Auto Insurance: Turo Covered?

Turo is a peer-to-peer car-sharing company that allows individuals to list their personal vehicles for rent. When it comes to insurance, Turo does not automatically provide coverage for hosts or renters. This means that individuals renting out their cars on Turo will not be covered by their personal car insurance policies, as these typically do not extend to commercial use. Similarly, renters cannot assume that their personal car insurance or credit card benefits will cover a Turo rental. While some insurance companies may cover rentals through Turo, others explicitly exclude vehicle-sharing platforms from their policies. Therefore, it is essential for both hosts and renters to carefully review their insurance policies and, if necessary, purchase supplemental coverage through Turo or another provider to ensure they are adequately protected.

Turo protection plans for renters

Turo offers three tiers of protection plans for renters:

• 18% of the trip price for trips over $250 and 25% for trips under $250. Minimum $10/day — This plan includes physical damage coverage for up to the actual cash value of the vehicle, but no coverage for mechanical or interior damage.
• 40% of the trip price. Minimum $12/day — This plan also includes physical damage coverage but no coverage for mechanical or interior damage.
• 100% of the trip price. Minimum $14/day — This plan acts as primary coverage, while the other two plans are considered secondary coverage.

It's important to note that these protection plans are not available if you rent from a Commercial Host, as they are expected to carry their own commercial insurance policy.

Additionally, if you already have car insurance that covers your Turo rental, Turo's liability insurance can supplement your existing coverage as a secondary source.

Turo insurance for hosts

Turo provides five levels of insurance coverage to hosts, who are the people that own cars and allow others to rent them through the Turo platform. All five levels of Turo insurance coverage include $750,000 of liability protection, which covers you in case you are found liable in a crash. This coverage is essential, even though you won't be driving the car. For example, it could apply if improper maintenance leads to a crash, in which case you would likely be held legally responsible.

The plans also all include coverage for physical damage to the car—up to $125,000 after a deductible that adjusts with the level of plan selected. The 70 and 60 plans also include a few other extras. Turo will pay you up to $30 or $50 per day for a replacement vehicle while your car is being repaired (up to 10 days). The 60 plan also includes protection for wear and tear to your car, as well as reimbursement for loss of income while the car is being repaired.

The cost of each level of insurance is based on a percentage of the total amount you charge to rent your vehicle. The number in the name of each plan represents the percentage of the price of each trip that the host will keep with that coverage level. The remaining percentage is the fee charged by Turo. Note that the fee charged by Turo is the total amount you have to give to Turo for renting on its platform—it also covers the cost of listing your car.

You will still need your own personal car insurance for your vehicle. You are required by law to register and insure your vehicle when it’s not being shared on Turo. Note that your personal insurance likely has an exclusion that voids coverage when you share your car in a peer-to-peer car-sharing marketplace. Similarly, the vehicle protection plans offered on Turo only apply to trips booked on Turo. If your vehicle is damaged when it’s not on a trip with Turo, you would need to file a claim with your own personal car insurance provider.

If you are renting your car or fleet on Turo, you can also get Period X™ Rental Fleet Owner Insurance. This is on-demand insurance coverage for vehicles outside rentals. This insurance policy provides more than the minimum state limits in nearly 50 states. Period X™ is a comprehensive insurance product to cover fleets that are being rented out on Peer-to-Peer (P2P) rental platforms.

Turo insurance vs personal insurance

Turo is a peer-to-peer car-sharing company, allowing drivers to search for and book car rentals in the same way they would a room or hotel. Turo does not automatically provide insurance coverage for hosts or renters. However, it does offer protection plans for both.

Turo Insurance for Hosts

Turo offers five tiers of coverage to hosts, named after the percentage of the cost the host receives: 60, 75, 80, 85, or 90 plans. All five levels include $750,000 of liability protection and coverage for physical damage to the car up to $125,000 after a deductible. The 70 and 60 plans include a few other extras, such as reimbursement for a replacement vehicle while the host's car is being repaired, and protection for wear and tear.

The cost of each level of insurance is based on a percentage of the total amount charged to rent the vehicle. The number in the plan's name represents the percentage of the price of each trip that the host will keep with that coverage level.

Turo Insurance for Guests

Turo offers three packages of insurance coverage for drivers: Minimum, Standard, and Premier. The Minimum package includes the state minimum for liability coverage and a $3,000 deductible if the car is damaged or stolen. The Standard package lowers the deductible to $500, and the Premier package removes the deductible for damage and raises the liability protection to $1 million.

The cost of each level of insurance is based on the cost of the car rented. Premium protection doubles the cost of the rental, Standard adds 40%, and Minimum adds 15-25%.

Personal Insurance for Hosts

Standard car insurance policies for personal use will probably not cover a host's vehicle while it is being rented on Turo. These policies are designed to cover a private driver, not a car driven by a new stranger every weekend. However, a host's personal insurance policy may supplement their Turo coverage as a secondary source.

Personal Insurance for Guests

A guest may not need to purchase Turo insurance if they already have at least the state-mandated minimum amounts of coverage, and if their current policy extends to Turo rentals. It is important to check with the insurance company, as many insurers may not cover Turo rentals specifically.

Turo insurance for hosts and guests is not mandatory, but all vehicles must carry some sort of insurance coverage. Hosts and guests can opt for Turo protection plans or independent policies. Guests can rely on their personal car insurance, provided their coverage extends to Turo rentals.

Turo insurance vs credit card benefits

Turo is a peer-to-peer car-sharing company that allows individuals to rent out their personal vehicles to others. When it comes to insurance, Turo offers a few options. Guests can choose from three tiers of coverage through Turo's protection plans, or they can rely on their personal car insurance if their policy extends to Turo rentals. Hosts can opt for commercial rental liability insurance or choose from five tiers of coverage provided by Turo in partnership with Liberty Mutual.

On the other hand, credit cards often offer rental car coverage as a benefit. However, this typically applies to rentals from traditional car rental agencies, and it may not cover peer-to-peer car-sharing platforms like Turo. It's important to carefully review the terms and conditions of your credit card's coverage to determine if Turo rentals are included.

In terms of cost, Turo's protection plans can be expensive, with the cheapest option starting at around $10 per day. Credit card rental coverage, on the other hand, is usually included as a benefit of the card, so there is no additional cost.

Regarding coverage, Turo's protection plans offer different tiers of coverage, including liability and physical damage. The specific details of the coverage may vary depending on the plan chosen. Credit card rental coverage typically includes some level of protection for physical damage or theft, but it may not include liability coverage. It's important to note that credit card coverage is often secondary, meaning you would need to file a claim with your personal insurance first before the credit card coverage kicks in.

When deciding between Turo insurance and credit card benefits, it's essential to consider the scope of coverage, the cost, and the ease of making a claim. Turo insurance may be more comprehensive and specifically designed for peer-to-peer car-sharing, but it comes at an additional cost. Credit card benefits may offer some coverage, but it may not be sufficient for all situations, and the claims process may be more complicated. Ultimately, it's important to carefully review the details of both options before making a decision.

Turo insurance for commercial hosts

Turo provides five levels of insurance coverage to hosts, who are the people that own cars and allow others to rent them through the Turo platform. These levels of insurance are all provided through Liberty Mutual, a major U.S. insurance company.

All five levels of Turo insurance coverage include $750,000 of liability protection, which covers you in case you are found liable in a crash. This coverage is essential, even though you won't be driving the car. For example, it could apply if improper maintenance leads to a crash, in which case you would likely be held legally responsible.

The plans also all include coverage for physical damage to the car—up to $125,000 after a deductible that adjusts with the level of plan selected. The 70 and 60 plans also include a few other extras. Turo will pay you up to $30 or $50 per day for a replacement vehicle while your car is being repaired (up to 10 days). The 60 plan also includes protection for wear and tear to your car, as well as reimbursement for loss of income while the car is being repaired.

The cost of each level of insurance is based on a percentage of the total amount you charge to rent your vehicle. The number in the name of each plan represents the percentage of the price of each trip that the host will keep with that coverage level. The remaining percentage is the fee charged by Turo.

Turo does provide the option for you to opt out of its insurance program entirely and instead buy your own commercial car insurance policy. People who own cars exclusively for renting on Turo, especially if they have multiple vehicles, might find that this is the right option for them. If you select this option, Turo will only keep 7.5% of the amount you charge guests to rent your car. However, you won't receive any help from Turo if your car is damaged or stolen, so it's important that you only insure your car this way if you understand what's required of you.

For example, you'll be responsible for helping your guest with roadside assistance if their car breaks down, which Turo takes care of when you use its insurance for hosts. You'll also need to submit proof of your commercial insurance to Turo to skip its insurance policy.

Frequently asked questions