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The Reason You Need Turo Insurance & Which To Purchase

Join us as we cover how Turo insurance works, what types are offered, and discuss whether or not this insurance is necessary.

Key Takeaways

  • Turo partners with insurers to offer coverage plans for hosts and renters.
  • Host plans deduct costs from earnings; guest plans vary by coverage and cost.
  • Plans cover damages and liability; high-tier plans offer more benefits but cost more.
  • Choose insurance based on car value, driving habits, and personal risk tolerance.

Turo’s peer-to-peer car rental offers unique cars, competitive prices, and incredible convenience.

While the rental service is as straightforward and simple as it gets, Turo’s insurance policies are a completely different story.

Since purchasing insurance makes Turo much safer for a variety of reasons, you must have a better background of how it works before renting cars on the platform.

That’s where this guide comes in handy, as I’ll walk you through a comprehensive guide with everything you need to know about Turo insurance, including how it costs and how much it should cost you.

A Brief Overview of How Turo Insurance Works

Before diving into the details of this guide, you should first understand how Turo works for both hosts and renters.

Simply put, Turo is a car-sharing platform allowing car owners (called hosts) to rent their cars to people (called guests) for a specific fee.

One of the main requirements for using Turo for both car owners and renters is to have car insurance. This one is to handle the cost of repairs in the case of any damage or liability.

That being said, Turo doesn’t directly provide insurance. Instead, it partners with established insurance companies to offer various coverage plans for the platform users.

Currently, Turo’s insurance partner is The Travelers Companies, Inc. (also known as Travelers), which is one of the largest insurance providers in the US.

The plans vary in terms of coverage level. Of course, a higher-tier plan offers additional coverage and extra benefits, but it’s also more expensive to purchase.

It’s also important to know that the insurance plans offered to hosts are different from the ones offered to guests.

Brett’s Take: Thoughts From an Expert

I almost never purchase the insurance on a rental vehicle because I am covered by both my personal auto insurance policy, as well as the AMEX card I usually pay for rentals on.

However, after meeting with my insurance agent as part of my annual review, I asked about insurance on peer-to-peer car rental plaforms like Turo. His jaw dropped to the floor when I said I declined the coverage on a recent Turo rental I took while traveling.

He told me to ALWAYS check with an insurance agent before declining the insurance. The reason? There’s a clause in my policy (and also most auto insurance policies as a whole) that excludes coverage on platforms like Turo.

The long short – call you insurance agent and check your own policy. You’re probably not covered when renting with Turo, meaning you are at HUGE risk if something goes wrong.

Types of Insurance Coverage Offered by Turo

As previously established, Turo handles car insurance in the form of multi-tier plans. However, the packages for hosts are not the same as the ones offered for guests.

In this section, I’ll walk you through the details of each one of these packages, so you can pick the ones suitable for you.

Turo Insurance Plans for Hosts

As a host, Turo won’t charge you any fees for purchasing an insurance plan. Instead, the company will deduct the price of the insurance from the trip earnings when someone rents your car.

The amount of money that Turo deducts from your trips depends on the coverage plan that you’ve selected.

Currently, Turo offers five different host insurance plans. All of them include a standard $750,000 third-party liability insurance. Here’s a brief overview of the different plans:

Plan NameEarnings Kept by HostDeductibleThird-Party Liability InsuranceDamage CoverageAdditional Benefits
The 60 Plan60% of trip earnings$0$750,000100% of eligible damage costsReimbursements for exterior wear and tear, loss of income during repairs (up to $50/day)
The 75 Plan75% of trip earnings$250$750,000100% above deductible$30-per-day vehicle reimbursement during repairs, no loss of income coverage
The 80 Plan80% of trip earnings$750$750,000100% above deductibleNo additional benefits beyond standard coverage
The 85 Plan85% of trip earnings$1,625$750,000100% above deductibleNo additional benefits, higher deductible for increased earnings
The 90 Plan90% of trip earnings$2,500$750,000100% above deductibleNo additional benefits, highest deductible for maximum earnings

1. The 60 Plan

The 60 plan is the highest-tier plan Turo offers and comes with maximum benefits. In return, riders keep only 60% of the trip earnings.

The plan offers the standard third-party liability insurance of $750,000 in addition to covering 100% of eligible damage costs in addition to physical damage reimbursements with zero deductibles.

Additionally, Turo reimburses the hosts for the exterior wear and tear that results from using the car during rental.

This plan is also the only one that reimburses the host for loss of income during car repairs (up to $50 per day).

2. The 75 Plan

This one is the second tier option in terms of benefits at the cost of 25% of the earnings. It’s an ideal option if you mainly want to keep the deductible to a minimum ($250) while enjoying other perks.

Besides the standard third-party liability coverage, Turo also covers 100% of the damages above deductibles.

While the plan doesn’t cover loss of income during repairs, it has a $30-per-day vehicle reimbursement while repairing your car.

3. The 80 Plan

This plan strikes a decent balance between keeping earnings and enjoying decent insurance benefits.

As the name suggests, hosts keep 80% of the tip earnings in this plan while enjoying standard features like third-party liability insurance and covering damages 100% of damages.

The deductible amount here is $750, which means you’ll pay for some of the minor mechanical damages but Turo still handles the majority of the costs.

However, unlike the 75 plan, you don’t get any benefits beyond that point. This means no reimbursements for wear and tear or loss of income.

4. The 85 Plan

The 85 plan is practically the same as the 80 plan in terms of benefits. The only difference between the two is that it raises the deductible in exchange for a bigger piece of the pie.

In other words, the host gets to keep up to 85% of the income the car generates on trips. That being said, in the case of an accident, the host’s deductible is $1,625.

As you can see, the deductible amount here is high enough to cover a considerable amount of damages.

Since Turo will only cover the costs above the deductible, you end up bearing the expenses of most routine repairs.

5. The 90 Plan

This one is also a fairly popular plan because it provides the highest earning potential among Turo insurance plans.

Hosts keep up to 90% of the trip earnings, which is much higher than the 60% of the fully covered plan.

However, it comes with the highest risk among all others because the deductible amount is remarkably high, standing at $2,500.

At such a high deductible, hosts end up covering almost all basic damages in addition to some heavy ones.

You still get up to $750,000 in third-party liability and Turo covers all the damages above the deductible. But at such a high deductible, this technically applies to major accidents only.

Turo Protection Plans for Guests

Unlike hosts, Turo’s call their plans for guests “Protection Plans”, rather than insurance. This is because they’re not technically car insurance.

Instead, they’re liability insurance that covers part of the renter’s responsibility to pay for physical damage. Yet, Turo’s guest insurance also comes in multiple tiers with varying levels of benefits.

Turo offers four different protection policies for guests. Here’s a quick look at what each one of them covers:

Plan NameDescriptionCost CalculationDeductibleLiability InsuranceMinimum AgeVehicle Value Requirement
Standard PlanCommon choice, balances cost & cover40% of trip rate, min $12/day$500State-required minimumN/AN/A
Premier PlanHighest tier, best coverage65% of trip price, min $14/day$0Up to $1.25 million (varies)21Over $60,000 (some $25,000+)
Minimum PlanLow-cost option25% if < $250 total, 18% if ≥ $250 totalUp to $3,000State-required minimumN/AN/A

1. The Standard Plan

  • The most common plan for Turo renters (guests)
  • Excellent balance between cost and coverage
  • Costs 40% of the Turo trip rate, with a minimum daily charge of $12
  • Guests handle a deductible of $500, which covers physical damages.
  • The plan offers the minimum third-party liability insurance amount that the state requires
  • No contractual responsibilities for mechanical and interior damages to hosts’ vehicles.
  • Secondary to any personal insurance

2. The Premier Plan

  • The highest tier plan for guests
  • Offers the best coverage for the highest cost, so it’s ideal for those who prefer their peace of mind.
  • Costs 65% of the Turo trip price, with a minimum daily charge of $14
  • Includes third-party liability insurance of $750,000 in all states (up to $1,250,000 in New York)
  • Renters pay no deductibles 
  • Only available for vehicles with over $60,000 in market value (and some specific vehicles valued above $25,000)
  • Only eligible for guests who are 21 years old or older

3. The Minimum Plan

  • Costs 25% of the trip rate if the trip’s total price is under $250 
  • Costs 18% of the trip rate if the trip’s total price is $250 or above
  • Offers the same benefits as the Standard Plan, including minimal liability insurance required by the state and limited coverage for mechanical and interior damages to the vehicle
  • Renters pay a deductible of up to $3,000 to cover physical damages to the host’s car

How Much Does Turo Insurance Cost for Renters?

As you can see, Turo’s protection plans are usually a percentage of the base trip price. In other words, you need to calculate the cost of your trip to figure out the cost of your insurance.

Luckily, you can Turo’s cost calculator to estimate the cost of your trip, which should also include the cost of insurance, based on the plan you pick.

Ideally, Turo trip costs vary depending on plenty of factors, including rental period, car value, guest’s age, state, and more.

The good news here is you can use a Turo promo code to reduce the total costs of renting a vehicle.

Understanding Turo Insurance Deductibles and Limits

The deductible is the amount of money you pay out of pocket before Turo’s insurance kicks in, whether you’re a host or a guest.

On the other hand, limits are the total your insurance pays for a claim, which is standard for all Turo plans.

For a host, the choice here depends on whether you value your peace of mind or if you want to maximize your potential earnings at the cost of spending more in the case of an accident.

As for guests, the lower your insurance premium, the lower the ride will cost you but also the higher the deductible in the case of physical damage to the vehicle.

Guests can decline Turo’s insurance if they already have a protection plan that includes liability for damages.

However, the plan must include liabilities for cars rented through peer-to-peer platforms, so you have to check that with your carrier before declining Turo’s insurance.

Also depending on some trip details or state requirements, guest protection plans might be mandatory.

Turo’s Insurance Compared to Personal Auto Insurance

As previously established, having car insurance is mandatory for any vehicles shared through the Turo platform.

However, if a host already has commercial auto insurance for their vehicle(s), they don’t have to get Turo’s insurance.

That being said, as a host, it’s still worth considering to opt for Turo’s insurance because it comes with various advantages.

For starters, according to Turo’s terms of use, it won’t bear any financial responsibilities for physical damage protection if the car doesn’t have Turo’s insurance. In other words, you’ll have to handle the coverage with your insurance company personally.

Additionally, Turo designs its pricing policy so that hosts without Turo insurance earn a relatively smaller share of the trip earnings than those who do.

The good news here is that Turo isn’t your only option if you want to rent out your car, so if you find the company’s insurance policy restrictive, you can always check out an alternative.

State-Specific Insurance Considerations

Turo’s insurance is heavily dependent on state laws where the car rental process goes. This doesn’t only apply to hosts but also guests.

For example, while the liability insurance in all states is $750,000, the amount is raised to $1,250,000 in New York to meet the state’s minimum requirements.

Similarly, in Washington, Turo’s insurance covers vehicle damage for the host, but the host and renter still have to follow the state’s law about who pays if something gets damaged.

Every state will have its unique laws, so you must always consult a legal professional to understand the contractual responsibilities in the state.

How Insurance Works for International Renters

Besides the US, Turo operates in many countries around the world, including the UK, France, and Australia.

Each one of these countries will also have its unique laws in terms of car insurance, so Turo will adjust its plans and contractual agreements to abide by these laws.

Ideally, international renters have to abide by the local laws where they’re renting a vehicle, regardless of their insurance status in their country.

This might vary for those with cross-border insurance coverage, so you should contact Turo for more information about your situation in that case.

The Process of Making an Insurance Claim with Turo

Here’s a breakdown of the process of making an insurance claim with Turo:

  1. Contact Turo to inform them about the damage, including any necessary documents and photos that the support team will request.
  2. Turo will then check the claim eligibility as well as the insurance tier for both the host and the guest
  3. An expert team will inspect the vehicle to estimate the amount of damage
  4. Turo sends a full report of the costs to both parties
  5. Deductibles are charged from payment cards used
  6. Turo covers 100% of the eligible damages of the vehicle.

Turo Insurance Recommendations for Renters

With different protection plans, choosing the ideal one for your needs can be quite challenging. So here’s a general rule to consider before making up your mind.

If you have no specific preference, always go for the standard plan. It provides the minimum necessary insurance per state laws and comes with a relatively low deductible.

This plan works best if you’re a careful driver if you’re renting out a low-value ride. However, if you’re renting a luxury vehicle, damages can be quite pricey.

For that reason, opting for the Premier plan will give you peace of mind while driving it around.

Frequently Asked Questions

Do You Get Protection Plan Money Back On Turo?

Turo offers a full refund along with any extras and fees that you’ve paid, such as the young driver fee.

However, to be entitled to a full refund, you have to make the request with the free cancelation period. This period typically varies depending on the length of your rental.

If you request a cancel your guest protection plan outside that period, you’ll still get a refund, but not in full.

What Happens to Insurance if a Turo Host Cancels?

The answer here depends mainly on the time when the host cancels the trip. If the host cancels the trip 24 hours before it starts, they’ll have to pay a cancellation fee of $25.

However, if the host cancels less than 24 hours before the trip, Turo bumps up the fee to $50. The renter will get refunded their insurance fee as well.

Wrapping Up

Turo insurance makes it a lot safer to enjoy your ride without worrying about damages and liabilities. So, you must give this aspect the attention it deserves while renting out the vehicle.

Opting for a higher-tier plan can be a wise investment against unexpected costs, especially if you typically drive on highways and bumpy roads.

On the other hand, it’s also better to save your money if you’re driving in small towns where major damage is unlikely, so make sure that you assess your needs to make the best decision for your case.

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