Each one of your cars could easily earn you more than $1,000 per month in passive income by making money on Turo.
Here I will show you how to make the MOST money on the Turo platform so you don’t lose money through the cracks!
There are several things I wished I had known before starting from daily price, what liability insurance to choose, buying a new or used car for Turo, Turo Facebook group, charging guests for gas and late fees, achieving all-star host, extras, and so much more!
Daily Price
The daily price is what you charge a guest per day and the trip price is the total price for the entire rental period.
Knowing what to price your car on Turo can be tricky, but it’s not hard.
You obviously want to get paid the most possible on every single trip.
So what’s the best way to do that?
In my opinion, automatic pricing is conservative and does a good job.
Turo allows you to choose your base price and the highest price you want Turo to choose from.
Once enabled, Turo will adjust your price according to vehicle model type, trip history, and supply and demand of your location.
Pretty nifty!
Here is a snapshot of a month I just opened up (hence there are no bookings yet).
You can see that Turo automatically raised the price the closer to the holidays as I’m sure demand will increase as travel increases.
It will be interesting to see how it plays out.
I also run several Airbnb superhost properties which tend to book out up to a year in advance whereas Turo tends to have much more last-minute bookings.
If you aren’t happy with Turo’s automatic pricing, you can always manually adjust any daily rate.
Several other factors can affect how much money ends up in your bank account.
Making Money On Turo: Reimbursements & Fees
Reimbursements are another way to make money other than your daily price.
The green bar represents reimbursements and fees:
It may not seem like much, but every little bit counts.
Before each trip, I make sure my Turo car, the Vanderhall Venice, has a full tank along with pictures in the pre-trip to prove it.
Then, if the guest doesn’t fill it up all the way, you have 72 hours to go to the gas station and fill it up, add a picture of the receipt to the trip photos, and create an invoice that will be sent to the guest.
On top of the gas, Turo automatically adds in a $10 convenience fee that the guest will pay as well.
Make sure to keep the receipt from the gas station for tax purposes and also take a picture and add it to the trip photos for the guest to see.
If the guest complains, you can always have them reach out to Turo support or send them Turo’s terms of service for guest fees.
What Liability Insurance Do I Choose?
Turo provides multiple insurance options for hosts provided by Travelers.
It’s also important to note, that these insurance plans ONLY are in effect during the duration of your guest’s trip.
If you drive your vehicle personally, you will need personal insurance through Liberty Mutual, State Farm, or whoever else you like to use.
So which one do I choose?
I am on the 60 plan, which provides the most coverage with zero deductible.
Since my Vanderhall is a unique vehicle and it was bought brand new, I want the most coverage on it especially at first when I was hesitant about car sharing with strangers.
However, if you’re also nervous about renting your car or sharing your car with others, Turo does take care of you.
Although the 60 plan has the most coverage on it for things like curb rash, Turo takes 15% more of a cut from your revenue compared to the 75 plan.
If your vehicle is booked out every day, that is a lot of extra money that could be in your pocket!
However, now that it has a few dings I may switch it to the 75 plan soon. Time will tell.
If you are wondering what to do, maybe this poll I saw recently asked online will help:
Most Turo hosts, according to the Turo talk Facebook group, use the 75 plan that still gives them a $250 deductible if there is damage.
What surprises me is the close second place is the 90 plan.
The 90 plan only comes with a $2,500 deductible and basically no other protection.
This plan is the best if you are planning on getting a few dings or scratches on your car on Turo or if you are mechanically inclined and can perform repairs yourself.
If you are not mechanically inclined, I would recommend at least the 75 plan.
The good news is that you can always change the plan whenever you want.
Picking out your insurance plan also depends on if you have a new or old car on Turo.
Should I Buy Or Use a New Car For Turo?
Want to earn the most money on Turo possible?
Buy used.
If you want to buy a new vehicle you’ve always wanted and have it pay for itself and maybe earn a little less income on the side?
Buy new.
That answer may seem surprising to you, but let me explain why before you go and spend $10k or even more.
My car payment for my Vanderhall Venice GT is $440 per month.
I also pay for personal insurance which, since it’s a brand-new vehicle, is more expensive than a used vehicle at $85 per month.
That leaves me with $525 in expenses regarding the new vehicle.
Now I knew this going into it because of how fun it is to drive a Vanderhall, I mostly just wanted to pay for itself.
Even though it’s not quite as expensive (or fast) as something like this. Maybe one day!
But imagine this.
You buy a used car that’s reliable.
Insurance is cheap or you don’t need any personal insurance at all because you never drive it.
It’s several years old so it’s hit its depreciation point and you either bought it with cash or got a very small loan to pay for it.
Buying used, combined with the proper market research, and doing your own oil changes and simple maintenance and repairs can earn the most income possible.
Looking for what car to buy for your Turo fleet? Check this out.
Buying a used car isn’t the only way to capitalize on the most revenue possible….
Extras, extras, read all about ’em!
Extras
Another essential item to remember when you list your car on Turo, regardless of make and model, is something called extras.
Extras are an area for the host to upsell and earn extra money on Turo.
Some common extras are:
- Prepaid fuel
- Unlimited mileage (distance)
- Child safety seat
- Pet fee
- GoPro
I have had guests use the luggage rack, prepaid fuel, and helmets quite frequently.
In order to get your guests to see your extras, I recommend mentioning them in the booking email!
Renters have until the booking time and date to add any extras to their trip so you’ll want to make sure they are aware before then!
Having extras will create a better experience for your guests and help you earn some extra money on Turo, and if you keep your renters happy, Turo will also reward you for it.
All-Star Host Status
Similar to how Airbnb has super host, Turo has all-star status.
It is something you should absolutely strive for.
Reasons to be an all-star host on Turo
- More visibility In search results
- Priority customer support
- $100 travel credit to use after one year of being an all-star status
- extra bookings and extra money
- When other bookings fall through, Turo customer support will look for all-star hosts first for available cars to book.
Although Turo is quite different than a traditional car rental company, any car you have listed on Turo could make extra money and is an excellent side hustle for anyone.
What happens if you have questions? (I’m sure you’ll have many, especially at first.)
Turo Talk Facebook Group
Turo has phenomenal customer support, but sometimes you want to hear tips and tricks from other experienced hosts.
Best GPS trackers or messages to say to your guests or maybe you have a question if it’s normal to not hear from your renter during their rental.
No matter what you are going through, Turo Talk is a fantastic place.
Is It Worth Having Your Cars On Turo?
In my honest opinion, and with no marketing affiliation with Turo personally, I think listing your car on Turo is a very fun and great way to earn passive income as a side hustle.
To start out, I would list your personal car and see how it goes.
If it goes well, then do some market research for your area and get ready to test out the waters!
Turo is one of many side hustles.
Have you seen the other ways to earn constant and passive income?
