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Turo Insurance – What You Need to Know

Travelling to a new place is exciting, if it’s to the nice Miami beaches or the busy city of New York whatever the case may be, you would want to get around. If its Uber or Lyft ridesharing check out our article here.

If you are looking to rent a vehicle, we would recommend checking out Turo. Turo is considered the AirBNB for cars. Hosts will post a listing of their vehicle on the Turo website or app where you get access to view. The cool thing about this is you aren’t stuck with a boring rental for your trip, you can rent any vehicle you like for almost a similar or cheaper price! No matter a Mercedes or Toyota I’m sure you will find a car that suits you for your trip.

Using Turo you may be puzzled with how the insurance policies work. A million and one questions are going through your head and you don’t know the answers to them. It can be quite a discouragement if you don’t have the answers. We’re going to clear up as much as we can for you regarding Turo and how the insurance policies work for both hosts and renters.

How Does Turo Insurance Work?

Depending on which side of the spectrum you are on with Turo, how insurance affects you are completely different. So let’s break down host insurance vs renters insurance regarding their policies and coverage.

Turo Host Insurance

As a Turo host, you may be nervous, uneasy or have a mix of feelings you can’t put together because it’s a new territory for you to rent your vehicle out. Not to worry, we don’t blame you. Its natural to feel in such a way since everyone purchases their car for longevity and would like to protect their investment. You don’t want a headache with losing a vehicle and all of that. So if you fall in these categories, you may ask “why should I list my car on Turo then?”.

  • Great side income
  • Spare car at home you can rent for extra money
  • Want to give people the experience they can’t have back at home
  • Making a small business from the Turo market (we’ve seen it done)

As a host the insurance coverages with Turo can be done in one of two ways. You can select one of Turo insurance coverages or provide your own commercial rental insurance to your Turo customers.

Turo Host Insurance Coverage

There are three different insurance policies that you can choose form if you decide to use Turo’s insurance policies. All three insurance policies have their similarities and differences. As a host you will have to decide to which insurance policy is most suitable for you and your vehicle and what coverage you prefer and would be most comfortable with. Here is a list of the three plans available:

Basic Insurance Coverage

This is the cheapest insurance plan offered by Turo. To many it may be the best insurance coverage available based on all the factors that go into your Turo listing.

  • $1,000,000 Liability Insurance Coverage
  • Physical Coverage up to $125,000
  • Up to $3,000 deductible
  • You will Be able to keep 85% of the fees from the trip

Standard Insurance

The standard insurance is the middle tier insurance plan offered by Turo, it provides you with comes with adequate benefits for you and your vehicle.

  • $1,000,000 Liability Insurance Coverage
  • Physical Damage Coverage of up to $125,000
  • No Deductible
  • Replacement Vehicle during the repair time
  • You will be able to keep 75% of the trip fees

Premium Insurance:

The premium insurance as we said, covers you for $1,000,000 liability. As well as physical damage up to $125,000 for the value of the car. Here is the break down for the Premium insurance offered to you by Turo from Liberty Mutual Insurance.

  • Deductables
    • As a Turo Premium Insurance plan member you are not required to make a deducible towards a claim.
  • Replacement Vehicle
    • If your vehicle was damaged in an accident, as a Premium member Turo will provide you with a replacement vehicle during the period of your repairs.
    • If you are unable to get a replacement vehicle, Turo will reimburse you up to $30 a day for transportation up to 10 days.
  • Ware and Tear Coverage (Exterior)
    • If your vehicle has been dinged or dented, Turo will provide you with a coverage to repair the vehicle.
  • Loss of Rental Income
    • If your vehicle is being repaired and you are unable to rent it out in the time being, Turo will cover the loss of income during the repair period. Wow!
  • Trip Percentage
    • After your trip you will be able to keep 65% of the fees from the trip.

Commercial Rental Insurance

As a Turo user you are not obligated to use their insurance policies provided. You are allowed to opt out and use your own covered insurance policy. You will then be considered using a commercial rental host. Being a commercial host, you are able to operate your business at your leisure, all of the fees and any complications are left to your discretion. Although it is recommended that you disclose all of your information on your Turo description to provide the renter with optimal transparency before they rent.

If you are using your own commercial insurance, you as the host are responsible for all coverages.

  • Roadside assistance
  • Any Support Needed
  • All Claims
  • Returns
  • Fees

Although, not everyone would be able to be a commercial host. You must have a business that is considered a rental company as well as having a high standard of customer satisfaction and values that are on par with that of Turos.

Insurance for Renters

Much like the insurance offered to owners, Turo offers the renters some insurance policies as well to help them on their journey.

When renting from Turo, once you get to the checkout phase you will be required to take one of three insurance policies.

  • Premium Insurance
    • If you were in an accident, you will be required to make a deductible payment of $500. Although if the damage costs are lesser, you will be refunded the difference.
  • Basic Insurance
    • If you were in an accident, you will be required to make a deductible payment of $3000. Although if the damage costs are lesser, you will be refunded the difference.
  • Using Your Own Insurance
    • You may choose to decline coverage and use your own insurance coverage. It is highly recommended that you check with your insurance company to make sure you will be covered under Turo, although it will be deemed unlikely.

If you find the above information to be a bit confusing or you may have more questions it is encouraged that you reach out to Turo and have all your questions answered before you decide to rent a car from them.