Turo is a platform where car owners can rent out their personal vehicles, akin to Airbnb but for cars. As such, Turo car insurance is not a conventional choice for those seeking standard car insurance. When using Turo — whether as a car owner (host) or renter (guest) — personal auto insurance policies and credit card coverage for rental cars typically do not apply. Owners may have coverage under commercial auto policies, while renters should check if their insurance includes peer-to-peer rental coverage.
Our Turo insurance review reveals that Turo protection plans provide various levels of coverage during the rental period. These plans might be beneficial for hosts seeking extra security and guests looking to limit potential out-of-pocket expenses in case of vehicle damage. Turo offers limited forms of insurance for its users — but not the broader public. Meaning, if you are shopping around for the best car insurance, it’s advisable to understand how Turo’s insurance options align with your requirements before participating in the service.
How does Turo car insurance work for hosts?
Turo hosts can choose from five Turo car insurance plans, all of which come with $750,000 in third-party liability coverage provided by Travelers. In addition, drivers can access 24/7 roadside assistance. Since Turo car insurance is created explicitly for the Turo car-sharing app, third-party customer service and financial strength ratings are not available.
The cost for each Turo plan is covered by a portion of the money Turo’s rental drivers pay to rent the host’s car. The deductible that the host pays in the event of a claim is tied to the percentage of the trip cost the host retains as profit. The greater the percentage, the higher the deductible the host will pay.
Available Turo car protection plans for hosts include:
- 60 Plan: This is Turo’s most inclusive car insurance. With the 60 Plan, hosts earn 60 percent of the trip price and there is no deductible for claims. The plan fully reimburses the host for any exterior wear and tear, and includes either loss of hosting income for the time it takes to complete repairs or $50 per day for replacement vehicle reimbursement.
- 75 Plan: Hosts who choose the 75 Plan get 75 percent of the trip price. In this case, hosts assume a $250 deductible for physical damage, but the plan does not cover exterior wear and tear. Hosts can get $30 per day for a replacement vehicle if their car is damaged and needs repairs. The 75 Plan does not include any income loss coverage.
- 80 Plan: Turo hosts get 80 percent of the trip price with the 80 Plan. This plan comes with a $750 deductible for physical damage and does not include any coverage for exterior wear and tear, replacement vehicle reimbursement or loss of income.
- 85 Plan: With the 85 Plan, hosts get to keep 85 percent of the trip price but take on a $1,625 deductible. This plan extends no coverage for exterior wear and tear, replacement vehicles or loss of income.
- 90 Plan: The 90 Plan allows hosts to keep 90 percent of the trip price. The deductible for this plan is $2,500 and excludes coverage for exterior wear and tear, replacement vehicles or loss of income.
How does Turo car insurance work for guests?
Guests who rent a car through Turo’s platform can participate in separate vehicle protection plans. All provide the same $750,000 liability coverage through Travelers but vary in the out-of-pocket expenses a guest is responsible for if the car is damaged during their booking period. Keep in mind that only physical damage is covered with these plans, while mechanical and interior damage is not.
Available Turo protection plans for guests include:
- Premier plan: Under this plan, guests won’t have a deductible for physical damage to their rented car. It costs 65 to 100 percent of the trip price, with a minimum charge of $14 per day. Additionally, it may not be an option based on trip details, vehicle type or other factors. For trips in New York, the liability coverage increases from $750,000 to $1,250,000.
- Standard plan: Guests who choose the Standard plan have a $500 deductible for physical damage to the host’s vehicle. The cost is 40 percent of the trip price, with a minimum charge of $12 per day.
- Minimum plan: A $3,000 deductible will apply for physical damage to a host’s vehicle. The cost varies depending on the trip price. For trips over $250, the cost will be 15 percent of the trip price, while trips below $250 will cost 25 percent of the trip price. Both have a minimum charge of $10 per day.
- Decline physical damage protection: With this plan, any physical, mechanical or interior damage will be the guest’s financial responsibility. Third-party liability insurance will still be provided up to the state’s minimum limit of coverage. However, depending on the state, this may not be an option for guests, in which case they will need to select one of the plan options above.
If you’re renting a car through Turo, it may be essential to understand how Turo protection plans work as a guest. This may help you decide which plan is best for your needs and budget.
