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Turo Insurance: How Coverage Works for Renters and Hosts

Last updated: July 21, 2021
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turo car host holding a turo insurance form and giving it to the turo car renter

Turo’s car sharing app makes it easy to bypass working with traditional car rental companies.

If you need to rent a car, you’ll often find that you can do so cheaper through Turo.

Renting out your car helps you use your vehicle to add additional monthly income.

Whether you’re a host or renter, however, it’s important to understand how Turo insurance coverage works.

You never want to operate without the proper motorist coverage and expose yourself to unnecessary financial harm.

We’ve put together a complete guide below, so you’ll know how to protect your financial interests in the event of an accident.

What Is Turo Insurance?

Turo’s insurance agency, called Turo Insurance Agency, LLC, offers insurance from Liberty Mutual.

Using this third-party liability insurance policy, car owners can choose from five different plans.

You have the choice of selecting up to $750,000 in liability protection.

Various options exist to make sure you get reimbursed for car repairs after an accident occurs.

If you’re a guest, then you can choose Turo insurance to protect against physical damage that may happen during your trip.

Liability insurance is available to protect you against bodily injury you may cause to others during an accident.

Does Turo Include Car Insurance?

Insurance isn’t automatically available for renters or hosts.

You must select one of Turo’s insurance plans to benefit from Turo coverage.

After you opt-in for a Turo protection plan, their coverage will supplement your existing insurance policy.

Never assume that your personal insurer will cover your interests because some insurance providers won’t protect you when using a peer to peer car rental app.

Do I Need to Buy Car Insurance When I Rent from Turo?

turo car host holding a turo insurance form and giving it to the turo car renter

It’s not a requirement to purchase car insurance from Turo when you’re renting a car.

You can decline coverage if you want to.

You must know that most insurance companies don’t classify Turo in the same way they do when renting from a traditional car rental company.

A rental insurance policy that covers you with rentals may not offer the same additional coverage when renting from Turo vehicle owners.

The same applies to rental car insurance you might use from a credit card company.

That’s why an entire market for secondary insurance, called gap insurance, has popped up.

Turo Insurance for Hosts

You can access car reimbursement, liability, and 24/7 roadside assistance with your Turo plan as a host.

How Turo Insurance Works for Hosts

Turo insurance only covers you for Turo-booked trips.

You must carry personal auto insurance to comply with your state’s laws and stay protected when you’re not renting your car out with Turo.

Once a Turo trip begins, your chosen Turo vehicle protection plan kicks in during the trip to act as your primary insurance coverage for any damages incurred.

This shouldn’t affect your personal insurance in any way since most insurance providers will exclude your car sharing activities.

Advise your renters to immediately report any accident they’re involved in while driving your vehicle.

If you want to make sure that you receive reimbursement under a Turo protection plan, then you must document your car’s condition at the beginning and end of every trip.

Take photos and upload them into the Turo app’s check-in and checkout option.

You have a 24-hour window after a trip ends to report any damage to your car.

Turo Insurance Options for Hosts

Turo offers five different plans:

  • 60 Plan
  • 70 Plan
  • 75 Plan
  • 80 plan
  • 85 Plan

Each of these plans includes liability coverage up to $750,000 from Liberty Mutual.

The differences in the five plans mainly pertain to:

  • Your deductible
  • How much of the trip price you earn
  • Whether you get a daily income reimbursement while repairing your car

Keep in mind that Turo reimburses you for repair costs up to $125,000 (after you satisfy your deductible).

Let’s look at each plan in more detail:

60 plan:

  • Your trip price: 60%
  • Liability coverage: Up to $750,000
  • Turo’s damage responsibility: 100%
  • Your deductible: $0
  • Exterior wear and tear reimbursement included
  • Up to 10 days of replacement vehicle reimbursement ($50/day) or a loss of hosting income payout

70 plan:

  • Your trip price: 70%
  • Liability coverage: Up to $750,000
  • Turo’s damage responsibility: 100%
  • Your deductible: $250
  • Up to 10 days of replacement vehicle reimbursement ($30/day)
  • Exterior wear and tear reimbursement not included
  • Loss of hosting income payout not included

75 plan:

  • Your trip price: 75%
  • Liability coverage: Up to $750,000
  • Turo’s damage responsibility: 100%
  • Your deductible: $750
  • Replacement vehicle reimbursement not included
  • Exterior wear and tear reimbursement not included
  • Loss of hosting income payout not included

80 plan:

  • Your trip price: 80%
  • Liability coverage: Up to $750,000
  • Turo’s damage responsibility: 100%
  • Your deductible: $1,625
  • Replacement vehicle reimbursement not included
  • Exterior wear and tear reimbursement not included
  • Loss of hosting income payout not included

85 plan:

  • Your trip price: 85%
  • Liability coverage: Up to $750,000
  • Turo’s damage responsibility: 100%
  • Your deductible: $2,500
  • Replacement vehicle reimbursement not included
  • Exterior wear and tear reimbursement not included
  • Loss of hosting income payout not included

Turo Insurance Costs for Hosts

You don’t pay anything upfront when choosing a Turo insurance plan.

Instead, the amount you earn per trip gets reduced.

On the 60 plan, for example, the 40% you don’t earn from the trip price goes to Turo to cover:

  • Turo’s marketing costs to promote the platform for you and other hosts
  • Platform operational costs
  • Turo’s financial responsibility if they pay out for your car’s damages

Turo Insurance for Renters

You have the option of going without Turo insurance when booking a car rental, or you can choose from three different plans offered by Turo:

  • Premier plan
  • Standard plan
  • Minimum plan

You should check with your personal insurance company to find out whether they’ll protect you when driving a Turo car.

If they exclude Turo trips, then you need to select a Turo insurance plan or risk financial harm if you cause an accident.

Think about the ramifications if you cause tens or hundreds of thousands of dollars in physical damage or severely injure someone.

None of us like to think of the worst-case scenario: someone dies in the accident.

How Turo Insurance Works for Renters

Through Turo’s insurance partner, Liberty Mutual, you’ll have up to $750,000 in liability coverage (depends on the plan you choose).

You obtain a contract between Turo and you that protects you when physical damage occurs to the host’s vehicle.

However, it doesn’t protect against mechanical or interior damage caused by you.

For additional costs, you can obtain eligibility for roadside assistance that Turo provides.

Turo Insurance Options for Renters

Choose from one of these three insurance plans:

Premier plan:

  • Your cost: 100% of the trip price ($14/day minimum charge)
  • Liability protection: Up to $750,000 (This is secondary coverage if you have personal coverage)
  • Your physical damage responsibility (to host’s car): $0 (takes primary position over personal insurance)
  • Interior or mechanical damage protection: $0
  • Excluded: Drivers under 21 years of age or vehicles valued over $25,000

Standard plan:

  • Your cost: 40% of the trip price ($12/day minimum charge)
  • Liability protection: Based on which state the host registers their vehicle with. You’re covered for the minimum liability coverage required by that state (This is secondary coverage if you have personal coverage)
  • Your physical damage responsibility (to host’s car): $500 maximum (takes primary position over personal insurance)
  • Interior or mechanical damage protection: $0

Minimum plan:

  • Your cost: 15% of the trip price when the total trip costs more than $250 ($10/day minimum charge)
  • Your cost: 25% of the trip price when the total trip costs less than $250 ($10/day minimum charge)
  • Liability protection: Based on which state the host registers their vehicle with. You’re covered for the minimum liability coverage required by that state (This is secondary coverage if you have personal coverage)
  • Your physical damage responsibility (to host’s car): $3,000 maximum (takes primary position over personal insurance)
  • Interior or mechanical damage protection: $0

Turo Insurance Costs for Guests

The trip price determines the cost of Turo guest insurance.

The Premier charges 100% of your trip price.

For example, you’ll pay $100 for the Premier plan insurance coverage if you rent a car for one day at $100.

Turo charges a minimum of $14/day on this plan.

The Standard plan charges 40% of your trip price.

For example, you’ll pay $40 for the Standard plan insurance coverage if you rent a car for one day at $100.

Turo charges a minimum of $12/day on this plan.

The Minimum plan has two pricing tiers.

It charges 15% of your trip price if the trip price equals more than $250.

For example, you’ll pay $45 for the Minimum plan insurance coverage if you rent a car for a total trip price of $300.

If your trip price is under $250, then your cost is 25% of the trip price.

Turo charges a minimum of $10/day on both of these Minimum plan tiers.

Additionally, if you’re under 25 years old, you will need to pay an additional fee called a Turo Young Driver Fee.

Like standard rental car companies, it’s more expensive to have less experienced drivers on the road, hence the additional coverage.

How Turo Insurance Works in an Accident

Report the accident to the Turo emergency line at (415) 965-4525.

They’ll start the claims process, assign an agent to your claim, and then your agent will guide you through the process.

From there, it works just like any other accident claim you’ve most likely experienced in the past.

Alternative Insurance Option: Commercial Car Insurance

Hosts can decline insurance coverage provided by Turo and operate as commercial hosts.

This commercial insurance option is typically available only to rental car companies because most insurance companies exclude car rentals.

If you’re a rental car company operating on the Turo platform, then you’re required to discuss your own car insurance options with your guest before starting the trip.

Frequently Asked Questions

Let’s review five FAQs often asked about Turo and its insurance options.

Does Personal Car Insurance Cover Turo?

It depends on your specific auto insurance provider.

Some car insurance companies will cover trips taken through a car sharing app.

Others won’t cover you in those situations.

The only way to know for sure is to contact your company and ask them.

Does Credit Card Coverage Cover Turo Rentals?

You have low odds of getting the insurance coverage you need from credit card coverage.

Suppose you do discover that your credit card coverage provides property damage.

In that case, it’s highly unlikely that they’ll give you the liability coverage needed to protect you when causing damage or injuries to any third party during an accident.

What Insurance Companies Cover Turo?

Liberty Mutual is Turo’s insurance partner. It’s unlikely that your personal carrier covers Turo trips because most insurance companies exclude rental cars and car sharing apps from their responsibility.

When using Turo as a guest or host, your best option is to select one of the Turo options discussed above.

Does Turo Require a Deposit?

Turo doesn’t typically charge a deposit unless you’re a guest between 25-29 and book Deluxe Class trips.

Turo then asks for a $750 deposit. Guests of any age booking Super Deluxe trips also pay a $750 deposit.

Turo reserves the right to charge a $200 deposit if their security system flags your trip for any reason.

What Happens If Your Car Gets Stolen on Turo?

Contact Turo customer service immediately and start the claims process.

They’ll guide you into filing a police report so that the process for recovering your vehicle begins.

If you never find your stolen car, remember that you’re covered up to $750,000 for theft with your Turo insurance plan.

Wrapping Up

You now know everything you need to know about Turo insurance and what to do as a host or guest.

The bottom line?

You must protect your interests when renting a car out to guests or acting as a guest on the Turo platform.

The first action you should take is to contact your personal auto insurance provider and ask them how they treat a peer car sharing app like Turo.

If your personal insurance company doesn’t protect you, your second action is to select the best Turo insurance option before starting any trip.

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