Over the past few years, the sharing economy has rapidly expanded. From ride-sharing, car-sharing and home-sharing, many people have found ways to make money using their own property or letting others use their own property. People are using their cars to give rides to passengers, or are letting others use their vehicles while they are at work or are not using the vehicle. Even rental car agencies have begun various modifications to the rental practice; Enterprise has a CarShare program now where vehicles are parked in various areas and people can rent them by the hour, day, or overnight to fit whatever need they have at the time.
Others are renting out their homes or rooms in their homes to others who want to vacation in that area. The latest craze is scooter rental. Electric, two-wheeled scooters have begun appearing on city streets and are available for individuals to rent. There are a number of providers in various cities and college campuses. Lime, Bird, Spin, Scoot, and Jump, which is now owned by Uber, all provide electric scooters for individuals to rent to travel short distances around town. Most of the scooters are the kind that has two small wheels, and you stand on a small board, with tall handles that you use to steer the vehicle. In the past these scooters ran under your own power by pushing off against the ground with one foot; now they are electrified, and the user stands on the board, starts the scooter and drives along. Jump's scooters are more like a moped than a scooter, with larger wheels and a seat for the driver.
|Scooters
The vehicles are available at various locations around the town; some are docked, but many are dockless. The user signs up via a smart phone app, similar to a ride-sharing app, and picks up a scooter at a given location, starts the vehicle and takes off. There are significant rules to using a scooter and many states have regulations regarding where the vehicles can be ridden and helmet requirements. In California, motorized scooters such as are described here are not required to be registered, have license plates or be insured. Riders must be at least 16 years old, possess a valid driver's license or permit, and wear a helmet. They may be operated on a bike path, trail or bikeway but not a sidewalk, and on the street must be in a bike lane if there is one. The scooters may operate on roads without bike lanes but the scooter can only be operated where the speed limit is 25 mph or less, and the scooter must be operated in the far right lane as close to the curb as possible except for passing or turning left. Texas laws are similar; riders must stay as close to the curb as possible and are limited to roads where the speed limit is 35 mph or less. Licenses, registration, insurance and inspection are not required. Cities, counties and the Department of Transportation may prohibit use of scooters on particular streets or highways in the interests of safety.
The companies renting the scooters have their own rules. First, scooters are to be ridden in bike lanes or on the street, not on the sidewalk. Users are to have drivers' licenses, be over 18 years old, wear a helmet, and acknowledge that they are familiar with the use and operation of the scooter. Scooters are to be parked out of the way of pedestrians, in areas close to the street or by signposts or under trees. All of these requirements are outlined by the companies not only in the often-ignored user agreement, but appear prominently on the web pages under use of the scooter. Some offer training classes for first time users. Some provide helmets to users as well. All prohibit allowing two people to ride on a scooter, and they prohibit carrying briefcases or other packages that would hinder proper driving of the vehicle. A few bikes have baskets to put a few items in.
Even though these are fairly new, several problems have become apparent. Irresponsible riders are leaving scooters anywhere, and injuries such as broken toes have been reported by pedestrians tripping over scooters in the way. Some users are driving too fast and recklessly, and aren't paying attention, risking injury to others. Others aren't wearing helmets as required and are being injured. Some companies have modified the speeds on scooters from 22 mph to 15, to reduce injuries if there is an accident. Some areas are also issuing tickets to those riding on sidewalks, as in many areas it is against local traffic laws.
|Liability Coverage
Liability is of course a significant issue. In case of an accident where the driver or a pedestrian is injured by actions of a scooter driver, who is responsible for the loss? The scooter companies all have extensive waivers of liability and hold harmless agreements, stating that they are not responsible for actions of the renter of the scooter, injuries, or property damage that may be caused by the renter's use of the scooter. The user agreements also state that the vehicle may malfunction even if it is property maintained and that the rider assumes the risk of riding the vehicle, and that the rider releases the company and its employees from all responsibility for injury, damage, or cost caused by the rider with respect to any person or property, including the vehicle itself. The rider acknowledges that he may be responsible for any injuries or damages, and that the rider uses the vehicle at his own risk to the fullest extent of the law. The agreements among all the rental companies are very similar.
|Homeowners Policy
Therefore, the rider has waived liability against the company providing the scooter and has assumed responsibility for injury or damages she may cause. So what happens if the rider does cause an injury to another person, or damages another's property? Under the standard homeowners policy, "motor vehicle" is defined as "a self-propelled land or amphibious vehicle". This would include a motorized scooter, since there is no specification that the property be registered by the state. Under the liability section of the policy, motor vehicles are excluded. There are exceptions from the main exclusions for vehicles in dead storage, used to service the premises, designed to assist the handicapped, and designed for recreational use off public roads. The scooters however, are designed for use on public roads. The next exceptions to the exclusion all fall under vehicles designed for recreational use off public roads, which does not apply to the scooters. There are varying parameters under this exception, but the first part must be met before the other sections apply, and it does not since the scooters are designed for use on public roads. The final exception is for golf carts, and scooters are not golf carts.
The additional coverage for damage to property of others again has an exclusion for motor vehicles with exceptions but again, the vehicles must be designed for recreational use off public roads, not be owned by an insured and not be required by law to be registered for use on public roads. Even the endorsements do not apply; the Incidental Low Power Recreational Motor Vehicle Coverage Endorsement HO 24 13 excludes motorized bicycles or scooters.
|Auto Policy
Turning to the auto policy, there is the Miscellaneous Type Vehicle Endorsement PP 03 23. The form itself states that a "miscellaneous type vehicle" is a motor home, motorcycle or similar type vehicle, all-terrain vehicle, dune buggy or golf cart. This would not include scooters, especially since under exclusions liability coverage does not apply for the ownership, maintenance or use of a vehicle with fewer than four wheels. There are no endorsements, under either the homeowners program or auto program that extend liability coverage for the use of these vehicles. It is doubtful that people using these scooters have considered that they may not be covered by their home or auto policies. However, having carefully reviewed the language, there is no coverage under either form, or an endorsement with which to provide such coverage.
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