Personal Vehicle Sharing

Reference Statute ORS 742.585-742.600

Oregon's personal vehicle sharing program is well-defined in Oregon Revised Statute (ORS) 742.585-742.600 to protect both insurers and policyholders. The Oregon Insurance Division has reviewed and approved a number of form filings submitted by insurers to clarify their personal auto insurance contracts and exclude coverage where allowed by the new law.

A large percentage of the 130-plus insurers that write personal auto coverage in Oregon has chosen not to make any change in their auto contract for private passenger autos. We want insurers to be aware of the law, which went into effect January 1, 2012. The Division has established guidelines for acceptable policy language tied directly to the wording of the law.

Guidelines for acceptable amendments and language:

• No amendment should be allowed that would broaden the definition of the terms "personal vehicle sharing" or "personal vehicle sharing program" for Oregon beyond what is stated in the definition included in the law.
• On a case by case basis, we may allow separate amendments that exclude coverage for legally authorized personal vehicle sharing programs in OTHER states. We would want the language to specifically state that the excluded program is a legal entity qualified to do business by state authority in the state being excluded. This language should be separate from any amendments that define and exclude coverage for personal vehicle sharing as defined by statute in Oregon.
• The language must be clear and understandable to the policyholder.

If you have questions, please contact Cece Newell, CIC, PIR, Policy Analyst at cece.newell@state.or.us or 503-947-7203.