Renting Your Car on Peer-to-Peer Apps in Colorado: What State Law Requires
With ski visitors, business travelers, and a steady stream of newcomers, the Denver area has plenty of demand for peer-to-peer car rentals. The insurance side of listing a car is more involved than it looks, and Colorado is one of the states with a specific law on it: the Peer-to-Peer Car Sharing Act, passed in 2019.
How Coverage Shifts Around the Sharing Period
Before the Rental Starts
When your car isn’t being shared, your personal auto policy works as usual. Colorado law generally prohibits an insurer from refusing to cover your car outside of sharing just because you list it, as long as you’ve given complete and accurate information. Car sharing programs must also tell owners that sharing a car may violate the terms of a loan or lien, so check with your lender.
During the Sharing Period
- The car sharing program generally must assume the owner’s liability for injuries and property damage to others, at least up to Colorado’s minimum required amounts.
- The insurance that meets the law’s requirements is primary during the sharing period.
- Your personal auto insurer may exclude coverage for claims that happen while the car is being shared.
- Damage to your own car is a separate question, often handled through the platform’s protection plan, with terms that vary.
After the Car Comes Back
Once the sharing period ends, your personal policy generally applies again. Photos at pickup and return help if damage is disputed.
Other Rules Worth Knowing
The law also requires programs to verify drivers’ licenses and keep certain records, and it requires owners to remove a car from sharing when it has an open safety recall that hasn’t been repaired.
Questions to Ask Before Listing
- Does my personal policy exclude car sharing, and when?
- What protection plan will I choose on the platform?
- Does my lender allow car sharing?
Siegfried Insurance Group in Denver, CO can review your auto insurance before you list a car. An attorney can help with agreement questions. Drivers across Denver, CO and the Front Range can reach out to Siegfried Insurance Group or browse our insurance blog.
