If you reside in in a big city, owning a vehicle can be both costly as well as a hassle. Finding a parking spot may rival locating Osama Bin Laden in its difficulty. Spending money on parking can leave a significant hole in your wallet. Due to the sheer quantity of drivers on the road, car insurance charges are usually higher in large cities. Fuel economy is reduced during city driving because of the fairly slow rates of speed and regular halts. As a result, many city residents are saying no thanks to car ownership and relying upon alternatives. Mass transit remains an essential option, however a somewhat new concept is taking over in many U.S. cities: car sharing.

According to CarSharing.net, at the beginning of 2010 there were 27 car sharing programs in the U.S., helping 388,000 members and sharing 7,500 vehicles. They go by names such as Zipcar, Car2go, and Community Car. The programs charge a yearly membership fee and may bill an application fee; Zipcar, for example charges a $50 annual fee and a $25 application fee in the Washington, D.C. area. Another charge applies for each use of a car (for example, $30 for a four-hour reservation), which includes fuel, insurance, and a specific amount of miles.

The types of individuals most likely to use a vehicle sharing service include:

* People who usually make use of the bus but who require their own vehicle sometimes

* People who own one vehicle and occasionally require a second

* People who own cars though from time to time require a larger vehicle

* Those who do not want to buy an automobile but could afford the membership fees

* Those who wish to steer clear of the bothersome elements of car ownership, like maintenance, fees, and parking costs

* Naturalists concerned about the pollution that comes along with vehicle ownership

A person using a vehicle sharing service undertakes risks similar to those she would take when driving a rental car. She may have legal responsibility for injuring someone or harming another’s property while using the car. She may suffer injuries in an accident, resulting in medical expenses as well as forfeited income. She may wreck the car and become responsible for repair costs. The car sharing service provides liability insurance coverage, but the borrower does not have any guarantee that the amount of insurance coverage is going to be sufficient to pay all the damages. Additionally, that insurance might not apply if she allows an unauthorized individual to drive, like a “designated driver” during a night around town. If she does not own a vehicle, she should obtain a named nonowner car insurance policy, that’ll include liability, medical, and uninsured or even underinsured motorist losses over and above what the car sharing service’s plan supplies. Additionally, certain umbrella policies may cover damage to a borrowed car if the car sharing service’s plan won’t pay. A professional broker could determine insurance companies that offer these types of coverages and make clear the differences in coverage as well as price of the various policies.

For people residing in areas where it is available, vehicle sharing can be a very practical option to owning a car. As with any unique service, it carries certain risks. Nonetheless, by making some basic plans in advance, motorists can take advantage of these types of services and be self-assured that they have limited their financial risks.

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