Auto Insurance And Turo: Understanding The Coverage Gap

Whether your auto insurance covers Turo damage depends on your insurance company and the type of insurance you have. Turo is a car-sharing company that allows you to rent out your personal vehicle or rent someone else's. While Turo offers supplemental protection plans for renters and hosts, your personal car insurance policy may not cover you when renting or lending your car through Turo.

If you are a Turo host, your personal car insurance policy will not cover your car while it is being rented out. You will need a commercial car insurance policy or supplemental coverage through Turo to protect yourself financially.

If you are a Turo renter, your personal car insurance may cover you while driving a Turo rental, but it is important to check with your insurance company to confirm. Additionally, credit card rental insurance benefits typically do not apply to peer-to-peer car rental companies like Turo.

In summary, it is important to understand the terms of your auto insurance policy and any applicable state laws before renting or lending a car through Turo to ensure you have the necessary coverage in place.

Turo's insurance for guests

Turo is a peer-to-peer car-sharing service that allows you to rent another person's vehicle. If you're using Turo, you'll need to have the right car insurance. Whether you're a host (the person lending out your car) or a guest (the person renting the vehicle), you're required to have car insurance.

Turo offers three different levels of protection for renters in the US: premium, standard, and minimum. Higher levels cost more but provide extra benefits. Here's a breakdown of the three levels:

Premium

• Cost: 65% of the trip price. Minimum $14/day.
• Third-party liability coverage: Up to $750,000.
• Restrictions: Must be 21 or older to buy. Not available for all vehicles or trips.

Standard

• Cost: 40% of the trip price. Minimum $12/day.
• Third-party liability coverage: Minimum amount required by the state.

Minimum

• Cost: 18% of the trip price if it costs less than $250, otherwise 25% of the trip. Minimum $10/day.
• Third-party liability coverage: Minimum amount required by the state.

Regardless of the guest protection plan you choose, you won't be responsible for physical damage beyond the deductible. However, you will be responsible for any mechanical or interior damage to the car. You'll also need to use any personal auto insurance coverage first before Turo's coverage applies.

You can also opt to decline protection, which means you won't be paying for insurance. However, you'll only receive the minimum amount of third-party liability insurance coverage required by the state where the car is registered, and you'll be responsible for all costs related to physical, mechanical, and interior damage, as well as administrative claims fees and appraisal costs.

Turo's insurance for hosts

Turo is a peer-to-peer car-sharing service that allows users to rent another person's vehicle. If you're a host on Turo, you'll want to make sure your car is protected from any damages. Turo offers five different protection plans for peer-to-peer hosts, with varying levels of benefits. Here's what you need to know about Turo's insurance for hosts:

Turo's Protection Plans for Hosts:

• Top-tier protection plan: This plan offers the most comprehensive coverage, including up to $750,000 in third-party liability insurance, 100% coverage of eligible damage costs, exterior wear and tear reimbursement, and loss of hosting income during repair or $50/day replacement vehicle reimbursement. With this plan, hosts earn 60% of the trip price.
• Solid protection plan with a minimal deductible: This plan includes up to $750,000 in third-party liability insurance, 100% coverage of eligible damage costs above the deductible, and $30/day replacement vehicle reimbursement during repair. It does not include exterior wear and tear reimbursement or loss of hosting income during repair. Hosts earn 75% of the trip price with this plan.
• Moderate protection plan with a higher deductible: This plan offers up to $750,000 in third-party liability insurance, 100% coverage of eligible damage costs above the deductible, but no replacement vehicle reimbursement during repair, exterior wear and tear reimbursement, or loss of hosting income during repair. Hosts earn 80% of the trip price.
• Higher-risk, higher-reward plan with a larger deductible: This plan includes up to $750,000 in third-party liability insurance, 100% coverage of eligible damage costs above the deductible, but no replacement vehicle reimbursement during repair, exterior wear and tear reimbursement, or loss of hosting income during repair. Hosts earn 85% of the trip price.
• Highest-risk, highest-reward plan: This plan offers the highest earnings for hosts at 90% of the trip price. It includes up to $750,000 in third-party liability insurance and 100% coverage of eligible damage costs above the deductible. However, it does not include replacement vehicle reimbursement during repair, exterior wear and tear reimbursement, or loss of hosting income during repair.

Important Things to Note:

• Turo is not an insurance company: It's important to note that Turo is not an insurance company, and the physical damage reimbursement offered is not insurance. Turo provides contractual reimbursement for physical damage to your vehicle, subject to terms and exclusions.
• Deductibles and reimbursement: With each plan, hosts are responsible for the deductible amount, which varies by plan. After the deductible, Turo will reimburse the rest of the eligible repairs up to the actual cash value of the car or a certain limit.
• Personal car insurance: Hosts are still required to have their own personal car insurance for their vehicle. Your personal insurance may have an exclusion that voids coverage when you share your car on a peer-to-peer car-sharing platform.
• Protection plans apply to Turo trips only: The vehicle protection plans offered by Turo only apply to trips booked on Turo. If your vehicle is damaged when it's not on a Turo trip, you would need to file a claim with your personal car insurance provider.
• Changing your protection plan: You can change your protection plan at any time, but the change will only apply to future trips, not currently booked trips.

Turo's insurance score

An Auto Insurance Score (AIS) is a three-digit number that indicates the likelihood of a driver filing an insurance claim. Turo uses AIS when evaluating new guests in the US and Canada. The AIS is provided to Turo by TransUnion, a credit reporting agency. TransUnion uses elements of an individual's credit report to determine their AIS, which is not the same as a credit score.

Turo offers three different levels of protection for renters in the US: premium, standard, and minimum. The premium plan costs 65% of the trip price (with a minimum of $14/day) and offers up to $750,000 in third-party liability coverage. The standard plan costs 40% of the trip price (with a minimum of $12/day) and offers the minimum amount of third-party liability coverage required by the state. The minimum plan costs 18% of the trip price if it costs less than $250, otherwise, 25% of the trip price (with a minimum of $10/day), and also offers the minimum amount of third-party liability coverage required by the state.

Renters can also opt to decline protection, meaning they won't pay for insurance, but they will only receive the minimum amount of third-party liability insurance coverage required by the state, and they will be responsible for all costs related to physical, mechanical, and interior damage, as well as administrative claims fees and appraisal costs.

Turo offers five different protection plans for peer-to-peer hosts, with varying levels of benefits. The more expensive the plan, the more benefits the host receives but the lower their earnings. All plans include $750,000 of third-party liability insurance, which is secondary to any personal auto insurance coverage the host may have. Turo will also pay for eligible damage costs to the host's vehicle up to the actual cash value of the car or $200,000, minus the deductible.

The five plans for peer-to-peer hosts are as follows:

• 10% of trip cost (host keeps 90%)
• 15% of trip cost (host keeps 85%)
• 20% of trip cost (host keeps 80%)
• 25% of trip cost (host keeps 75%) with rental reimbursement coverage of up to $30/day for a maximum of 10 days
• 40% of trip cost (host keeps 60%) with rental reimbursement coverage of up to $50/day for a maximum of 10 days, or loss of hosting income while the vehicle is repaired, as well as exterior wear-and-tear reimbursement

Turo's insurance for commercial hosts

Turo does not categorise its hosts as regular or commercial. However, commercial hosts are independent car rental companies that list their vehicles on the Turo platform. Unlike typical Turo hosts, who are private individuals sharing personal vehicles, commercial hosts are professional businesses that provide their own commercial rental insurance to renters, bypassing Turo’s coverage. Commercial hosts gain higher earnings and more control by managing larger fleets and assuming more risks with their insurance.

Commercial Hosts are required to have their own personal insurance to list their cars on the platform. They must also choose one of the platform’s host protection plans, which include up to $750,000 in third-party liability insurance from Travelers (Turo’s insurance partner). The level of protection a commercial host receives from Turo depends on the protection plan they select for their listings. The higher the plan, the less protection a host receives from Turo.

Commercial hosts can also opt for Period X™ Rental Fleet Owner Insurance, which is on-demand insurance coverage for vehicles outside rentals. This type of insurance includes GPS tracking and engine stop capabilities, as well as online access to make vehicle and driver changes to the policy 24/7.

It is important to note that commercial hosts who decline Turo’s protection plans and use their own commercial rental insurance will need to provide their own commercial rental liability insurance to any guests that rent their vehicles.

Turo's insurance for peer-to-peer hosts

Turo is a peer-to-peer car-sharing platform that allows car owners to rent their personal vehicles to others for short-term use. It has become a popular alternative to traditional car rental companies. One of the most important aspects of renting a car on Turo is understanding the platform's insurance policy.

Turo offers varying levels of insurance coverage for hosts, including basic, standard, and premium plans. Each level of coverage has different deductibles and limits, and hosts can choose the level of coverage they want to offer to renters. Basic coverage is included in every Turo rental and provides liability coverage up to the minimum state requirements. This means that if you get into an accident while driving a Turo rental, Turo's insurance will cover damage or injury you cause to others, but not damage to the rental car itself. Standard coverage offers higher liability limits and also includes protection for the rental car itself. Premium coverage provides the highest level of protection and includes additional benefits such as roadside assistance and loss of use coverage.

According to Turo, all host protection plans in the United States come standard with up to $750,000 in third-party liability insurance issued to Turo under a policy from Travelers, as well as varying levels of contractual reimbursement for physical damage and theft. There are five plans available, with the percentage of the trip price earned by the host ranging from 60% to 90%. The higher the percentage of the trip price earned, the higher the deductible and the lower the reimbursement.

It is important to note that Turo's insurance policy does not cover all types of damage or loss. For example, it may not cover damage caused by off-roading, racing, or other prohibited uses. Additionally, Turo's insurance may not cover personal items lost or stolen from the rental car.

Hosts should carefully review the insurance policy and choose the level of coverage that suits their individual situation. With the right insurance coverage in place, renting a car on Turo can be a safe and convenient alternative to traditional car rental companies.

Frequently asked questions