable personal injury statute of limitations.

(N) A peer-to-peer car sharing program and a shared vehicle owner shall be exempt from vicarious liability consistent with 49 U.S.C. Section 30106 and under any state or local law that imposes liability solely based on vehicle ownership.

(O) A motor vehicle insurer that defends or indemnifies a claim against a shared vehicle that is excluded under the terms of its policy shall have the right to seek recovery against the motor vehicle insurer of the peer-to-peer car sharing program if the claim is:

(1) made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing period; and

(2) excluded under the terms of its policy.

(P)(1) A peer-to-peer car sharing program shall have an insurable interest in a shared vehicle during the car sharing period.

(2) Nothing in this section requires a peer-to-peer car sharing program to maintain the coverage mandated by this section.

(3) A peer-to-peer car sharing program may own and maintain as the named insured one or more policies of motor vehicle liability insurance that provides coverage for:

(a) liabilities assumed by the peer-to-peer car sharing program under a car sharing program agreement;

(b) any liability of the shared vehicle owner;

(c) damage or loss to the shared motor vehicle; or

(d) any liability of the shared vehicle driver.

HISTORY: 2025 Act No. 20 (S.307), SECTION 1, eff May 8, 2025.