Some tips for creating your own car sharing group

Car sharing has been a popular way of helping drivers cut back on their driving. Individuals will choose to be in a car sharing group for various reasons. Car sharing is not accessible in each and every city across the nation yet, though. Beginning your own car sharing could be a good option but you should keep a few things in mind.

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

1- Who's going to own the automobile?

The first thing that needs to be decided is who will ultimately be responsible for the vehicle. Unless you start some kind of business out of it, someone needs to be in charge. There should be a basic contract signed by all riders.

2 – the insurance

The insurance needs to cover the car no matter who’s driving it. Check the laws of your state if the driving time is going to be shared 30 to 40 percent of the time. You might not end up ever getting your money if there is an accident and also you haven't told your insurance business 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 the driver of no matter what vehicle they happen to be driving.

3-The cost of the car-sharing

One of probably the most difficult things is probably figuring out cost sharing amounts. Operating costs and monthly payments should be separate from one another. You can have a monthly fee added as the monthly payment split. Also take into consideration operating costs. You may just want to sit down and add all the expenses together. Divide the total by either individuals or the number of miles you expect to drive the car. Alternately, set a “per mile” rate for the car, intended to cover all the operating costs. 50 cents a mile is what the US government uses. The price will likely be around 50 cents and up to $1.

Officially sharing the costs of a car may take a bit of time and arithmetic to determine, but it could be worth it. 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.