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Compare car insurance for Turo hosts

Get up to $1 million in liability coverage through Liberty Mutual.

Opt for Turo’s coverage for liability, physical damage and even vehicle replacement or income loss. But if you’re willing to shoulder a higher deductible or get your own commercial policy, you could take home more profits.

Does Turo provide any insurance?

Turo offers two car insurance policies for Turo car owners, or hosts, as the platform calls owners who rent out their cars to other drivers.

  1. Liability policy up to $1 million and through its partner Liberty Mutual to supplement your own policy when you’re renting out your car. You’ll also get comprehensive coverage that matches what you have on your personal auto policy.
  2. Mileage-based insurance through its other partner, Metromile, so owners only pay for the miles they put on their own car. This fractional insurance is designed to give drivers more flexibility with their car.

Or you can decline Turo insurance altogether and offer commercial rental insurance to drivers. Commercial hosts are entirely responsible during an accident and are required to offer insurance plans for renters. These hosts only pay Turo 10% of each rental for using the platform in exchange for taking on more of the risk.

What coverage do I get with Turo?

To get coverage with Liberty Mutual, you can choose between different levels of coverage: Basic, Standard or Premium, which comes out of your profits.

Under the Basic plan, you’ll pay Turo 15% of each rental. Coverage includes:

  • Liability. Up to $1 million.
  • Physical damage. Up to $125,000 with a deductible up to $3,000. Turo pays 20% until costs reach $3,750.

With Standard coverage, you’ll pay 25% of each rental with coverage for:

  • Liability. Up to $1 million.
  • Physical damage. Up to $125,000 with no deductible.
  • Replacement vehicle. Up to $30 per day for 10 days.

The Premium plan costs 35% of each rental, and hosts receive:

  • Liability. Up to $1 million.
  • Physical damage. Up to $125,000 with no deductible.
  • Replacement vehicle. Up to $30 per day for 10 days.
  • Exterior wear and tear. Applies to dings, dents or cracks that are three inches in diameter or less.
  • Loss of Turo income. Reimburses you for your average income for the last 60 days.

Important note: The more insurance responsibility you take on, the higher income you’ll receive from each rental. The company keeps a percentage of the rental cost as payment for insurance, and the amount depends on which policy you choose.

In addition, coverage purchased with Turo applies during the renter’s trip but also during the delivery period. Delivery is the period in which the host delivers the car to the renter.

Ask an expert: How does usage-based insurance work with Turo?

Jeff Brigalia

Jeff Brigalia
Chief Insurance Officer at Metromile

Fractional insurance makes car ownership more affordable by working to prevent excess coverage.

We partnered with Turo, so their car-sharing hosts won’t have to pay for car insurance if they aren’t driving their cars.

What kind of car insurance do I need to host for Turo?

To rent out your car on Turo’s platform, you need to purchase a Turo insurance plan or your own commercial rental policy.

Coverage you may need:

  • Liability. Required by state during delivery and rental periods, and personal coverage.
  • Collision. Coverage for physical damage during rentals.
  • Comprehensive. Purchased coverage on your personal policy.
  • Uninsured/underinsured motorist. An add-on to a commercial policy, Turo only provides this coverage if it’s required by state.
  • Rental reimbursement. Pays for a vehicle when yours is in the shop.
  • Income loss. Applies only to income lost from potential Turo rides.
  • Maintenance plan. Covers wear and tear on your vehicle.

Car insurance for Turo hosts

Coverage typeType of planCovered by TuroAdd to your personal policy
Liability – during delivery and rentalBasic, Standard and PremiumUp to $1 millionNot needed
Collision (physical damage)BasicUp to $125,000, Deductible: up to $3,000Consider additional protection
Collision (physical damage)Standard or PremiumUp to $125,000, no deductibleNot needed
ComprehensiveDuring rentalUp to coverage amount on personal auto policyRecommended
Uninsured/underinsured motorist Basic, Standard and premium — when required by stateUp to state requirementRecommended
Rental reimbursementStandard or PremiumUp to $30 a day for 10 daysOptional
Loss of income on TuroPremiumUp to average daily earnings for past 60 days, conditions applyOptional
Wear and tearPremiumUp to repair amount for dents, dings and scratches under 3 inchesOptional
Liability — off the clockN/ANot coveredRequired by state

Commercial car insurance alternatives to Turo car insurance

Narrow down top-rated lenders by financial rating, available states and more to find the best for your budget and financial goals. Select Compare for up to four products to see their benefits side by side.

Name Product AM Best financial rating Available states
Liberty Mutual commercial car insurance
Liberty Mutual commercial car insurance
All 50 states
Take advantage of telematics to monitor and improve employees' driving and save on insurance premiums.

How much does car insurance cost for Turo hosts?

The price of Turo insurance depends on the insurance policy you choose and is deducted from your rental profit. The more insurance responsibility you take on, the less you pay Turo for insurance. For example, the Premium plan provides extra coverage for income loss and a rental car, but costs more than the Basic policy.

  • Basic plan costs 15% of each rental.
  • Standard plan costs 25% of each rental
  • Premium plan costs 35% of each rental

Forgoing Turo’s insurance means you’ll need to provide commercial rental insurance for your guests to purchase. The annual average cost for commercial auto insurance ranges from $1,200 to $2,400 per vehicle. And Turo still keeps 10% of the rental cost for using its service.

Your total rate is affected by your Turo coverage and any additional coverage you choose. However, you may save money when insuring a fleet of rental vehicles.

Can I host for Turo with a car I’m leasing?

Yes, Turo allows you to host with a leased car as long as your lease contract allows using it on a car-sharing platform. To prevent delays after a claim, confirm these details with the company leasing the vehicle before listing the car with Turo.

Can I host for Turo with someone else’s car?

Turo doesn’t specify that you must own the car you’re renting out. However, you should ensure that the vehicle meets all Turo guidelines, including insurance requirements.

To avoid confusion, ask to be added as an insured driver on the owner’s policy. However, this won’t ensure your eligibility to use the car on Turo’s platform — contact Turo support to explain your situation.

What’s the Turo Seed Host program?

Turo announced that it’s partnering with Kiva to help crowdfund up to $1 million to help underserved Black entrepreneurs purchase cars. Drivers can get up to $7,500 crowdfunded from Kiva with a match up to $7,500 from Turo as of December 2020. Apply with Turo to find out how to qualify. If you can’t qualify for the program, consider other ways to finance a rideshare car or drive rideshare to repay your loan.

How do I make a claim after a renter gets into an accident with Turo?

To qualify for Turo coverage, you must make a claim within 24 hours of the end of the trip. For damage claims, it must be within 24 hours or as soon as the damage comes to your attention.

File a claim by:

  1. Gather details, such as the renter’s insurance information, cause of accident and photos of the damage.
  2. Enter these details on the Resolutions section of Turo’s website within 24 hours of the trip.
  3. Connect with a Turo claims administrator, who determines damage eligibility, appraises the damage, usually through the app, and sets up necessary repairs.
  4. Both the guest and host pay any amounts they’re responsible for.

Settling the claim with Turo takes an average of five business days, but each case is different. You can choose to bypass Turo and settle the claim directly with the renter.

If you choose the Standard or Premium insurance plan, you could receive reimbursement for income loss or a replacement vehicle.

Case study: Jenny’s Turo car is in an accident

Let’s say Jenny is a new host whose long-term renter was in an accident while using her Turo car. Repairs for the other driver’s vehicle are estimated to cost $800, while moderate repairs to Jenny’s vehicle cost $1,200. Luckily, no one was injured in the accident.

Each Turo plan provides liability coverage high enough to pay for the damage to the other car. However, Jenny’s out-of-pocket costs for her car depend on the plan she chose.

Under the Basic plan, Turo pays 20% of the costs or $240, leaving Jenny responsible for $960. The Standard plan leaves Jenny with no out-of-pocket costs and a replacement vehicle.

If Jenny paid for the Premium plan, she’s left with no costs, a replacement vehicle and $100 for lost income. Also, she could get repairs for additional scratches on her car, which would normally be considered wear and tear.

Bottom line

Turo offers insurance to cover you when you’re renting out your cars. However, you may need a separate commercial policy if you’d prefer to be a commercial host, taking home more of a profit.

Compare commercial car insurance options that best fill your needs.

Frequently asked questions about insurance for Turo hosts

Is it legal for me to share my car on Turo?

There’s no law against carsharing in any US state. However, your insurance policy may not cover your car. Turo offers its own protection plans to bridge the gaps in this situation. However, you can’t use the Turo platform in New York State for insurance purposes.[/fin_accordion]

Will my insurance be affected if a guest is in an accident?

In general, your personal insurance should not be affected by an accident with Turo since it’s a separate policy. However, in some states where liability, uninsured/underinsured motorist or personal injury protection follows the vehicle, not the driver, your personal policy may be implicated. [/fin_accordion]

What happens if my repair shop finds additional damage after I receive an appraisal from Turo?

The repair shop needs to file a supplement with Turo either online or by calling 312-906-7462 within 45 days after the first payment.

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