Zoe Alvarez
If you're considering renting a car from Turo, it's important to understand how their insurance works. Turo offers multiple insurance plans for both guests (renters) and hosts (car owners). While Turo's protection plans provide substantial coverage, they are supplementary to your existing insurance policy, meaning you need to have some form of car insurance to rent from Turo. The platform offers insurance through partners like Travelers and Liberty Mutual, and the cost is based on the number and total cost of each trip. Guests can decline Turo's insurance if their personal insurance covers peer-to-peer rentals, but hosts must opt for a protection plan, even with commercial insurance. Understanding your insurance coverage and Turo's offerings is crucial before committing to a rental on the platform.
| Characteristics | Values |
|---|---|
| Turo's insurance offerings | Worth it for hosts if a commercial policy proves more costly for the same coverage |
| Turo's insurance costs | Based on the number and total cost of each trip |
| Turo's insurance plans | Offered through Travelers and Liberty Mutual |
| Turo's insurance coverage | Supplementary to an individual's existing insurance policy |
| Turo's protection plans | Provide substantial coverage but are not a replacement for personal auto insurance |
| Turo's protection plans | Offered for a fee |
| Turo's protection plans | Offered to both guests and hosts |
| Turo's protection plans | Offered in multiple tiers |
| Turo's protection plans | Include liability insurance, physical damage reimbursement, and basic roadside assistance |
| Turo's protection plans | Not automatically included |
| Turo's protection plans | Can be declined by guests if they have their own insurance |
| Turo's protection plans | Must be opted into by hosts, even if they have a commercial auto insurance policy |
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What You'll Learn
Turo insurance vs. standard rental car insurance
Turo is a car-sharing service that allows car owners to rent their cars to guests for a fee via an app. It offers a range of insurance plans for both guests and hosts, with guests having the option to decline additional insurance if their personal car insurance covers "peer-to-peer" rentals.
Turo Insurance for Hosts
Turo hosts must choose a protection plan, even if they have a commercial auto insurance policy. All host plans come with up to $750,000 in third-party liability insurance, with the option to increase this amount for extra peace of mind. Each plan offers reimbursement for car repairs up to the car's actual cash value in the event of damage during a trip. However, it's important to note that Turo's insurance does not cover damage to the host's vehicle, and hosts are responsible for the deductible amount before Turo reimburses the remaining repair costs.
Turo Insurance for Guests
Guests using the Turo platform have the option to add a Turo insurance plan to their rental. The cost of insurance for guests starts at $10 per day and varies based on the overall cost of the trip and the deductible of the chosen plan. Guests who already have personal car insurance may not need to purchase additional insurance from Turo, as their existing policy may cover rental cars.
Standard Rental Car Insurance
Standard rental car insurance typically refers to the insurance offered by traditional car rental companies. This insurance is usually included in the rental cost and provides coverage for damage to the rental vehicle and liability protection in case of an accident. The coverage limits and deductibles can vary depending on the rental company and the selected plan.
Comparison
Turo insurance differs from standard rental car insurance in that it is not automatically included in the rental cost. Turo guests have the option to decline additional insurance if their personal insurance extends to "peer-to-peer" rentals. In contrast, standard rental car insurance typically provides coverage directly to the rental car company for damage to the rental vehicle. Additionally, Turo insurance offers a range of plans with varying levels of coverage, while standard rental car insurance may offer more limited options.
In summary, Turo insurance provides flexibility for both hosts and guests, allowing them to choose the level of coverage that suits their needs. Guests with existing personal car insurance may find that their policy already covers Turo rentals, while hosts can select a protection plan that provides peace of mind without incurring unnecessary costs. Standard rental car insurance, on the other hand, typically includes basic coverage but may offer less flexibility in terms of plan options and coverage limits.
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Turo insurance for guests
If you are renting a car through Turo, you need some form of car insurance. Turo offers protection plans for a fee through insurance partners such as Travelers and Liberty Mutual. As a guest (the person renting the vehicle), you are required to have car insurance, and the coverage you need can either come from your insurance policy or from a protection plan purchased through Turo.
Turo's insurance is secondary, meaning that you would need to use any personal auto insurance coverage before Turo's coverage applies. Turo's protection plans provide substantial coverage, but they are not a replacement for personal auto insurance. Therefore, it is crucial to understand your personal insurance policies and the extent of Turo's coverage before using the platform.
If your insurance covers you in a Turo rental, and the car is damaged to the point that you decide to make a claim, you are responsible for your deductible and will have a claim on record. This is something to consider when deciding whether to rely on your own coverage or buy a protection plan that could eliminate the need for a claim through your personal policy.
As a guest, you can decline to add a Turo insurance plan if your personal car insurance extends specifically to "peer-to-peer" rentals. However, there are important considerations and requirements to keep in mind before declining Turo's insurance. For example, you should check with your insurance provider, as not all personal auto insurance policies cover rentals, especially when it involves a peer-to-peer car-sharing service like Turo.
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Turo insurance for hosts
Turo is not an insurance company and does not provide insurance for hosts. However, it does provide varying levels of contractual reimbursement for physical damage and theft, as well as third-party liability insurance of up to $750,000 from Travelers Excess and Surplus Lines Company. This third-party liability insurance protects hosts from legal exposure for claims of bodily injury or property damage to a third party that may occur during a guest’s trip.
When choosing a protection plan, hosts can decide how much of the trip price they want to earn, with higher earnings resulting in a higher deductible and fewer reimbursements. 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 less. It is important to note that physical damage reimbursement is not insurance but a contractual allocation of risk between the host and Turo.
While Turo provides protection during trips, hosts are still required to have their own personal car insurance for their vehicles. This is because Turo's protection plans only apply to trips booked on the platform, and any damage that occurs when the vehicle is not on a Turo trip would need to be claimed through the host's personal insurance. Additionally, personal insurance policies typically have exclusions that void coverage when the car is shared in a peer-to-peer car-sharing marketplace.
Some insurance companies, such as Progressive, may consider Turo use an unacceptable risk and refuse coverage. Hosts can explore other options, such as commercial coverage or insurance companies that specifically cater to car-sharing, like Roamly, Tint, and GMI. It is recommended to connect with other hosts, such as through local Turo Facebook groups, to find recommended insurance agents and companies that are friendly to Turo hosts.
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Turo insurance in specific states
When using Turo, it is important to understand the insurance requirements and protections in place. While Turo offers insurance plans for both guests and hosts, the specific state where the vehicle is registered and the trip takes place can impact the insurance coverage and requirements. Here is a breakdown of Turo insurance in specific states:
Washington State
In the state of Washington, Turo purchases insurance that covers Physical Damage to the host's vehicle. However, it's important to note that Turo's insurance does not change the contractual responsibilities of hosts or guests regarding Physical Damage to the host's vehicle. Certain roadside assistance fees may also be charged.
Maryland and Other Licensed States
In Maryland and certain other licensed states, Turo provides third-party liability insurance with coverage of up to $750,000 for all host protection plans. However, Turo is not an insurance company, and its contractual reimbursement for physical damage to a host's vehicle is not insurance. Hosts in these states can contact Turo Insurance Agency for more information about liability insurance and damage handling.
States with Minimum Coverage Requirements
Some states, such as those with state-mandated minimum amounts of coverage, may require guests to have their own insurance. Renters should verify with their insurance providers if their policies specifically cover peer-to-peer rentals like Turo. If their insurance extends to Turo rentals, they may choose to decline Turo's protection plans.
It's important to note that Turo hosts must always opt-in for some level of Turo protection plan, even if they have personal car insurance. The specific state where the vehicle is registered may impact the insurance requirements for both hosts and guests, so it's crucial to review the insurance details before booking or listing a vehicle on Turo.
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Turo's insurance partners
Turo offers its users third-party liability insurance provided under a policy issued by Travelers Excess and Surplus Lines Company, a major US insurance company. All Turo hosts can choose from five protection plans that are right for them, with each plan offering up to $750,000 in third-party liability insurance from Travelers. The cost of each level of insurance is based on a percentage of the total rental amount charged. The plans also include reimbursement for car repairs up to the car's actual cash value in case of damage during a trip.
Turo's insurance does not cover damage to a host's vehicle. However, when a trip is booked in the state of Washington, physical damage to the host's vehicle is covered by insurance purchased by Turo. Turo will reimburse hosts for eligible physical damage costs in excess of the deductible, subject to terms and exclusions, for the lesser of the cost of repair up to the actual cash value of the vehicle or $200,000.
It is important to note that Turo is not an insurance company, and contractual reimbursement for physical damage to your vehicle is not insurance. While Turo provides insurance, nearly every state requires car insurance to register and drive a private vehicle. Therefore, you will still need your own car insurance policy to host on Turo. In some states, your car insurance company can prohibit you from renting your car on Turo.
Some examples of insurance companies that will not insure vehicles for car-sharing services like Turo include Progressive, Geico, Liberty Mutual, and State Farm.
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Frequently asked questions
Yes, you do need some form of car insurance when renting from Turo. However, whether you need to buy additional insurance depends on the level of coverage you want and whether your personal car insurance covers you while renting on Turo. You can decline Turo's protection plans as a guest if you have sufficient coverage.
Yes, as a car owner renting your vehicle on Turo, you will need insurance (which can be commercial) and you'll choose a plan through Turo while listing your car.
Turo offers multiple insurance plans (via Travelers) 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.
Every protection plan includes liability insurance, physical damage reimbursement, and access to basic roadside assistance. Liability coverage is up to $750,000 for all host protection plans, except in some states and at some airports that require additional coverage.
