Some tips for creating your own car sharing group

To help cut down on driving, car sharing has been very popular. People will choose to be in a car sharing group for various reasons. Nevertheless, car sharing isn't available in each city yet. Starting your own car-sharing program could be a legitimate choice – but there are definitely a few 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 vehicle?

The first thing you need to figure out is who will be responsible for the vehicle. Unless you start a company or LLC that will own the vehicle, somebody will have to be ultimately responsible for the money, maintenance and management of the vehicle. At least a basic contract should be drawn up and signed by all individuals sharing the vehicle.

2- Getting insurance

No matter who’s driving it, the insurance needs to cover the car. If the driving time is shared 30 to 40 percent of the time, check laws inside your state to know what to do. You might not end up ever getting your money if there is an accident and 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 the driver and not necessarily the car.

3- The cost of sharing

Figuring out the costs of car-sharing is one of one of the most difficult things for a car-sharing group. Operating costs and monthly payments should be separate from one another. The monthly payment can be split as the “monthly fee” for being a part of the car-sharing group. The operating costs of the automobile are the other consideration. You might just want to sit down and add all the expenses 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 car use at 50 cents per mile. The price will likely be around 50 cents and up to $1.

Although it takes a little work, figuring out the costs of car sharing is worth it. Until ZipCar, Hertz Go, or some other car-sharing network makes it to your city, it can be a great way to cut back your cost and reduce your environmental impact.