Understanding Turo's Auto Insurance Scores: What You Need To Know

Turo is a peer-to-peer vehicle renting company that is an alternative to big-name brands like Enterprise, Avis and Hertz. An auto insurance score (AIS) is a three-digit number assigned to each individual, indicating the likelihood of them filing an insurance claim. Turo uses AIS when evaluating new guests in the US and Canada, which it obtains from TransUnion, a credit reporting agency. This has caused some controversy, as it seems to be weighed more heavily than an individual's driving record.

Turo uses TransUnion's Auto Insurance Score to determine eligibility

Turo is a peer-to-peer vehicle renting company that serves as an alternative to traditional car rental companies. It allows car owners, or "hosts", to rent out their vehicles to "guests", who are often travellers or locals in need of transportation.

To ensure the safety and affordability of its platform, Turo evaluates the eligibility of prospective guests using an Auto Insurance Score (AIS). This three-digit number indicates the likelihood of a driver filing an insurance claim. The AIS is provided to Turo by TransUnion, a credit reporting agency.

TransUnion's AIS is calculated using elements of an individual's credit report, which is separate from their credit score. According to TransUnion, credit history has a significant impact on auto insurance scores, and studies have shown that drivers with lower credit scores are more likely to file insurance claims. This information is used by companies like Turo to assess the likelihood of a driver filing a claim.

Turo's use of the AIS as an eligibility criterion has been a source of confusion and frustration for some prospective guests, particularly those with clean driving records but lower credit scores. While Turo considers AIS in its evaluation process, it is not the sole factor, and other elements of a guest's profile may also influence their eligibility.

The Auto Insurance Score is a three-digit number reflecting the likelihood of a driver filing an insurance claim

The Auto Insurance Score (AIS) is a three-digit number that reflects the likelihood of a driver filing an insurance claim. This score is used by Turo, a peer-to-peer vehicle renting company, to evaluate new guests in the US and Canada. While the AIS may seem like a mysterious metric, it is calculated based on elements of an individual's credit report from credit reporting agencies such as TransUnion. This means that factors unrelated to driving, such as credit history and credit score, can impact one's AIS.

The AIS has been a source of controversy for Turo users, with some questioning why a credit checking company is determining driving history risks. This is especially confusing for those with a good driving record but a lower AIS due to factors outside of their control. The AIS also raises concerns about privacy and consent, as individuals may not have provided consent for a credit check.

Despite the backlash, Turo justifies its use of the AIS by stating that it helps keep their platform safe and affordable for everyone. They argue that the AIS is a tool to assess insurance risk and that studies have shown a correlation between lower credit scores and a higher likelihood of insurance claims. However, critics argue that this correlation does not equal causation, and there may be other factors at play.

The AIS has real-world implications for Turo users, as a low score can result in being declined for car rentals, even with a good driving record. Additionally, the process of disputing one's AIS can be time-consuming, requiring individuals to first dispute their score with the credit reporting agency before providing the updated information to Turo.

In conclusion, the AIS is a complex and sometimes controversial topic in the world of auto insurance and peer-to-peer vehicle rental platforms. While it aims to assess insurance risk, it also raises questions about fairness and the impact of factors beyond one's control.

TransUnion's Auto Insurance Score is determined by credit history

TransUnion's Auto Insurance Score is a three-digit number that predicts the likelihood of a driver filing an insurance claim. This score is determined by an individual's credit history. While it may seem odd for a credit-checking company to determine driving history risks, TransUnion uses elements of an individual's credit report to formulate their Auto Insurance Score. This score is not the same as a credit score.

TransUnion's Auto Insurance Score is based on the idea that an individual's credit history can impact their insurance risk. This means that a person's credit history can influence the likelihood of them filing an insurance claim. According to TransUnion, studies have shown that drivers with poor insurance scores are twice as likely to file insurance claims compared to those with the best scores.

The credit-based insurance score is calculated using various factors from an individual's credit history. These factors include the status of open accounts, the presence of late payments, and the length of credit history. A short credit history, late payments, and accounts in collections can negatively impact an individual's insurance score.

It is important to note that TransUnion's Auto Insurance Score is separate from an individual's driving record. Even with a spotless driving record, a low Auto Insurance Score can affect insurance rates and rental approvals. This was evident in a case where an individual with a good driving record but a low Auto Insurance Score was declined a car rental through Turo.

In summary, TransUnion's Auto Insurance Score, which is based on credit history, plays a significant role in determining insurance risk and can have real-world implications on car rentals and insurance premiums.

Turo offers five protection plans for hosts and three for guests

Turo is a peer-to-peer car rental platform that offers a wide range of vehicles, from cool and exotic cars to regular vehicles such as a Toyota Camry or a Nissan Altima. When renting a car from Turo, users have the option to choose from five protection plans for hosts and three for guests.

The five protection plans available for hosts are designed to provide peace of mind and financial protection in the event of an accident or damage to the rental car. These plans vary in terms of coverage and price, with some offering more comprehensive coverage than others. Here is an overview of the five protection plans offered by Turo:

• Standard Protection Plan: This plan includes liability insurance and physical damage protection, covering the host's vehicle up to its actual cash value in the event of theft or damage. It also provides up to $600,000 in liability coverage. However, hosts are responsible for a deductible, which can range from $500 to $3,000, depending on the vehicle.
• Premier Protection Plan: This plan offers similar coverage to the Standard Protection Plan but with a lower deductible, ranging from $0 to $300. It also includes additional benefits such as 24/7 roadside assistance and trip interruption reimbursement.
• Minimum Protection Plan: This plan is designed for hosts who have their own commercial rental insurance. It provides liability coverage of up to $750,000 and does not include physical damage protection.
• Commercial Host Plus Plan: This plan is tailored for commercial hosts who rent out multiple vehicles. It offers liability coverage of up to $1.5 million per vehicle and includes physical damage protection.
• Commercial Host Plan: This plan is also designed for commercial hosts but provides lower liability coverage of up to $750,000 per vehicle. It includes physical damage protection and offers additional benefits such as 24/7 roadside assistance.

On the other hand, the three protection plans available for guests are meant to provide financial protection and assistance during their rental period. Here is an overview of the three plans:

• Basic Protection Plan: This plan is included in the cost of the rental and provides liability insurance and varying levels of physical damage protection, depending on the vehicle. It also includes 24/7 roadside assistance. However, guests are responsible for a deductible, which can range from $3,000 to $5,000.
• Premium Protection Plan: This plan offers higher levels of liability and physical damage coverage, with a lower deductible of $500. It also includes additional benefits such as trip interruption reimbursement and 24/7 roadside assistance.
• No Protection Plan: This option allows guests to use their personal insurance or other third-party coverage for their rental. However, they are responsible for any damages or liabilities incurred during the trip.

It is important to note that the availability and specifics of each protection plan may vary depending on the location and the user's situation. Therefore, it is recommended to carefully review the details of each plan before selecting the one that best suits their needs.

Turo's protection plans are not a form of insurance

Turo is a peer-to-peer car-sharing service that lets users rent another person's vehicle. While Turo offers protection plans for both hosts and guests, these are not a form of insurance.

Turo is not a car insurance company, but it does offer protection plans through Travelers for an additional fee. There are three different levels of protection for renters in the US: premium, standard, and minimum. Higher levels cost more but provide extra benefits. For hosts, there are five different protection plans, with varying levels of benefits.

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. Guests will also need to use any personal auto insurance coverage before Turo's coverage applies.

Hosts who opt-in for a Turo protection plan will need to use any personal auto insurance coverage first before Turo's coverage applies. 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.

It is important to note that Turo's protection plans are not insurance and do not provide the same level of coverage as a traditional insurance policy. Guests and hosts should carefully review the terms and conditions of Turo's protection plans to understand the limitations and exclusions.

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