Turo Auto Insurance: What's Covered And What's Not?

Turo is a peer-to-peer car-sharing company that allows individuals to list their personal vehicles for rent. Turo does not automatically provide insurance coverage for hosts or renters, who can choose from three protection plans or decline coverage if they have their own commercial or personal auto policies. Turo's protection plans are not mandatory, but all vehicles must have some form of insurance coverage, whether through Turo or independent policies. This has sparked a debate about whether personal car insurance policies cover Turo rentals, with some insurers stating coverage only extends to cars rented from traditional car rental agencies.

Turo protection plans for renters

Premier Plan

The Premier Plan is the most comprehensive option, providing primary coverage for renters. This plan includes:

• Physical damage coverage up to the actual cash value of the vehicle
• A minimum daily cost of $14 or 100% of the trip price
• No coverage for mechanical or interior damage

Standard Plan

The Standard Plan is a more balanced option, offering secondary coverage to complement any existing insurance the renter may have. This plan includes:

• Physical damage coverage
• A minimum daily cost of $12 or 40% of the trip price
• No coverage for mechanical or interior damage

Minimum Plan

The Minimum Plan is the most basic option, also serving as secondary coverage. This plan includes:

• Physical damage coverage
• A daily minimum of $10 or 18% of the trip price for trips over $250, and 25% for trips under $250
• No coverage for mechanical or interior damage

It's important to note that renters are not required to have a Turo protection plan if they have adequate personal car insurance that extends to their Turo rental. However, it is crucial to confirm the extent of their coverage with their insurance provider, as some may offer liability coverage but not physical damage coverage for rental vehicles.

Turo protection plans for hosts

Turo offers a range of protection plans for hosts, with varying levels of coverage and reimbursement. All trips in Canada are covered by $2,000,000 in third-party liability insurance, issued to Turo under policies from Economical Insurance Company and ICBC. This provides protection for hosts in case of a third-party claim during a trip.

Turo's protection plans for hosts offer reimbursement for physical damage and theft, with the level of protection depending on the chosen plan. The plans also include 24/7 roadside assistance. When selecting a plan, hosts can choose between Premier, Standard, or Minimum options, each with different levels of physical damage protection. Regardless of the chosen plan, hosts are covered by $2,000,000 in third-party liability insurance.

The Standard protection plan is a popular choice, offering hosts protection against damage from collision and theft, along with $2,000,000 in third-party liability coverage. This plan provides peace of mind and comprehensive coverage for hosts.

Turo's protection plans also vary in the percentage of the trip price that hosts can earn. The higher the earned percentage, the higher the deductible and the lower the reimbursement amounts. For example, with the top-tier protection plan, hosts earn 75% of the trip price and enjoy extra benefits, including up to $150,000 in physical damage coverage and a $0 deductible for physical damage. On the other hand, the higher-risk plan offers 85% of the trip price but comes with a $2,000 deductible and no replacement vehicle reimbursement during repair.

It is important to note that Turo's protection plans do not include exterior wear and tear reimbursement or loss of hosting income during repairs. Additionally, hosts are still required to carry their own insurance to comply with the law, as Turo's protection plans only cover trips booked through the platform.

Turo insurance and personal insurance

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 offers three protection plans for both hosts and renters, but neither party is required to opt for a Turo plan if they have pre-existing insurance that covers the rental or use of a Turo vehicle.

For hosts, Turo partners with Liberty Mutual to provide five tiers of coverage, with the percentage of the cost the host receives ranging from 60% to 90%. Hosts can also decline coverage, becoming a Commercial Host, and provide their own commercial rental liability insurance. It's important to note that a host's personal car insurance policy will never extend coverage for the rental use of their vehicle, and they risk being dropped by their insurance provider if they rent out their car for commercial purposes.

Renters using Turo are not required to have their own personal car insurance policy. If a renter already has insurance, they should check with their provider to see if their coverage extends to a Turo rental, as some insurers do not consider Turo a car rental company and, therefore, do not provide coverage. Additionally, credit card benefits for rental vehicles typically do not apply to Turo rentals. If a renter's insurance does extend to Turo, it's important to understand the coverages, limits, and deductibles that will apply.

In summary, while Turo provides insurance options, it is crucial for both hosts and renters to carefully review their existing insurance policies and understand their coverage options before opting in or out of Turo's protection plans.

Turo insurance and credit card benefits

When it comes to insurance and credit card benefits, Turo is a peer-to-peer car-sharing company that differs from traditional rental car agencies. It's important to understand the insurance implications when renting a car through Turo, as both hosts and guests need to have insurance. Here's a detailed overview of Turo insurance and credit card benefits:

Turo Insurance for Hosts:

Turo partners with Liberty Mutual or Travelers, a major US insurance company, to offer five levels of protection to hosts. These plans are named based on the percentage of the cost the host receives: 60, 75, 80, 85, or 90. All five protection plans include up to $750,000 in liability protection and coverage for physical damage up to the car's actual cash value or $200,000, whichever is less, minus the deductible. The 75 and 60 plans offer additional benefits, such as replacement vehicle reimbursement and protection for wear and tear. The cost of insurance for hosts is based on a percentage of the total rental amount charged.

Turo Insurance for Guests:

Turo offers three protection plans for guests: Minimum, Standard, and Premier. The Minimum plan includes the state-mandated minimum liability coverage and a deductible of up to $3,000 for damage. The Standard plan lowers the deductible to $500, while the Premier plan removes the deductible entirely. Guests are not required to purchase Turo's protection plans if they have their own insurance coverage. However, they will still receive the state-mandated minimum liability protection, as driving without it is illegal.

Credit Card Benefits:

Credit card benefits for Turo rentals can vary. While some credit cards offer rental car coverage when you pay with their card, it is unlikely that they will provide coverage for Turo rentals. This is because Turo is not considered a traditional rental car company, but a peer-to-peer car-sharing platform. American Express, for example, specifically excludes "vehicle sharing or peer-to-peer arrangements" from their rental car coverage. Similarly, Chase's insurance excludes "leases and mini-leases" and "vehicles that are not rented from a rental agency." Therefore, it is crucial to carefully review the terms and conditions of your specific credit card benefits to determine if Turo rentals are covered.

In summary, when using Turo, it is essential to understand the insurance requirements and options available. While Turo offers protection plans for both hosts and guests, individuals should also carefully review their own insurance policies and credit card benefits to ensure they have adequate coverage. The decision to purchase additional insurance is a personal one and depends on an individual's risk tolerance and existing coverage.

Turo insurance and personal car insurance

Turo is a peer-to-peer car-sharing company that allows individuals to list their personal vehicles for rent. It is important to note that Turo does not automatically provide insurance coverage for either hosts or renters. However, it offers protection plans that are optional for both parties.

If you are a host or a renter on Turo, you have the option to decline Turo's protection plans if you have your own applicable commercial or personal auto policies. Turo's liability insurance will supplement your existing coverage as a secondary source if you opt into a Turo protection plan and are already insured.

As a host, you can choose from five tiers of coverage, ranging from 60 to 90 plans, with varying percentages of trip cost earnings and different levels of protection. If you decline Turo's protection plans, you will be designated as a Commercial Host and will need to provide your own commercial rental liability insurance.

As a renter, you can choose from three tiers of coverage through Turo's protection plans. If your current policy meets the state-mandated minimum coverage and extends to Turo rentals, you may opt out of Turo's protection plans.

It is important to carefully review the terms and conditions of Turo's protection plans and understand the limitations and exclusions of your personal car insurance policy before making a decision.

Regarding personal car insurance, it is a common misconception that car insurance follows the driver. In most cases, your personal insurance policy follows the vehicle. While your personal insurance may cover rental cars, it is important to verify with your insurance provider if this extends to Turo rentals specifically. Some insurance companies, such as State Farm, have stated that personal auto policies do not apply when driving a Turo vehicle due to the way car policies are written.

Additionally, credit card benefits for rental vehicles may not apply to Turo rentals, as they typically serve as secondary sources of rental car insurance. Therefore, it is crucial to check with your credit card provider before assuming coverage.

Frequently asked questions