Auto Insurance And Turo Rentals: What's Covered?

Turo is a car-sharing service that allows users to rent out their personal vehicles to others for a fee. When it comes to insurance, Turo offers multiple protection plans for both renters and hosts. However, it's important to note that Turo insurance is not automatically included and users have the option to decline it if they have their own commercial or personal auto policies. If you're wondering whether your auto insurance will cover a Turo rental, the answer may vary depending on your insurance provider. Some insurance companies may treat peer-to-peer car rental services like Turo differently from traditional car rental agencies. It's crucial to verify with your insurance provider whether your policy covers Turo rentals specifically, as some companies may exclude coverage for this type of car-sharing service.

Turo insurance for borrowers

Turo is a peer-to-peer car-sharing service that allows you to rent another person's vehicle. It is similar to Airbnb, but for cars. When using Turo, it is important to understand how their insurance works and whether you need additional coverage.

Turo Insurance Options for Borrowers

Turo offers three levels of protection for borrowers in the US: Premium, Standard, and Minimum. These plans provide varying levels of coverage and benefits, with higher levels costing more. The Premium plan offers the most coverage, with a cost of 65% of the trip price and a minimum of $14 per day. The Standard plan offers less coverage and costs 40% of the trip price, with a minimum of $12 per day. The Minimum plan provides the least amount of coverage and costs 18% of the trip price if it is less than $250, or 25% if it is more than $250, with a minimum of $10 per day. Regardless of the plan chosen, borrowers won't be responsible for physical damage beyond the deductible. However, they will be responsible for mechanical and interior damage to the car.

Using Personal Car Insurance with Turo

Borrowers can choose to decline Turo's protection plans if they have their own personal car insurance policy that extends to peer-to-peer rentals. However, it is important to verify with your insurance company that your policy covers Turo rentals, as some insurers exclude coverage for peer-to-peer car-sharing services. Additionally, credit card travel insurance policies typically do not cover Turo rentals. If you choose to rely on your personal insurance, keep in mind that you may be responsible for your deductible and will have a claim on record if you need to make a claim for damage to the Turo vehicle.

Turo Insurance vs. Standard Rental Car Insurance

It is important to understand the differences between Turo insurance and standard rental car insurance. Turo insurance is meant for rental cars that you pay to use on vacation or when your personal car is not functioning due to a covered claim. On the other hand, standard rental car coverage in your insurance policy kicks in when your car is not driveable and covers the cost of a rental vehicle until your car is repaired.

Turo Insurance Costs for Borrowers

The cost of Turo insurance for borrowers starts at $10 per day for the Minimum plan. The Standard plan costs a minimum of $12 per day, while the Premium plan costs a minimum of $14 per day. These costs are based on a percentage of the overall trip cost and can increase depending on the length of the rental and the deductible chosen.

In summary, when using Turo as a borrower, it is important to carefully consider your insurance options. Turo offers its own protection plans, but you may also be covered by your personal car insurance or credit card. However, it is crucial to verify this coverage with your insurance provider before assuming you are insured.

Turo insurance for owners

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 vehicles to guests for a fee via an app. Turo offers multiple insurance plans for both guests and hosts.

Turo offers five tiers of coverage to their hosts, named after the percentage of the cost the host receives: 60, 75, 80, 85, or 90 plans. Hosts are required to choose a Turo protection plan, even if it is the highest deductible. The take-home amount per trip will change depending on the protection plan chosen.

All host protection plans in the United States come standard with up to $750,000 in third-party liability insurance issued to Turo under a policy from Travelers, as well as varying levels of contractual reimbursement for physical damage and theft. The level of protection varies with the plan chosen. For physical damage reimbursements, hosts are responsible for the deductible amount, which varies by plan, and then Turo reimburses the rest of the eligible repairs up to the actual cash value of the car or $200,000, whichever is the lesser amount.

The 60 plan includes exterior wear and tear reimbursement, including dings, dents, cracks, or scratches that are three inches in diameter or less, for eligible vehicles. It also includes loss of hosting income during repair or $50/day replacement vehicle reimbursement. The 75 plan offers solid coverage with a minimal deductible and includes a $30/day replacement vehicle reimbursement during repair. The 80, 85, and 90 plans have higher deductibles and do not include exterior wear and tear reimbursement or loss of hosting income during repair.

It is important to note that Turo is not an insurance company, and the physical damage reimbursement is a contractual allocation of risk between the host and Turo. Hosts must still have their own personal car insurance for their vehicle, as required by law. The vehicle protection plans offered by Turo only apply to trips booked on Turo.

Personal car insurance coverage for Turo

Turo is a car-sharing service that allows users to rent out their private vehicles to other people. It is important to note that Turo does not automatically provide insurance coverage for either hosts or renters. However, renters can choose to rely on their personal car insurance policies if they offer coverage for "peer-to-peer" rentals.

It is imperative for renters to verify with their insurance providers whether their personal car insurance covers rentals from peer-to-peer services like Turo. Many insurers cover most rental cars but may not cover Turo rentals specifically due to the peer-to-peer system. Renters should ask their insurance providers exactly what coverages extend to a Turo vehicle, as they may offer liability but not physical coverage for the rental car.

If a renter's personal car insurance policy covers peer-to-peer rentals, they can choose to decline Turo's protection plans. However, it is important to note that if an accident occurs, the renter will be responsible for their deductible and will have a claim on record, even though it wasn't their own car.

Some insurance companies, such as Progressive and Geico, have confirmed that their policies cover Turo rentals just like any other rental car. On the other hand, companies like State Farm, American Express, and USAA have stated that they do not consider Turo to be a car rental company, and therefore their coverage does not apply.

Therefore, it is crucial for Turo users to carefully review their personal car insurance policies and consult with their insurance providers to determine if their coverage extends to Turo rentals before deciding whether to rely on their personal insurance or purchase a Turo protection plan.

Credit card coverage for Turo

American Express (Amex) and Chase, for example, will not cover Turo rentals unless you can prove the vehicle came from a commercial rental car agency. Amex's website states that its insurance excludes:

> Vehicle sharing or peer-to-peer arrangements which allow independent owners to rent personal vehicles.

Similarly, Chase's insurance doesn't cover "leases and mini leases" or "vehicles that are not rented from a rental agency".

However, it's worth noting that some credit card companies may provide coverage for Turo rentals in certain circumstances. For example, a Chase benefits specialist said that Chase's insurance doesn't exclude all Turo rentals, but only covers rentals completed through a commercial rental car agency with a contract showing that you are renting from a commercial company and not an individual.

Therefore, it's essential to carefully review the terms and conditions of your credit card or call the number on the back of your card to verify whether your credit card company covers car-sharing rentals like Turo.

It's also important to understand the limitations of credit card coverage. Even if your credit card's collision damage waiver covers your Turo rental, it won't cover damage to other cars, personal property, or injuries to you, your passengers, or pedestrians.

Turo protection plans

Turo offers multiple insurance plans for both guests and hosts. Guests can decline to add a Turo insurance plan if their personal car insurance extends specifically to "peer-to-peer" rentals. However, it is imperative to double-check with your insurance company to see if your personal car insurance coverage extends to a Turo rental. Many insurers have no issues covering most rental cars, but may not cover Turo rentals specifically because of the peer-to-peer system.

Hosts must opt-in to a protection plan, even if they have a commercial auto insurance policy. While you must have a personal car insurance policy to host through Turo, it will never extend to cover the rental use of your vehicle(s) because you are using the vehicle for commercial purposes. You will risk your insurance provider dropping you as a client if you rent out your personal car as a business.

Turo offers three tiers of coverage for renters and guests:

• 15% of the trip price for trips over $250 and 25% when less than $250. Minimum $10/day.
• 40% of the trip price. Minimum $12/day.
• 65-100% of the trip price. Minimum $14/day.

For hosts, Turo partners with Travelers to provide a choice between five tiers of coverage, named after what percentage of the cost the host receives: 60, 75, 80, 85 or 90 plans. Hosts are required to choose a Turo protection plan, even if it is the highest deductible.

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 all of these plans are meant to be used as secondary coverage to any other insurance you may already have.

The protection plans are not insurance policies and Turo makes it clear in the terms of service for both guests and hosts. They are protecting you financially, not your vehicle.

Frequently asked questions