{"data":{"id":"us-ky/krs-365.522","jurisdiction":"us-ky","citation":"KRS 365.522","heading":"Liability -- Exceptions -- Motor vehicle insurance coverage requirements --","body":"Construction.\n(1) (a) A peer -to-peer car sharing program shall assume the liability, except as\nprovided in paragraph (b)1. of this subsection, of a shared vehicle own er for\nbodily injury and property damage to third parties and basic reparation\nbenefits losses during the car sharing period in an amount stated in the car\nsharing program agreement, which amount shall not be less than:\n1. For bodily injury and property da mage to third parties, the amounts set\nforth in KRS 304.39-110; and\n2. For basic reparation benefits, the amount set forth in KRS 304.39 -\n020(2).\n(b) Notwithstanding the definition of \"car sharing termination time\" set forth in\nKRS 365.520, the assumption o f liability required under paragraph (a) of this\nsubsection:\n1. Shall not apply when a shared vehicle owner:\na. Makes an intentional or fraudulent material misrepresentation or\nomission to the peer -to-peer car sharing program before the car\nsharing period in which the accident occurs; or\nb. Acts in concert with a shared vehicle driver who fails to return the\nshared vehicle pursuant to the terms of the car sharing program\nagreement; and\n2. Shall apply to bod ily injury, property damage, and basic reparation\nbenefits losses by damaged third parties required under KRS 304.39 -\n080.\n(2) (a) 1. A peer -to-peer car sharing program shall ensure that, during each car\nsharing period, the shared vehicle owner and the shar ed vehicle driver\nare covered under a motor vehicle liability insurance policy that:\na. Provides coverage in amounts not less than the minimum amounts\nset forth in KRS 304.39-110; and\nb. Either:\ni. Recognizes that the motor vehicle insured under the policy is\nmade available and used as a shared vehicle through a peer -\nto-peer car sharing program; or\nii. Does not exclude use of the motor vehicle as a shared\nvehicle by a shared vehicle driver.\n2. For purposes of this paragraph, \"recognizes\" means acceptance an d\nrecognition of coverage.\n(b) 1. The requirements of paragraph (a) of this subsection may be satisfied by\nmotor vehicle liability insurance maintained by:\na. The shared vehicle owner;\nb. The shared vehicle driver;\nc. The peer-to-peer car sharing program; or\nd. Any combination of the persons described in this subparagraph.\n2. In the event a claim occurs in another state with minimum coverage\nlimits higher than the amounts set forth in KRS 304.39 -110 during the\ncar sharing period, the coverage maintained und er this paragraph shall\nsatisfy the difference in minimum coverage amounts, up to the\napplicable policy limits.\n(c) Except as otherwise provided in this section:\n1. The insurance described in paragraph (b) of this subsection that is\nsatisfying the insuranc e requirement of paragraph (a) of this subsection\nshall be primary during each car sharing period;\n2. In the event a bodily injury or liability claim occurs and there is more\nthan one (1) motor vehicle liability insurance policy as permitted under\nparagraph (b)1.d. of this subsection, the order of priority of coverage\nshall be as follows, unless one (1) policy contains a provision\naffirmatively stating that the policy's coverage is primary and thereby is\nprimary during the car sharing period:\na. A policy maintained by the shared vehicle driver is first in priority;\nb. A policy maintained by the peer -to-peer car sharing program is\nnext in priority; and\nc. A policy maintained by the shared vehicle owner is last in priority;\nand\n3. If coverage is applicable thr ough more than one (1) motor vehicle\nliability insurance policy as permitted under paragraph (b)1.d. of this\nsubsection and more than one (1) of those policies contain a provision\naffirmatively stating that the policy's coverage is primary, the order of\npriority of coverage shall be as described in subparagraph 2.a. to c. of\nthis paragraph.\n(d) The insurer, insurers, or peer -to-peer car sharing program providing coverage\nunder paragraph (a) or (b) of this subsection shall assume primary liability for\na claim if a dispute exists as to:\n1. Who was in control of the shared vehicle at the time of the accident and\nthe peer -to-peer car sharing program does not have available, did not\nretain, or fails to provide the information required under KRS\n365.524(2); or\n2. Whether the shared vehicle was returned to the alternatively agreed\nupon location as required under KRS 365.520(1)(e)2.\n(e) If insurance maintained by a shared vehicle owner or shared vehicle driver in\naccordance with paragraph (b) of this subsection has l apsed or does not\nprovide the required coverage, insurance maintained by a peer -to-peer car\nsharing program shall provide the coverage required by paragraph (a) of this\nsubsection beginning with the first dollar of a claim and have the duty to\ndefend such claim except under circumstances set forth in subsection (1)(b)1.\nof this section.\n(3) Coverage under a motor vehicle insurance policy maintained by a peer -to-peer car\nsharing program shall not be dependent upon another motor vehicle insurer first\ndenying a claim nor shall another motor vehicle insurance policy be required to first\ndeny a claim.\n(4) Nothing in this section shall be construed to:\n(a) Limit the liability of a peer -to-peer car sharing program for any act or\nomission of the peer-to-peer car sharing program itself that results in injury to\nany person as a result of the use of a sh ared vehicle through a peer-to-peer car\nsharing program;\n(b) Limit the ability of a peer -to-peer car sharing program to, by contract, seek\nindemnification from the shared vehicle owner or the shared vehicle driver for\neconomic loss sustained by the peer -to-peer car sharing program resulting\nfrom a breach of the terms and conditions of the car sharing program\nagreement;\n(c) Invalidate or limit an exclusion contained in a motor vehicle liability\ninsurance policy, including any policy in use or approved for us e that\nexcludes coverage for motor vehicles made available for rent, sharing, or hire,\nor for any business use; or\n(d) Invalidate, limit, or restrict an insurer's ability under existing law to:\n1. Underwrite any insurance policy; or\n2. Cancel and nonrenew policies.","path":["KRS Chapter 365"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53302","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:01Z","sha256":"e46f6aeb903d83deabbb0d2cafcb958e247cbf5c61880866b5fe329deb9e168e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-365.520","next":"us-ky/krs-365.524"},"notice":"GroundRules: Original legal text. Not legal advice."}