Turo car insurance review: Car-share protection for hosts

Pros

• Multiple host protection plans
• Cost deducted from earnings
• All policies include $750,000 third-party liability insurance

Cons

• Personal insurance is still required
• High-value cars may have inadequate coverage
• Loss of income/replacement cost not covered under most plans
• Hosts must cover the upfront cost of repairs

Turo is a peer-to-peer vehicle renting company that is an alternative to big-name brands like Enterprise, Avis and Hertz. Car owners — called hosts on the platform — rent out their vehicles to guests, travelers and locals who need transportation.

Cars on Turo range from economy hatchbacks to luxury supercars. For hosts, it offers a source of supplemental income.

But any time your vehicle is on the road, there’s a chance it could be damaged or involved in an accident. To provide some protection, Turo partnered with Travelers to offer third-party liability protection. You can also choose one of Turo’s protection plans for additional coverage.

What you need to know about Turo car Insurance

Turo isn’t an insurance company, and its host protection plans aren’t a form of insurance. Through its partnership with Travelers, a leading insurance company, all host protection plans in the U.S. come with a $750,000 third-party liability policy.

Hosts will likely need additional protection to cover their vehicle, so there are key things you need to know about Turo car insurance and protection plans.

Hosts can choose from 5 plans

All hosts must choose a protection plan listed by Turo. These plans act as a contract for physical damage reimbursement and are different from car insurance.

Each plan is paid for from the host’s take — the percentage of the trip price you earn from each Turo rental. Which plan you choose affects what percentage of the trip price you keep. There are five plans to choose from, and you can learn about the details of each on Turo’s site.

Host coverage is separate from guest policies

The Turo protection plans differ from the coverage available to the drivers renting vehicles. Guests renting a car can choose from one of three plans, in which coverage is secondary to any personal insurance they may have:

• Premier Plan — This plan includes state-minimum third-party liability coverage, and the guest’s responsibility for physical damages to the host’s vehicle is limited.
• Standard Plan — This plan includes state-minimum liability insurance and a physical damage contract that limits the guest’s responsibility for physical damages to the host’s vehicle.
• Minimum Plan — The minimum plan covers state-minimum liability insurance in the state where the guest is renting.

None of the guest plans include a limit of responsibility for mechanical or interior damage. The guest is completely responsible for any mechanical or interior damages that occur while renting the vehicle.

You’ll still need personal insurance

All hosts will need personal insurance to list a car on Turo. The Turo protection plans — and the third-party liability coverage provided by Travelers — is only in effect during trips booked on Turo.

The vehicle isn’t covered or insured when it’s not being shared on Turo, so you’ll need your own personal insurance policy that meets your state’s minimum insurance requirements.

Hosts must leave a copy of their personal insurance card in the vehicle at all times, and they must leave directions with the guest so they know where to find it.

Most plans don’t cover loss of income

Out of the five host protection plans, only one plan includes reimbursement for loss of income. With most of the plans, you won’t have any coverage for earnings you miss out on because of repairs or damages.

A closer look at Turo car insurance

Here are some additional details you should know about Turo.

• Vehicle repairs — If a guest is in an accident while renting your car, you must report the damages within 24 hours of the end of the guest’s trip to be eligible for reimbursement. You must take photos to document the vehicle’s condition at the start and end of each trip. You can upload the photos in the Turo app.
• Reimbursement — Because Turo’s protection plans aren’t insurance, they work differently from a typical auto policy. As the host, you pay for all the repairs upfront. After the work is complete, you submit photos, diagnostic reports and copies of your receipts to Turo and wait for reimbursement. All reimbursements are made via Visa Debit or check issued through HyperWallet.
• Trackers — Vehicles valued at $125,000 or more must have proof of an active original equipment manufacturer tracker. Without an active tracker, you may be responsible for up to 20% of damages above your protection plan deductible.

How to get coverage with Turo

You can choose a protection plan and get third-party liability coverage when you list your car for rent on Turo’s platform.

To list your vehicle, you’ll need details about your car’s make and model, license plate, vehicle identification number, driver’s license, and rental information, such as pickup locations and mileage limitations. You’ll also be asked to provide photos of your vehicle.

The site will prompt you to select a protection plan and payout option and you’ll have to consent to its safety and quality standards. Once you submit your listing, Turo will review it before it goes live. The insurance and protection plan go into effect whenever a guest books your rental.

Take note: Not all vehicles are eligible for Turo, so check the site to see if your vehicle qualifies.

Not sure if Turo car insurance is right for you? Consider these alternatives.

Turo’s protection plans, and liability coverage are only in effect when a guest is renting the vehicle. You’ll need personal coverage to protect your vehicle at other times. To ensure your car is protected, consider these other options.

• State Farm offers collision, comprehensive and liability policies for various cars, including sports cars, classic vehicles and commercial vehicles.
• Progressive allows you to get a quote and purchase auto insurance online.