Turo is a peer-to-peer carsharing platform that allows people to rent a car with $10-30 cheaper daily rates. Whether you are traveling with your family, or need a car because yours is in the shop, Turo is an easy and affordable option. However, you don’t want to miss out on getting Turo insurance for your trip.
The best Turo insurance depends on what car you are renting. If you are renting a luxury car, it may be wise to get a protection plan that has a lower deductible. Turo uses a separate company for their insurance called Travelers insurance. After working with them on multiple claims, I have learned what insurance protection plans are the best.
This article will guide you through everything you should know about Turo insurance if you are a new or veteran host, or want to prepare for your next Turo trip. I will also show you how many of my own previous renters chose an insurance plan or not.
Disclosure: Some of the links in this article may be affiliate links, which can provide compensation to me at no cost to you if you make a purchase.
What Is Turo Insurance?
Turo insurance is different than your regular auto insurance. Instead of paying a monthly premium every month regardless of how much you drive your vehicle, Turo insurance is trip-based and is an option offered to the host and the renter. Turo does not offer in-house Insurance meaning there’s no “Turo Insurance Company” but instead uses a widely known travel insurer, Travelers Excess and Surplus Lines Company, or “Travelers.”
You don’t need to work with them since Turo has tightly integrated their offers into their own platform. Turo, with their partner Travelers, gives you several different options whether you are a renter or a host.
Turo Insurance For Renters
Turo insurance for renters widely depends on what car you are renting. If you booked a 2012 Toyota Corolla, you can probably get away with the minimum plan. However, if you book a supercar or other expensive cars on Turo it is wise to get a plan with higher coverage.
More than once I have filed a claim because a guest damaged my Vanderhall. Although it was minor, because of the insurance the renter and I chose it didn’t cost either of us anything. Turo literally sent me a deposit to cover the damage. What insurance and protection plans are available to renters?
Premier Plan
Coverage: The Premiere plan is comparable to the 60 plan for hosts. The guest will not be responsible for any deductible for any physical damage to the vehicle. Interior and mechanical damage isn’t covered, but regardless of how much physical damage occurs whether it’s from a fender bender or totaling the car, the renter will not be financially obligated to pay any of the damage costs.
According to Turo, some guests may not be able to select this plan if they are between the age of 18-20 and other trip factors.
Price: 65-100% of the trip price with a minimum price of $14 per day.
I’ve learned that price can fluctuate based on the value of the car you are renting along with your own driving history.
One guest that damaged one of our wheels had this plan and paid a $0 deductible that would have otherwise paid for the full amount.
Standard
Coverage: Guests are liable to pay for physical damage, administrative fees, and appraisal fees up to $500.
Price: 40% of the trip price with a minimum price of $12 per day.
Minimum
If you want to live on the edge, this may be the plan for you.
Coverage: Guests are liable to pay for physical damage, administrative fees, and appraisal fees up to $3,000.
Price: 1) 15% of the trip price if the trip cost more than $250 with a minimum charge of $10 per day. 2) 25% of the trip price if the trip cost less than $250 with a minimum charge of $10 per day.
Declining Coverage
Coverage: Guests are liable to pay for physical damage, administrative fees, and appraisal fees up to the entire cash value of the car.
Price: $0
You will be responsible and liable for all costs of any damage that happens during your rental.
Do most people get insurance on Turo?
According to my recent guests that booked my vehicle on Turo, 65% of people selected insurance when renting on Turo.
Out of the past 20 renters I have had, here are the results of what insurance protection plans they chose:
| Protection Plans For Renters | Premier | Standard | Minimum | No Plan |
| Number Of Renters That Chose Each Plan* | 1 | 5 | 7 | 7 |
These results are quite surprising to me as I would have expected more people to get Standard and Premier plans. It also surprises me that 7/20 opted to decline all coverage.
From the two claims that have happened with my vehicle, one of the guests had a Premier protection plan while the other one selected Minimum. As a result, one paid for the entire repair while the other paid $0.
If you are renting a nicer car or are planning on going offroading or camping, it would be wise to select some good insurance for your trip. Fortunately, the hosts also have several protection plans to choose from.
Turo Insurance For Hosts
Turo offers several insurance plans, or protection plans, for hosts. The 90 plan, 85 plan, 80 plan, 75 plan, and 60 plan. Let’s look at them more deeply:
| Host Insurance Plan | 90 | 85 | 80 | 75 | 60 |
| Deductible | $2,500 | $1,625 | $750 | $250 | $0 |
| Liability Insurance Amount (From Travelers) | $750,000 | $750,000 | $750,000 | $750,000 | $750,000 |
| Reimbursement Amount For Replacement Vehicle | Not available | Not available | Not available | $30 per day for 10 days max. If the car is a total loss, $300 will be paid. | $50 per day for 10 days max. If the car is a total loss, $500 will be paid. |
| Exterior Wear and Tear (3″ in diameter or less) | Not available | Not available | Not available | Not available | Available |
| Host Trip Earnings | 90% | 85% | 80% | 75% | 60% |
| Dallin’s Recommendation Based On Car Value | $10,000 or less | $20,000 or less | $30,000 or less | Brand new car or $45,000 or greater | Brand new car or $60,000 or greater |
It’s also important to know what is more important for you. Buying a brand new car, regardless of its value, can be scary to let others start driving. You may want to start out with a lower deductible plan such as the 60 plan so you can cover wear and tear and dings and dents.
For example, we bought a brand new vehicle that cost $36,000+ and so far I have only used the Turo 60 plan. So far, we have filed two claims that were both from curb rash on the rims. Turo paid me $137.90 for the first curb rash and $470.68 for the second. The first curb rash was just a scratch on the rim, but the second one was more severe. If we had a different plan that required a deductible, we may have missed out on the payout.
If the repair cost more than the reimbursement from Turo, they will send you more money as long as the mechanic fills out the proper form that is then submitted to Turo.
It’s also important to consider if you or someone close to you is a mechanic, it may be wise to choose a higher deductible plan to save some money and fix things yourself. For example, I “fixed” the curb rash on my wheels by sanding them down lightly and painting them. It doesn’t look quite as good as professionally getting them done, but I’m sure more curb rash will happen in the future. Also, I pocked an extra $608.58 between the two claims!
Keep in mind that the more protection Turo provides, the more they take from each trip. If you rent your vehicle out for $100/day, Turo can keep as much as $40 per day or as little as $10 a day. This can really make a difference in your earnings.
Now that we’ve established that Turo offers insurance for hosts but does my personal car insurance provide any coverage?
Does My Personal Car Insurance Work With Turo?
It’s important to know that personal car insurance usually does not cover the person driving or the vehicle you are renting. Of course, it would be good to ask your insurance agent, but most auto insurance companies will not cover any damage done when a renter drives your car.
Commercial insurance, on the other hand, is another option instead of using Turo’s insurance. Very few Turo hosts use commercial insurance, but using it may be a good option if you have a large fleet of vehicles.
I pay for personal auto insurance to cover my Turo vehicle through State Farm when I drive it around town for non-Turo-related reasons. When it isn’t booked, I will sometimes drive it to work and back or run other errands. On the small occasion (knock on a lot of wood) that I was to get in a wreck, it would still be covered by my personal insurance. However, if you have a fleet of cars on Turo, personal insurance may not be worth it or needed.
Do You Need To Have Special Insurance To Be A Turo Host?
You do not need special insurance for any cars you host on Turo but will need personal insurance to list your vehicle on Turo. Personal insurance, according to Turo, is required in the event a guest gets pulled over. You will most likely need personal insurance to obey your state (United States) law or within your country.
In addition to having proof of insurance available to the guest at all times, you are also required to have your up-to-date registration and a copy of the Turo incident information card. Getting an organizer will be very handy for guests. But unfortunately, accidents do happen.
What happens if someone crashes your car on Turo?
In the unfortunate and unlikely event that your guest crashes your Turo car, there’s a simple solution for what they should do. Guests should pull out the Turo incident information card that hosts are required to have in the car, and call the number on the card: 1-855-651-1603. Turo is available 24/7 for incidents that happen.
Renters should also call this number if anything else happens to them while on their drive such as a flat tire, engine problems, etc. It would be unlucky for your tire to go flat while renting, but it happens and it would be the renter’s responsibility to fix it. Hopefully, the guest got a good protection plan.
Dallin’s Thoughts
Turo can be a great source of passive income for hosts and affordable rental cars for guests. As a host on Turo, I have some tips for hosts and guests:
Hosts: unless you are a mechanic, it’s a safe bet to choose a protection plan that has a lower deductible in case there are any claims from guests.
Guests: If you are worried about hosts filing claims against you, here are some tips to spot good hosts before booking.
The best Turo insurance depends largely on what car you are renting or hosting. The best Turo insurance for a 2012 Toyota Corolla is probably not the best for a Tesla Model X. Luckily, Turo makes it very easy to select insurance.
Now hopefully none of your guests end up like this car I saw the other day.
Click here to read more about Turo’s insurance and protection policies in the United States.
