Three tips for creating your own car-sharing group

Car sharing has been a popular way of helping drivers cut back on their driving. The reasons individuals choose to participate in car-sharing are varied – anything from cost-savings to reduced environmental impact. Unfortunately car sharing isn't accessible in all cities. Starting your own car-sharing program could be a legitimate option – but you will find certainly a couple of things to keep in mind.

Resource for this article: 3 tips for creating your own car-sharing group By Personal Money Store

1 – Who will own the automobile?

The first thing you should figure out is who’ll be responsible for the vehicle. Someone will have to be in charge of the money and maintenance of the automobile unless you start some kind of business out of it. There needs to be a basic contract that is signed by anyone sharing the vehicle.

2 – Insurance

No matter who is driving it, the insurance needs to cover the car. If the driving time is shared 30 to 40 percent of the time, check laws with your state to know what to do. You might not end up ever getting your money if there is an accident and also you haven't told your insurance company the car is regularly used by others. The other option is to ask all members of the car-sharing network to get their own “non-owner policy” or “broad form” policy – both of which cover only the driver.

3- The cost of sharing

One of the most difficult things is probably figuring out cost sharing amounts. The monthly payments, if the car is not paid for, should be kept separate from the operating costs of the car. You can split the monthly payment as a monthly fee of sharing the car. Also take into consideration operating costs. One option is to sit down and add the maintenance, fuel, and insurance costs for the car together. Divide that total by either the number of people sharing the car – or by the number of miles you are expecting to drive the car. Alternately, set a “per mile” rate for the car, intended to cover all the operating costs. The U.S. federal government sets the per-mile cost of automobile use at 50 cents per mile. The price will likely be around 50 cents and up to $1.

It will be worth it to figure out what will officially be the costs of sharing. Until ZipCar, Hertz Go, or some other car-sharing network makes it to your city, it could be a great way to reduce your cost and reduce your environmental impact.