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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.
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.
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.
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:
With Standard coverage, you’ll pay 25% of each rental with coverage for:
The Premium plan costs 35% of each rental, and hosts receive:
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.
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.
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:
| Coverage type | Type of plan | Covered by Turo | Add to your personal policy |
|---|---|---|---|
| Liability – during delivery and rental | Basic, Standard and Premium | Up to $1 million | Not needed |
| Collision (physical damage) | Basic | Up to $125,000, Deductible: up to $3,000 | Consider additional protection |
| Collision (physical damage) | Standard or Premium | Up to $125,000, no deductible | Not needed |
| Comprehensive | During rental | Up to coverage amount on personal auto policy | Recommended |
| Uninsured/underinsured motorist | Basic, Standard and premium — when required by state | Up to state requirement | Recommended |
| Rental reimbursement | Standard or Premium | Up to $30 a day for 10 days | Optional |
| Loss of income on Turo | Premium | Up to average daily earnings for past 60 days, conditions apply | Optional |
| Wear and tear | Premium | Up to repair amount for dents, dings and scratches under 3 inches | Optional |
| Liability — off the clock | N/A | Not covered | Required by state |
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.
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.
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.
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.
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 pay off your car loan.
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:
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.
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.
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.
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