| Car Sharing Services Have Their Own Set Of Risks |
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| Written by John Gaddy |
| Thursday, 17 June 2010 16:33 |
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If you live in an urban area, possessing a car is usually both costly as well as a headache. Finding a parking place may compete with finding Osama Bin Laden in its difficulty. Paying for parking can leave a major hole in your wallet. Due to the large quantity of motorists on the road, car insurance charges are usually larger in large cities. Fuel economy suffers during city driving due to the fairly slow rates of speed and regular braking. Consequently, many city residents are saying no to vehicle ownership and relying upon other options. Public transportation continues to be a vital option, but a relatively new idea is taking hold in U.S. cities: car sharing.
If you live in in a big city, possessing a car can be both expensive as well as a headache. Getting a parking spot might rival finding Osama Bin Laden in its difficulty. Spending money on car parking can leave a major hole in your wallet. Because of the large number of drivers on the highway, car insurance charges are usually higher in big cities. Gas mileage suffers during city driving because of the relatively slow speeds and frequent braking. Consequently, many city dwellers are saying no thank you to car ownership and relying upon alternatives. Public transportation continues to be an essential option, however a comparatively new concept is taking hold in a few U.S. metropolitan areas: vehicle sharing. According to CarSharing.net, at the start of 2010 there were 27 car sharing programs in the U.S., serving 388,000 members and sharing 7,500 vehicles. They go by names such as Zipcar, Car2go, City CarShare, and Community Car. The programs impose an annual membership fee and may bill an application fee; Zipcar, for example charges a $50 annual fee and a $25 application fee in the Washington, D.C. area. A separate fee is applicable for each usage of a car (for example, $30 for a four-hour reservation), which includes fuel, insurance, and a given amount of miles. The types of individuals most likely to utilize a vehicle sharing service include: * Those who normally use public transportation but who need their own vehicle on occasion * Those who own one vehicle and from time to time require another * People who own compact vehicles though from time to time need a larger vehicle * Those who can't afford to purchase a car but can spend the money for membership costs * Individuals who wish to steer clear of the annoying aspects of car ownership, like upkeep, costs, and garaging costs * Naturalists worried about the air pollution that comes with car ownership A person using a vehicle sharing service takes risks similar to those she would take while renting a car. She may incur legal responsibility for injuring someone or damaging another's property when using the car. She may suffer injuries in an accident, leading to medical costs and forfeited income. She may havoc the car and be responsible for repair costs. The car sharing service offers liability insurance coverage, however the borrower has no assurance that the level of insurance coverage will be sufficient to cover all of the damages. Also, that insurance might not apply if she allows an unauthorized person to drive, such as a "designated driver" during a night on the town. If she doesn't own a vehicle, she may want to purchase a named nonowner car insurance plan, that'll include liability, medical, as well as uninsured or even underinsured motorist claims in addition to what the car sharing service's policy offers. Additionally, some umbrella policies may cover damage to a borrowed vehicle if the vehicle sharing service's plan doesn't pay. An expert insurance agent could determine insurers that provide these kinds of coverages and explain the differences in protection and cost of the different policies. For folks living in areas where it's available, vehicle sharing can be a very reasonable option to owning a car. Like every special service, it carries particular risks. Nonetheless, by making some simple arrangements beforehand, drivers can take advantage of these types of services and always be assured that they have reduced their financial risks. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Stressed about your car insurance needs? Check out 123insurancequotes.net for expert assistance on selecting the best protection. |