Car-sharing, while it may sound like a new thing, has been around for a while. Ride-sharing got all the attention and took off rapidly. Car-sharing has moved along without a lot of press, but is gaining in popularity. Car-sharing allows someone to rent their vehicle to others when they are not using it. Similar to ride-sharing, someone who is willing to rent their car signs up with a network company. The person provides information on their vehicle as to year, mileage, and other information in order to develop a vehicle profile. Some have mileage and age of vehicle restrictions in order for vehicles to be eligible to be rented. Then the owner lists times when the vehicle is available for rent; some companies allow the owner to set the rates while other companies establish the rate.

However, that is only the beginning. In order for this to work, renters must be screened so that an individual can be sure he's not renting his vehicle to someone with a suspended or revoked license, or has a history of speeding and DUIs. Most companies will pull driving records, although some just look for a photo of a valid drivers' license. This is false security, since someone can still have the actual license in their possession while the license is revoked, suspended or full of serious violations. The actual driving record is what must be reviewed, not the actual license. Justshareit requires renters to have no more than two violations or accidents combined in the past three years, and no major violations or alcohol/drug related incidents in the past three to seven years. Zipcar states that those joining in Michigan who are under twenty-one have no major violations, incidents or alcohol or drug-related violations are allowed. Major violations are speeding twenty miles over the limit, reckless driving, operating to endanger, leaving the scene of an accident with property damage, driving with a suspended or revoked license, or speeding in a school zone or similar offense. Zipcar does not list eligibility for those over twenty-one, although it reserves the right to deny an application based on factors at Zipcars discretion.

Once approved by a service, renters can view photos and decide which vehicle to rent. The renter and owner determine where to meet to handoff the vehicle; Getaround installs a feature to the car that allows the owner to park it in one spot so the renter can pick it up there later. Return is handled the same way. Zipcar has something similar; it issues a card the renter uses to access the vehicle without having to meet the owner directly.

Benefits for the owner are that they can make the car pay for itself while renting it out. The owner can rent the car out during the day earning money for the owner while the owner is at work. Renters benefit by not needing to own any or at least as many vehicles if they can rent on an as needed basis and readily pick up a vehicle without having to go to a rental agency and complete paperwork. A renter can even rent a variety of cars from what is available in the local area. A renter may rent a truck to carry mulch when doing yardwork one weekend, and then rent a sedan for a family vacation. However, the devil is in the details.

When writing a personal auto policy, the carrier wants to review the driving and accident history of all drivers in the household. If multiple unknown individuals are using the vehicle, the carrier cannot rate the policy properly. Underwriters always look for undeclared drivers, or drivers that appear on accident reports but are not listed on the policy. Likewise, an exclusion exists for use of the vehicle while it is being used as a public or livery conveyance. This has generally been taken to mean that the insured is using the vehicle to transport people or items. However, what about actually letting someone else drive the vehicle for a fee? Does this fit the public or livery exclusion? Livery and conveyance are straightforward; livery is delivering goods, and a conveyance is a means of transporting something. Merriam Webster defines public as “of or relating to people in general”, “exposed to general view”, or “of, relating to, or being in the service of the community or nation”. When signing up to share one's vehicle, it is offered for service to anyone willing to pay the fee, which would include the general community; this fits the definition of public. Therefore, the standard exclusion will apply, although it may be revised in later forms, the way ride-sharing has been excluded in the 2018 edition of the ISO personal auto form. Which leaves those willing to let strangers drive their cars without coverage, at least from their own policy. Even without the exclusion, most underwriters would be loath to write a vehicle where any number of unlisted drivers might be driving the vehicle on any given day.

However, similar to ride-sharing, network companies provide coverage to the owners for liability, UM, PD, and PIP. PIP seems to be at the state level. While many companies such as Turo provides $1 million in liability coverage, Justshareit provides three times the state minimum up to $1 million in liability coverage, and others such as Zipcar provide just 100/300/25 or other amounts. Justshareit only provides insurance coverage in California, Virginia, Texas and Oregon; in other states, the renter must have his own coverage. Owners under twenty-one only received the minimum financial responsibility limits within the jurisdiction when using Zipcar. Deductibles vary as well, and may be as much as $3,000. While the liability limits are generally high, the property damage, uninsured and underinsured limits vary significantly.

Rental car companies, however, feel significantly threatened, as did taxis with the development of ride-sharing. Rental car companies believe that Turo and other companies should comply with state and federal laws that govern rental cars just like any other rental car company. The car-sharing network companies claim that they do not own the cars; therefore, they should fall into different categories and should not have to abide but standard rental car regulations. Like the ride-sharing networks, the car-sharing networks say they are technology platforms that allow owners to earn extra cash, and are not rental companies. The rental car industry is not letting the grass grow under its feet; it has introduced bills in several states that would create regulations that would treat car-sharing companies like standard rental companies.

One particular area of concern is airports. In many airports, you must ride a shuttle to a separate lot and then get in line to get your paperwork done and the keys to your vehicle. With car-sharing, some owners will meet the renter at the airport and turn over the keys, allowing the renter to get on his way quickly. In addition, airports themselves earn billions of dollar annually in leasing lots to rental car companies. There is a lot to be lost for the rental companies and airports if car-sharing becomes as popular as ride-sharing. Enterprise Rent-a-Car is a company speaking up for rental car companies, and introduced bills in some states to force car-sharing companies to collect sales tax, conduct safety inspections and follow other procedures. Meanwhile, Enterprise has also decided to join the movement and has developed Enterprise CarShare, where they park vehicles within the community in designated locations, and individuals sign up for membership. Cars can be rented by the hour, day, or overnight, and there is a large variety of the cars available since private individuals and not the company owns the vehicles. For renters there is a membership fee and a one-time application fee. The standard fees vary from as low as $3 an hour up to $70 a day, and the membership fee ranges from $35 to $50 and the application fee ranges from $10 to $20; the application fee seems to commonly be waived, and the membership fee discounted. Like a standard rental agreement, potential members must be twenty-one or older except for a few university campuses, have a valid drivers license and major credit card. The service is available in limited states and several universities. This allows Enterprise to both rent cars the traditional way and take advantage of the car-sharing phenomena.