Jeffrey Wade
Turo is a popular online marketplace for renting a car outside of traditional rental companies. It is a car-sharing service that allows car owners to rent their cars to guests for a fee via an app. Turo offers multiple insurance plans for both guests and hosts, but it is not an insurance company. Guests can decline to add a Turo insurance plan if their personal car insurance extends to peer-to-peer rentals, while hosts must opt for a protection plan, even if they have commercial auto insurance. Turo hosts can choose from five protection plans, each offering reimbursement for car repairs up to the car's actual cash value in the event of damage during a trip. While Turo covers the cars during rentals, hosts might want to consider additional insurance for when the vehicle is not being rented out.
| Characteristics | Values |
|---|---|
| Turo's insurance offerings | Turo offers multiple tiers of auto insurance coverage for hosts and guests, including protection plans and liability insurance. |
| Guest insurance requirements | Guests can decline Turo insurance if their personal car insurance covers "peer-to-peer" rentals. Guests pay per day for coverage (starting at $10). |
| Host insurance requirements | Hosts must opt-in to a protection plan, even if they have commercial auto insurance. Hosts can choose from five plans, each offering repair reimbursements and 24/7 roadside assistance. |
| Physical damage reimbursement | Not considered insurance; contractual allocation of risk between Turo and the host. Hosts are responsible for the deductible, and Turo reimburses eligible repair costs. |
| Third-party liability insurance | Turo provides up to $750,000 in third-party liability insurance from Travelers for hosts. |
| Commercial insurance options | Roamly, Tint, GMI, and Lula are mentioned as potential commercial insurance providers for Turo hosts. |
| Personal insurance considerations | Personal insurance policies may cover rental cars, but some companies may treat peer-to-peer rentals differently. Guests and hosts should verify coverage with their insurance providers. |
| Alternative insurance products | Period X™ by ABI offers low-cost insurance for Turo hosts, providing coverage when vehicles are not rented out. |
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What You'll Learn
Turo insurance vs. standard rental car insurance
Turo is a peer-to-peer car-sharing service that lets users rent another person's vehicle. It is not an insurance company, but it does offer protection plans through Travelers for an additional fee. These plans are not insurance but a contractual allocation of risk between the host and Turo.
Turo hosts must opt for some level of protection plan, even if they have a commercial auto insurance policy. There are five plans to choose from, each of which offers reimbursement for car repairs up to the car's actual cash value in case of damage during a trip. All plans include $750,000 of third-party liability insurance, which is secondary to any personal auto insurance coverage. This means that a host's personal insurance coverage will be used first before Turo's coverage applies.
For guests, they can decline to add a Turo insurance plan if their personal car insurance extends to "peer-to-peer" rentals. If they do opt for a Turo insurance plan, they can expect to pay at least $10 per day, with the amount increasing depending on the overall cost of the trip and the deductible of each plan.
In comparison, standard rental car insurance is typically included in the cost of renting a car from a traditional rental car company. This insurance provides liability coverage, collision damage waiver, and personal accident insurance. It is meant for rental cars that are paid for, such as during vacations.
Overall, Turo insurance and standard rental car insurance are two different types of coverage. Turo insurance is meant for car owners who are renting out their vehicles, while standard rental car insurance is meant for individuals renting a car from a company.
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Turo protection plans for hosts
Turo offers five protection plans for hosts, each of which provides reimbursement for car repairs up to the car's actual cash value in the event of damage during a trip. The plans also include third-party liability insurance, physical damage reimbursement, and 24/7 roadside assistance. The specific details of each plan vary, with hosts having the flexibility to choose the option that best suits their needs.
The key components of the plans are as follows:
- Third-party liability insurance: All plans include up to $750,000 in third-party liability insurance from Travelers. This provides financial protection in the event of claims or lawsuits arising from incidents during a Turo trip.
- Physical damage reimbursement: Turo offers varying levels of contractual reimbursement for physical damage to the host's vehicle. The reimbursement covers the repair costs above the deductible amount, up to the actual cash value of the vehicle or a specified maximum amount (such as $125,000 or $200,000). It's important to note that physical damage reimbursement is not insurance, and hosts should document vehicle condition with photos before and after each trip.
- Earnings and deductibles: Each plan determines the percentage of the total trip price that the host will earn. A higher earning percentage typically corresponds to a higher deductible and fewer reimbursements available. The "host take" is the earnings after deducting the costs of the protection plan and any additional services offered.
- Loss of hosting income or replacement vehicle: Some plans offer reimbursement for loss of hosting income during vehicle repairs, while others provide a daily allowance for a replacement vehicle up to a specified maximum number of days. These options may be mutually exclusive, where choosing one benefit makes the host ineligible for the other.
- Wear and tear: The 60 plan is unique in offering reimbursement for exterior wear and tear, covering minor dings, dents, cracks, or scratches. However, none of the plans include reimbursement for interior wear and tear.
It's important to remember that Turo is not an insurance company, and hosts are still required to maintain their own personal car insurance. The Turo protection plans are specific to trips booked through the platform and do not cover incidents that occur when the vehicle is not on a Turo trip. Additionally, personal insurance policies may have exclusions that void coverage when the car is shared in a peer-to-peer car-sharing marketplace. As such, it is recommended to carefully review both Turo's protection plans and personal insurance policies to ensure comprehensive coverage.
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Turo protection plans for renters
Turo is not an insurance company, but it does provide hosts with protection plans that include liability insurance, physical damage reimbursement, and 24/7 roadside assistance. There are five protection plans to choose from, each of which offers reimbursement for car repairs up to the car's actual cash value in the event of damage during a trip. The liability coverage limit is $750,000 for all host protection plans, except in certain states and airports where additional coverage is required.
When it comes to renters, the protection plans offered by Turo provide peace of mind in case of accidents or damage during their trip. While the specific details of the protection plans for renters are not publicly available, Turo's website mentions that renters can drive with confidence, knowing that they are protected. The company also states that it provides the tools needed to make the car-sharing arrangement safe and easy for both hosts and renters, implying that there are measures in place to protect both parties.
In terms of insurance, Turo partners with the Travelers Excess and Surplus Lines Company to provide liability insurance for hosts. This policy does not cover damage to the host's vehicle, but it provides coverage for third-party claims arising from accidents during a trip. The protection plans available to hosts likely outline the extent of coverage for renters as well, although the specifics may vary.
It is recommended that renters carefully review the terms and conditions of their rental agreement with Turo to understand the extent of their protection and coverage. Additionally, renters may want to consider their own personal insurance options to ensure they have adequate coverage during their trip. Some insurance companies may offer policies that specifically cover ridesharing or car-sharing activities, providing an additional layer of protection for renters.
While Turo's protection plans provide a level of security for renters, it is always advisable to have comprehensive insurance coverage when operating a vehicle. Renters should carefully assess their needs and risks and consider additional insurance options if necessary to ensure they are fully protected during their Turo rental experience.
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Turo insurance and personal insurance
Turo is a car-sharing service that connects car owners with renters. It offers multiple insurance plans for both guests and hosts, with guests having the option to decline additional Turo insurance if their personal car insurance covers "peer-to-peer" rentals. Turo hosts, on the other hand, must opt for a protection plan, even if they have commercial auto insurance.
Turo offers several tiers of auto insurance coverage, and while it is not an insurance company, it does provide contractual reimbursement for physical damage to a host's vehicle. This reimbursement is subject to terms and exclusions and is limited to the lesser of the repair cost or the vehicle's actual cash value, up to $125,000. It's important to note that Turo's insurance does not change the contractual responsibilities of hosts or guests regarding physical damage.
Hosts can choose from five protection plans, each offering reimbursement for car repairs up to the car's actual cash value in case of damage during a trip. All plans include liability insurance, physical damage reimbursement, and 24/7 roadside assistance. The choice of plan determines the percentage of bookings hosts can earn, ranging from 60% to 90%.
Regarding personal insurance, it is important to note that car insurance typically follows the vehicle, not the driver. However, some personal insurance companies may treat peer-to-peer rentals differently, so it is crucial to verify coverage with your insurer. If your personal insurance covers peer-to-peer rentals, you will be responsible for your deductible in case of damage, and you may want to consider the advantages of a Turo protection plan as a secondary source of coverage.
Some personal insurance providers, such as Progressive, may deem Turo use as an unacceptable risk, while others may offer rideshare insurance options. It is worth exploring recommendations from other Turo hosts in your local community or considering specialised products like Period X™, which offers low-cost insurance designed specifically for Turo hosts.
In summary, Turo provides insurance options for both guests and hosts, with hosts being required to opt into a protection plan. Personal insurance policies may or may not cover peer-to-peer rentals, so it is important to verify this with your insurer and consider the implications of making a claim.
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Turo insurance and commercial insurance
Turo is not an insurance company, and it does not automatically provide insurance coverage for hosts and renters. However, it offers protection plans for both parties to choose from or decline if they have their own commercial or personal auto policies. These protection plans are not offered if a vehicle is booked with a commercial host, as they are expected to carry their own commercial policy.
The protection plans offered by Turo include up to $750,000 in third-party liability insurance from Travelers Excess and Surplus Lines Company. The plans also include physical damage reimbursement, which is not insurance but a contractual allocation of risk between the host and Turo. If a vehicle is damaged during a trip, the host must notify Turo and provide pre- and post-trip photos within 24 hours of the trip's end. Turo will then reimburse the host for eligible physical damage costs in excess of the deductible, up to the vehicle's actual cash value or $125,000.
For hosts seeking insurance for their vehicles when they are not on a trip, Turo has partnered with Tint, an embedded insurance and assurance infrastructure platform, to offer custom-designed insurance that meets the minimum requirements in any US state where coverage is available (except New York and Kentucky). Tint offers liability-only plans starting at $56 per month and damage plus liability insurance starting at $89 per month. To be eligible for Tint coverage, hosts must have three or more vehicles on Turo, and the coverage is for business use only.
Some commercial insurers that have been mentioned by Turo hosts on Reddit include Lula, Abi, and GMI. However, it is important to note that no personal financing company will accept commercial insurance, and obtaining a commercial loan requires established business credit. Therefore, it may be challenging to obtain proper insurance until a host has 10 or more cars.
It is recommended that individuals verify with their insurance providers whether their personal insurance policies cover rental cars or peer-to-peer car rental services like Turo. Additionally, credit card companies should be contacted to confirm whether they cover car-sharing rentals, as most exclude coverage for vehicles rented through peer-to-peer services.
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Frequently asked questions
Turo is a popular online marketplace for renting a car outside of traditional rental car companies. It is a car-sharing service that allows car owners to rent their cars to guests for a fee, via an app.
Turo offers multiple tiers of auto insurance coverage for both guests and hosts through Travelers. However, it is not included automatically and must be opted into. Renters can decline to add a Turo insurance plan if their personal car insurance extends to "peer-to-peer" rentals.
Some alternatives to Turo insurance for hosts include Roamly, Tint, GMI, and Period X™ by ABI. It is important to note that personal insurance companies may not cover Turo usage due to the peer-to-peer rental system.
