Alyssa Lane
Turo is a peer-to-peer car-sharing service that allows users to rent out their vehicles or rent from other users. When it comes to insurance, Turo offers protection plans through Travelers for an additional fee. These plans provide liability insurance and physical damage reimbursement, but it's important to note that Turo is not an insurance company itself. As a host or renter on Turo, having sufficient auto insurance is crucial. If you're a host, you need to inform your insurance company about renting out your car, as your personal policy may not cover it. As a renter, you should check with your insurance carrier if your policy covers rental cars. Understanding the protection plans offered by Turo and ensuring you have the right insurance coverage is essential to safeguarding yourself financially in the event of any accidents or damage during your Turo rental.
| Characteristics | Values |
|---|---|
| Turo's insurance policy | Third-party liability insurance provided under a policy issued to Turo by Travelers Excess and Surplus Lines Company |
| Host's insurance policy | Hosts choose a protection plan that includes liability insurance, physical damage reimbursement, and basic roadside assistance |
| Guest's insurance policy | Guests are required to have car insurance and can purchase a Turo protection plan that determines how much they are responsible for paying in case of damage |
| Claim process | If a guest is in an accident in a Turo rental, a claim is first filed through their personal insurance coverage. If it is denied, the claim goes through their personal protection plan with Turo |
| Deductible | Guests are responsible for their deductible if they make a claim through their insurance company |
| Supplemental protection plans | Turo offers supplemental protection plans to both renters and hosts to cover damage to the vehicle, regardless of who is at fault |
| Host's reimbursement | Hosts will be responsible for the deductible amount, and Turo will reimburse the remaining repair costs for eligible physical damage |
| Host's take-home amount | The higher the host's coverage and the lower their deductible, the lower their take-home amount from each trip |
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What You'll Learn
Turo's liability insurance
When it comes to liability insurance, Turo offers protection plans for both renters and hosts to ensure that any damage to a vehicle is covered, regardless of who is at fault. These protection plans are provided under a policy issued to Turo by the Travelers Excess and Surplus Lines Company.
All Turo hosts can choose from five protection plans, each of which includes liability insurance, physical damage reimbursement, and basic roadside assistance. The plans offer reimbursement for car repairs up to the actual cash value of the vehicle in the event of damage during a trip. The standard liability coverage provided by Turo is up to $750,000 for all host protection plans, except in certain states and airports that mandate additional coverage.
It is important to note that Turo's liability insurance does not cover damage to a host's vehicle. Instead, it provides third-party liability coverage, which means that if a Turo rental is involved in an accident, the claim will first be filed through the renter's personal insurance coverage. If the claim is denied because the insurance company does not cover car-sharing, the claim will then be processed through the renter's Turo protection plan.
For hosts, it is recommended to inform their insurance company if they plan to rent out their car on Turo, as their standard car insurance policy may not cover their vehicle when it is being used for commercial purposes. Hosts can purchase host coverage through Turo, which will provide them with the peace of mind that their vehicle is protected from any damages incurred during the rental period.
In summary, Turo's liability insurance provides valuable protection for both renters and hosts, offering peace of mind and financial security in the event of accidents or vehicle damage during trips.
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Personal insurance coverage
Turo does not automatically provide insurance coverage for either hosts or renters. However, both parties can choose from multiple protection plans or decline coverage if they have their own commercial or personal auto policies. If you opt for a Turo protection plan and already have insurance, Turo's liability insurance will supplement your existing coverage as a secondary source.
As a Turo renter, it is important to check with your insurance company to see if your personal car insurance coverage extends to a rental car. Many insurers cover most rental cars, but may not cover Turo rentals specifically due to the peer-to-peer system. It is important to ask exactly what coverages extend to a Turo vehicle, as insurance providers may offer liability but not physical coverage for a rental car.
If you are a Turo host, your personal car insurance will not cover your car while it is being rented out, and you will need a commercial car insurance policy or supplemental coverage through Turo. Turo offers three levels of car insurance coverage, or protection plans, for renters to choose from. These plans include varying deductible amounts and liability limits, with higher levels costing more but providing extra benefits.
Turo's protection plans do not cover interior damage or mechanical damage, meaning guests will pay out of pocket for related damage excluding normal wear and tear. If you decline Turo's protection plans, you will only receive the minimum amount of third-party liability insurance coverage required by the state where the car is registered, and you will be responsible for all costs related to physical, mechanical, and interior damage, as well as administrative claims fees and appraisal costs.
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Protection plans for renters
Turo offers supplemental protection plans to both renters and hosts to ensure that damage to the vehicle is covered, regardless of who is at fault.
If you are a renter and you get into an accident in a Turo rental, a claim will first be filed through your personal insurance coverage. If it is denied because your insurance company does not cover car-sharing, the claim will then go through your personal protection plan with Turo.
Turo's protection plans for renters include liability insurance, physical damage reimbursement, and basic roadside assistance. Liability insurance covers up to $750,000 for all host protection plans, except in some states and at some airports that require additional coverage. Physical damage reimbursement is not insurance but a contractual allocation of risk between you and Turo. If your vehicle is damaged during a trip, you must notify Turo and provide pre- and post-trip photos within 24 hours of the end of the trip. Turo will then reimburse the repair costs for eligible physical damage, minus the deductible amount.
It is important to note that protection plans do not cover reimbursement for wear and tear, reimbursement for loss of hosting income, or a replacement vehicle if a vehicle is being repaired. Additionally, the premier Turo coverage does not limit your responsibility for mechanical issues or interior damage to your rental car, so you could still be charged for repairs if you damage the interior or mechanical components.
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Protection plans for hosts
Turo offers supplemental protection plans to both renters and hosts to ensure that damage to the vehicle is covered, regardless of who is at fault.
Turo hosts can choose from five protection plans that are right for them. Every host plan comes with up to $750,000 in third-party liability insurance from Travelers. Each plan offers reimbursement for car repairs up to the car's actual cash value in the event of damage during a trip.
Hosts will be responsible for the deductible amount, and Turo will reimburse the rest of the repair costs for eligible physical damage. However, protection plans do not cover reimbursement for wear and tear, reimbursement for loss of hosting income, or a replacement vehicle if a vehicle is being repaired.
If a host has their own car insurance, Turo will work with the insurance company to pay for any associated costs. If a host purchased a Turo protection plan, the company will determine how much the host is responsible for paying based on their plan details.
The Turo protection plan purchased by the vehicle owner and the coverage purchased by the renter are separate policies and do not affect one another. When renting a Turo car, the renter agrees to take financial responsibility for any damage during the rental period, but the amount the vehicle owner receives is based on the insurance plan they chose, not the coverage purchased by the renter.
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Physical damage reimbursement
Turo offers supplemental protection plans to both renters and hosts to make sure damage to the vehicle is covered, no matter who is at fault. Turo is not an insurance company, and contractual reimbursement for physical damage to your vehicle is not insurance. Physical damage reimbursement is a contractual allocation of risk between you and Turo.
If your vehicle gets damaged during a trip, notify Turo, providing pre- and post-trip photos within 24 hours of the end of the trip. It’s important to take photos before and after each trip to document the vehicle’s condition. A Turo associate will reach out within 1–3 days and guide you through the rest of the process.
Hosts will be responsible for the deductible amount, then Turo will reimburse the rest of the repair costs for eligible physical damage. Turo protection plans do not cover reimbursement for wear and tear, reimbursement for loss of hosting income, or a replacement vehicle if a vehicle is being repaired.
If you’re in an accident in a Turo rental, a claim will be filed through your personal insurance coverage first. If it is denied because your insurance company doesn’t cover car sharing, the claim will then go through your personal protection plan with Turo. If you purchased a Turo protection plan, the company will determine how much you are responsible for paying based on your plan details.
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Frequently asked questions
Yes, no matter how you're using Turo, whether as a host or a guest, you're required to have car insurance. Turo offers supplemental protection plans to both renters and hosts to make sure damage to the vehicle is covered, no matter who is at fault.
If you're in an accident in a Turo rental, a claim will first be filed through your personal insurance coverage. If it is denied because your insurance company doesn't cover car sharing, the claim will then go through your personal protection plan with Turo.
Turo offers five protection plans for hosts, each of which offers reimbursement for car repairs up to the car's actual cash value in case of damage during a trip. Every protection plan includes liability insurance, physical damage reimbursement, and access to basic roadside assistance.
