Does Your Progressive Auto Insurance Cover Turo Rentals?

Turo is a peer-to-peer car-sharing company that allows individuals to list their personal vehicles for others to rent. Turo does not automatically provide insurance coverage for hosts and renters, who must instead choose from three protection plans or decline coverage if they have their own commercial or personal policies.

Progressive auto insurance does cover rental cars, but only to the same limits as your personal auto insurance policy. This means that if you have an old or inexpensive car and want to rent a newer or more expensive model, you may be underinsured.

Some Progressive policyholders have reported being covered by their personal insurance when renting through Turo, but others have been told that Turo is not considered a car rental company and is therefore not covered.

If you plan to rent a car through Turo, it is important to check with your insurance company to see if you are covered and consider purchasing supplemental insurance if necessary.

Turo insurance for hosts

Turo offers five host protection plans, each of which includes up to $750,000 in third-party liability insurance, provided under a policy issued to Turo by Travelers Excess and Surplus Lines Company. The plans also offer varying levels of contractual reimbursement for physical damage and theft, with the level of protection depending on the chosen plan.

Plan 1: Splurge on top-tier protection with the full suite of extra benefits

• Earnings: 60% of the trip price
• Third-party liability insurance: Up to $750,000
• Damage costs: Turo pays 100% of eligible damage costs
• Wear and tear reimbursement: Includes exterior wear and tear reimbursement for eligible vehicles
• Loss of hosting income: Includes loss of hosting income during repair or $50/day replacement vehicle reimbursement (10-day max)

Plan 2: Spring for solid coverage with a minimal deductible

• Earnings: 75% of the trip price
• Third-party liability insurance: Up to $750,000
• Damage costs: Turo pays 100% of eligible damage costs above the deductible
• Replacement vehicle reimbursement: $30/day during repair (10-day max)
• Wear and tear reimbursement: Doesn't include exterior wear and tear reimbursement
• Loss of hosting income: Doesn't include loss of hosting income

Plan 3: Pocket more with a moderate deductible

• Earnings: 80% of the trip price
• Third-party liability insurance: Up to $750,000
• Damage costs: Turo pays 100% of eligible damage costs above the deductible
• Replacement vehicle reimbursement: No replacement vehicle reimbursement during repair
• Wear and tear reimbursement: Doesn't include exterior wear and tear reimbursement
• Loss of hosting income: Doesn't include loss of hosting income

Plan 4: Earn big by taking on a larger deductible

• Earnings: 85% of the trip price
• Third-party liability insurance: Up to $750,000
• Damage costs: Turo pays 100% of eligible damage costs above the deductible
• Replacement vehicle reimbursement: No replacement vehicle reimbursement during repair
• Wear and tear reimbursement: Doesn't include exterior wear and tear reimbursement
• Loss of hosting income: Doesn't include loss of hosting income

Plan 5: Cash in on the highest risk, highest reward plan

• Earnings: 90% of the trip price
• Third-party liability insurance: Up to $750,000
• Damage costs: Turo pays 100% of eligible damage costs above the deductible
• Replacement vehicle reimbursement: No replacement vehicle reimbursement during repair
• Wear and tear reimbursement: Doesn't include exterior wear and tear reimbursement
• Loss of hosting income: Doesn't include loss of hosting income

It is important to note that while Turo offers insurance, it is not an insurance company. Therefore, it is recommended that hosts have their own personal car insurance for their vehicles. Additionally, some hosts may choose to purchase additional insurance from a third-party provider, such as ABI PeriodX, which offers coverage for vehicles outside of rentals.

Turo insurance for guests

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 guests, but three protection plans are available to choose from. If you already have insurance, you can decline Turo's coverage, but it is important to check with your insurance company to see if you are covered.

If you are a guest renting a car through Turo, you may be covered by your personal car insurance or credit card, but it is essential to check with your insurance company before renting a vehicle. Many private car insurance policies cover you to drive any vehicle, but your coverage is limited to the maximums you have set for your policy. If you rent a car that is worth a lot more than your maximums, you might want to purchase additional coverage from Turo. Before renting a car from Turo, you should check with your car insurance company and your credit card company to see if you are covered and for how much. If you are in doubt about your coverage, it is important to ask directly.

Turo offers a few tiers of auto insurance coverage for guests, but you are not required to opt-in for a Turo protection plan if you have pre-existing insurance that covers the rental. The main differences between these tiers are deductible amounts and liability limits. All include physical damage but no coverage for mechanical or interior damage. The physical damage portions of the Standard and Minimum plans are meant to be used as secondary coverage to any other insurance you may already have, while the Premier plan is to be used as primary coverage.

Progressive auto insurance coverage limits

For auto insurance, there are different types of coverages, each with its own coverage limits. For example, liability coverage, which is required by almost every state, typically has limits such as $25,000 for bodily injury per person, $50,000 in total bodily injury per accident, and $25,000 for property damage per accident. These limits can vary by state, and Progressive customers often choose higher coverage limits than their state's minimum requirements.

Comprehensive coverage, which is not required by any state, protects your vehicle from events outside your control, such as theft, vandalism, or damage from weather. The coverage limit for comprehensive insurance is often the actual cash value of your car. Collision coverage, which is also not required by any state, pays for repairs or replacement of your car if it is damaged in an accident. Like comprehensive coverage, the limit for collision coverage is typically the actual cash value of your car.

Medical payments coverage, or MedPay, is required only in Maine and New Hampshire. It covers medical expenses for you or your passengers after a car accident. Coverage limits for MedPay typically start at $1,000 per person and max out at $10,000 per person.

Personal injury protection (PIP) covers medical expenses, lost wages, funeral expenses, and other related costs. PIP is required in some states but not offered or required in most. Coverage limits vary by state, with some maximums below $10,000 per person and others as high as $25,000 per person.

Uninsured/underinsured motorist coverage protects you if you are hit by a driver with insufficient or no insurance. This coverage is required in some states but not in most. Coverage limits for this type of insurance are similar to those for liability coverage.

It is important to note that Progressive auto insurance may not cover Turo rentals. Turo is a peer-to-peer car-sharing company, and some insurance companies do not consider it the same as a traditional rental car company. While some Progressive customers have reported being covered for Turo rentals, it is essential to carefully review your policy or consult with Progressive directly to determine your specific coverage limits and whether Turo rentals are included.

Turo insurance cost

Turo is a peer-to-peer car-sharing service that allows users to rent another person's vehicle. It is important to note that Turo is not an insurance company or a car rental company. However, they do offer protection plans through Travelers for an additional fee.

Turo insurance for guests:

Turo offers three different levels of protection for renters in the US: premium, standard, and minimum. 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%. The premium option is not available if the vehicle is worth more than $25,000.

• Premium: $750,000 liability coverage and 100% of the trip price.
• Standard: State minimum liability coverage and 40% of the trip price.
• Minimum: State minimum liability coverage and 15%-25% of the trip price.

Regardless of the guest protection plan chosen, guests won't be responsible for physical damage beyond the deductible. However, they will be responsible for any mechanical or interior damage to the car.

Turo insurance for hosts:

Turo offers five different protection plans for peer-to-peer hosts, with varying levels of benefits. 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 name of each plan represents the percentage of the price of each trip that the host will keep, with the remaining percentage going to Turo as a fee.

• 60 Plan: 40% of the trip cost (host keeps 60%). Includes up to $50/day rental reimbursement coverage with a 10-day maximum, or pays for the loss of hosting income while the vehicle is repaired. Also includes exterior wear-and-tear reimbursement.
• 75 Plan: 20% of the trip cost (host keeps 80%). Includes up to $30/day rental reimbursement coverage with a 10-day maximum.
• 80 Plan: 15% of the trip cost (host keeps 85%).
• 85 Plan: 10% of the trip cost (host keeps 90%).
• 90 Plan: 7.5% of the trip cost (host keeps 92.5%).

All plans include up to $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 $125,000, minus the deductible.

Off-trip insurance:

Turo also offers off-trip car insurance through the embedded insurance company Trint. This coverage is only available to hosts with at least three vehicles listed on Turo and only covers vehicles driven for business use.

Turo insurance for commercial hosts

Turo doesn't make an official distinction between regular and commercial hosts, and all hosts must follow the same platform rules. However, the term "commercial host" is used to refer to independent car rental companies that list their vehicles on Turo, using their own commercial rental insurance instead of Turo's coverage.

Commercial Hosts manage larger fleets and assume more risks with their insurance, which gives them higher earnings and more control. They are distinct from regular Turo hosts, who are typically private individuals sharing personal vehicles.

Commercial Hosts must meet the following requirements:

• Rent vehicles in their name, which means legally registering their company
• Provide proof of commercial insurance
• Provide their business Social Security Number or an alternative
• Provide pictures of their business office and car fleets
• Provide their company's name

Commercial Hosts can choose from a range of protection plans offered by Turo, which include varying levels of third-party liability insurance and vehicle protection. The five plans are:

• Earn 60% of the trip price with up to $750,000 in third-party liability insurance, 100% of eligible damage costs paid by Turo, exterior wear and tear reimbursement, and loss of hosting income during repair or $50/day replacement vehicle reimbursement.
• Earn 75% of the trip price with up to $750,000 in third-party liability insurance, 100% of eligible damage costs above the deductible paid by Turo, and $30/day replacement vehicle reimbursement during repair.
• Earn 80% of the trip price with up to $750,000 in third-party liability insurance, 100% of eligible damage costs above the deductible paid by Turo, and no replacement vehicle reimbursement during repair or exterior wear and tear reimbursement.
• Earn 85% of the trip price with up to $750,000 in third-party liability insurance, 100% of eligible damage costs above the deductible paid by Turo, and no replacement vehicle reimbursement during repair, exterior wear and tear reimbursement, or loss of hosting income during repair.
• Earn 90% of the trip price with up to $750,000 in third-party liability insurance, 100% of eligible damage costs above the deductible paid by Turo, and no replacement vehicle reimbursement during repair, exterior wear and tear reimbursement, or loss of hosting income during repair.

It is important to note that the higher the plan, the less protection a host receives from Turo, and the more of their earnings they get to keep. Hosts who choose the 80 Plan and above don't get any protection beyond Turo's eligible damage costs and must cover a portion of the damage costs themselves before Turo reimburses the difference.

In addition to Turo's protection plans, Commercial Hosts can also opt for commercial insurance from a trusted company. However, this option is more difficult and requires legally registering a company. Commercial insurance protects company-owned vehicles, not personally-owned ones, so Turo hosts who don't own companies cannot get this type of insurance.

When choosing an insurance option, it is crucial to consider the level of risk and the potential impact on earnings. For those just starting out, the 60 Plan Turo Hosting package is recommended, followed by the 75 Plan once earnings increase. Commercial insurance is only advisable when managing over ten fleets of cars.

Frequently asked questions