You have undoubtedly read about (and perhaps even used)  a personal vehicle sharing program (also known as a peer-to-peer car sharing program) like Turo, which allows you to rent another person’s car for a defined period of time.  Turo puts car owners together with people who have a short-term need for a vehicle.  Need a 2018 Porsche Macan in Chicago?  $312, unlimited miles.

But what happens if the driver of that vehicle causes a wreck?  Does the car owner’s liability insurance apply?  Is there liability on behalf of Turo?  Does the liability insurance of the driver apply?

And what if the wreck is caused by the driver of another vehicle?  Does the UM/UIM coverage on the shared vehicle apply?   Or will coverage be denied because the car owner received money for sharing the vehicle?

These issues are discussed in this timely article, Sharing is caring with proper auto insurance:  why car sharing can’t catch a brake.

Here is what a recent (2021) Tennessee statute says liability insurance in these circumstances:

(f) Except as otherwise provided for in this section:

(1) The insurance described in subsection (e) that is used to satisfy the insurance requirement of subsection (d) is primary during each car sharing period;

(2) If coverage is applicable through more than one (1) motor vehicle liability insurance policy as set forth in subdivision (e)(4), then the order of priority of coverage is as follows, unless one (1) policy contains a provision affirmatively stating that the policy’s coverage is primary and thereby is primary during the car sharing period:

(A) A policy maintained by the shared vehicle driver is first in priority;

(B) A policy maintained by the peer-to-peer car sharing program is next in priority; and

(C) A policy maintained by the shared vehicle owner is last in priority; and

(3) If coverage is applicable through more than one (1) motor vehicle liability insurance policy as set forth in subdivision (e)(4) and more than one (1) of those policies contain a provision affirmatively stating that the policy’s coverage is primary, then the order of priority of coverage is as described in subdivisions (f)(2)(A)-(C).

(g)(1) The peer-to-peer car sharing program shall assume primary liability for a claim when:

(A) The peer-to-peer car sharing program is in whole or in part providing the insurance required under subsections (d) and (e);

(B) A dispute exists as to who was in control of the shared motor vehicle at the time of the loss; and

(C) The peer-to-peer car sharing program does not have available, did not retain, or fails to provide the information required by § 55-12-305.

(2) The peer-to-peer car sharing program may seek indemnity from a shared vehicle owner if the shared vehicle owner is determined to have been the operator of the shared vehicle at the time of the loss.

(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 coverage required by subsection (d), then:

(1) Insurance maintained by a peer-to-peer car sharing program must provide the coverage required by subsection (d) beginning with the first dollar of a claim; and

(2) The peer-to-peer car sharing program has the duty to defend the claim, except under circumstances as set forth in subsection (b).

(i) Coverage under a motor vehicle liability insurance policy maintained by the peer-to-peer car sharing program is not dependent on another insurer first denying a claim nor is another motor vehicle liability insurance policy required to first deny a claim.