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California close to personal car-sharing insurance

Posted On Fri, June 4, 2010

Many people share their vehicles and pay for their own car insurance, but a new California law would allow for individuals to enter their private cars into car-sharing services without voiding their own insurance.

The bill, which passed the California State Assembly unanimously on Thursday, will allow for improvements in economic, environmental and traffic problems across the state, according to a report from the San Francisco-based environmental transportation site Streetsblog.

While consumers are currently permitted to enter their cars into such services, like ZipCar, California law allows their insurers to cancel their policies if the owner gets money from the service.

"Usually the cost of owning a car is $400-800 a month, assuming it's a reasonably nice car," Sunil Paul, a CEO of one such company, told the site. "If you earn a couple hundred bucks a month, that goes a long way toward covering your expenses."

A report from KGTV in San Diego says that a proposition on next week's ballot could change the rates Californians pay for their auto insurance, though there has been some debate as to whether the proposition would benefit drivers or insurance companies.ADNFCR-2297-ID-19820193-ADNFCR

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