The Business Council of New York State, Inc., the State’s largest business and industry association, supports S.427 (Seward). This legislation creates a new Article 35 in the state’s insurance law, “Personal Motor Vehicle Sharing Programs,” which provides a framework for insurance coverage for vehicle owners and renters participating in personal vehicle sharing programs in the State.
Vehicle sharing and other “collaborative consumption” innovations have several benefits to consumers and the economy as a whole. The utilization of these underused assets allows vehicle-sharers to pay less than they would have if they bought or rented a vehicle and allows a greater number of people to need a smaller number of vehicles, saving the resources, energy and physical space that would have otherwise been used.
The growth of the “share economy” is an expanding part of the State’s economic fabric. In 2014, FORBES estimated that the revenue flowing through the “share economy” surpassed $3.5 billion with growth expectations exceeding 25%. It is important that New York be part of this growth in a thoughtful and responsible manner. By requiring that group policy insurance be in place for vehicles taking part in vehicle sharing, this bill provides a balanced approach to the necessary protections for consumers, insurers and the public at large.
The share economy has been the biggest consumer movement in the last few years, continuing to bring the internet’s value to consumers. New York should continue to foster growth by reasonable and responsible policy such as this bill.
For these reasons, The Business Council supports S.427 (Seward).