Some tips for creating your own car sharing group

To help cut down on driving, car sharing has been very popular. The reasons individuals choose to participate in car-sharing are varied – anything from cost-savings to reduced environmental impact. Sadly car sharing isn't accessible in all cities. Starting your own car-sharing program can be a legitimate alternative – but there are certainly a couple of things to keep in mind.

Source for this article: Three tips for creating your own car-sharing group

1- Who's going to own the automobile?

The first thing that needs to be decided is who will ultimately be responsible for the automobile. Unless you start a business or LLC that will own the car, someone will have to be ultimately responsible for the money, maintenance and management of the automobile. There should be a basic contract signed by all riders.

2 – Insurance

The insurance needs to cover the car no matter who is driving it. If the driving time is shared 30 to 40 percent of the time, check laws as part of your state to know what to do. If you don't share with your insurance business that the car is regularly used by others, that could end up not getting you your money. 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

One of one of the most difficult things is probably figuring out cost sharing amounts. Monthly payments can be separate from the operating costs. You are able to have a monthly fee added as the monthly payment split. Operating costs need to be taken into consideration as well. You are able to add all the fuel, insurance, and maintenance fees 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. To cover all operating costs, set a "per mile" rate for the car. 50 cents a mile is what the US government uses. 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 kind of car-sharing network makes it to your city, it could be a great way to reduce your cost and reduce your environmental impact.