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Carshare May Lose Auto Insurance

Nonprofit company seeks change to New York law to allow out-of-state risk retention insurance.

by Staff
March 28, 2023
Carshare May Lose Auto Insurance

Ithaca Carshare seeks an alternative to meet its car insurance needs.

1 min to read



Ithaca Carshare, a nonprofit organization, is having difficulty in obtaining auto insurance and is attempting to find a solution through the state government.

The membership-based business has operated for 15 years, but a change with its current insurance provider has put its future in jeopardy.

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Ithaca Carshare Director Liz Field said the federal insurance group that currently insures the company cannot provide insurance anymore. A nonprofit business like Ithaca Carshare falls into the category of risk retention, a type of insurance banned in New York, she said.

The company’s current policy runs out in May, leaving Carshare to find an alternative. Carshare seeks a change in state law to address the problem.

Proposed Bill A5718 would allow an out-of-state risk retention group to issue insurance policies for New York nonprofits.

Ithaca Carshare wants a resolution soon so it can continue offering low-cost vehicle access to the city and its approximately 1,500 members.

Time is of essence. Field says the company received NYSERDA funding of $315,000 to add more vehicles but warns the purchase might not happen because of the insurance issue.

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“We’re not going to be able to access that. They will not fund us if we can’t get auto insurance and stay in operation. It’s very time sensitive," Field said.



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