Some tips for creating your own car sharing group

Car sharing is one of probably the most popular new schemes to help urbanites cut down on their driving. For various reasons, people choose to be in car sharing groups. Sadly car sharing isn't available in all cities. A good choice may be making your own car sharing but keep a few things in mind.

Article Source: 3 tips for creating your own car-sharing group By Personal Money Store

1- Who’ll be the owner of the vehicle?

The first thing that needs to be decided is who will ultimately be responsible for the automobile. Unless you start some kind of company out of it, someone needs to be in charge. At least a basic contract should be drawn up and signed by all individuals sharing the automobile.

2 – Insurance

As a part of the car-sharing group, the head person should make certain that the insurance will cover the car, no matter who is driving it. If the car will be shared more than 30 to 40 percent of the driving time, you will need to check with the laws of your state. You may 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 and not necessarily the car.

3 – Costs of the car-sharing

Figuring out the costs of car-sharing is one of the most difficult things for a car-sharing group. Monthly payments will be separate from the operating costs. You are able to have a monthly fee added as the monthly payment split. The operating costs of the vehicle are the other consideration. You can 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. The U.S. federal government sets the per-mile cost of vehicle use at 50 cents per mile. The price will probably be someplace between 50 cents and $1 per mile.

Officially sharing the costs of a car may take a bit of time and arithmetic to determine, but it can 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 cut back your cost and reduce your environmental impact.