FOR IMMEDIATE RELEASE
May 13 , 2015
MEDIA CONTACT
Jennifer White
716-898-0850 ext 109
Jen@BuffaloCarShare.org
Outdated NY State Insurance Law Puts Buffalo CarShare at Risk of Closure
BCS needs community support to find a solution
BUFFALO, NY – Buffalo CarShare’s (BCS) vehicle insurer, Philadelphia Insurance, is ending fleet coverage as of June 15, 2015. If no insurance solution is found, BCS will be forced to cease car sharing operations on that date. This beneficial community service which helps provide an increased quality of life for over 900 members will no longer exist.
If Buffalo CarShare is forced to close, the following actions are at risk:
- Thousands of current and potential Buffalo CarShare users and their families will no longer have access to convenient and affordable transportation
- 50% of members come from households earning $25,000 or less - Buffalo CarShare leads the entire US car sharing industry in providing service to low income members
- Members rely on the service for trips to the grocery store, doctors visits, and job interviews
- An estimated 7,000 reservations per year will not be taken with BCS vehicles, displacing drivers into a strong but strained public transit system or into new vehicles added on the road
- Partner institutions like Buffalo State College, Buffalo Niagara Medical Campus and 40 other community non-profits will lose a key environmental strategy into reducing parking, traffic, congestion, and carbon emissions
- Buffalo CarShare is responsible for reducing 816 tons of carbon into the environment, which would be negated when members are forced to buy their own vehicles
“For me, it has made a world of difference, allowing me to be a normal and productive member of society when my economic standing and abilities would have prevented me to be otherwise,” said Cathy Wallace, Buffalo CarShare member, “In other words, this organization has been life altering to me, it is because of Buffalo CarShare that my life has been majorly and positively improved. In the past two and half years, Buffalo CarShare has been along the journey of getting me out of homelessness, to settling into a studio apartment. It has given me the ability to get to doctors appointments with medical providers outside the metro line which has allowed me to get my health back under control. It is very hard for me to imagine what my life would be like if Buffalo CarShare wasn’t an option.”
For the last six years, Philadelphia Insurance was the first and only insurance carrier in NY State who could be convinced to provide insurance without a specific insurance product to cover car sharing. There still is no insurance product that exists in NY State for car sharing systems, and neither the State nor insurance carriers have taken the initiative to create one. A special insurance product is needed due to NY State’s No-fault laws, which inhibit the creation of innovative solutions like car sharing making this type of transportation too costly and risky for insurance companies to cover. Buffalo CarShare has exhausted every opportunity in their power to obtain insurance through another carrier, to no avail.
“This problem doesn’t exist for independent car sharing organizations in the 38 states without no-fault, in fact, the City of Los Angeles is seeking to implement a car sharing system based on the Buffalo model. The city won’t have any issues finding an insurance carrier because California is one of many states where the laws reflect a need for transportation innovation,” said Mike Galligano, Executive Director, Buffalo CarShare.
There are two final options to keep vehicles running for members:
- Buffalo CarShare can be brought under the umbrella of a larger organization that is self insured, such as a public entity or transportation company
- BCS can work with the state Department of Financial Services to create an insurance product for car sharing
Members of the community are encouraged to contact Buffalo CarShare at 716-898-0850 or info@buffalocarshare.org to offer support at this critical time. BCS can best work through these options with broad public support.
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About Buffalo CarShare
Buffalo CarShare is a non-profit, community-driven organization that advances affordable and environmentally friendly transportation. Over six years, the program’s shared vehicles have driven 1 million miles with a convenient 19-vehicle fleet that includes gas, hybrid, and full-electric vehicles (including minivans and a pickup truck) available by the hour or day. Buffalo CarShare is supported by a range of local and statewide partners, and works with institutions such as the Buffalo Niagara Medical Campus, Buffalo State, and other community-oriented organizations in order to adapt to changing transportation needs.
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