Turo car insurance review

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Turo car insurance is part of the car-sharing program Turo, which is an alternative to traditional car rental. If you list your vehicle on the platform, you must purchase Turo car insurance, which covers your vehicle and the driver during the rental period. Turo offers several car insurance plans that vehicle owners can purchase to protect their vehicle during a trip.

What is Turo?

Turo is the largest peer-to-peer car-sharing company in the world, with a presence in the United States, the United Kingdom and Canada. Currently, Turo has more than 14 million customers and over 450,000 vehicles listed on its platform.

Turo is an alternative to the rental car counter. Anyone can list their personal vehicle on Turo for rent when it is not in use, assuming the car meets specific criteria. As a driver, you can book cars online or through Turo’s app based on your location, and you can choose which type of car to rent. Not only is Turo more convenient than regular car rental, but it is also often less expensive.

Turo car insurance

Turo offers its own car insurance policies underwritten by Liberty Mutual. If you list your vehicle for rent on Turo, you can choose between several insurance policies to cover the car while it is being rented. Rental drivers do not have the option to purchase Turo car insurance.

Drivers who rent their vehicle on Turo should have a personal car insurance policy. However, they still need to purchase separate coverage through Turo because most personal car insurance policies do not extend coverage to vehicles while being used as part of a business. Because Turo hosts make money on every rental, personal auto insurance policies typically don’t apply.

Types of coverage

Turo hosts can choose from five Turo car insurance plans, all of which come with $750,000 in third-party liability coverage provided by Liberty Mutual. In addition, drivers get access to 24/7 roadside assistance for every trip, regardless of the policy.

The cost for each plan is covered by a portion of the money Turo’s rental drivers pay to rent the host’s car. The greater the percentage of the trip cost the host keeps, the higher the deductible in the event of a covered loss and the lower the coverage. Here are the Turo car rental insurance plans available:

  • 60 Plan: With the 60 Plan, hosts earn 60% of the trip price and there is no deductible for claims. The plan fully reimburses the host for any exterior wear and tear, and it includes either loss of hosting income during repairs or $50 per day for a replacement vehicle.
  • 75 Plan: Hosts who choose the 75 Plan will get 75% of the trip price. There is a $250 deductible for physical damage, but the plan does not cover exterior wear and tear. Hosts can get $30 per day for a replacement vehicle if their car is damaged and needs repairs. The 75 Plan does not include any income loss coverage.
  • 80 Plan: Turo hosts get 80% of the trip price with the 80 Plan. It has a $750 deductible for physical damage and does not include any coverage for exterior wear and tear, replacement vehicles or loss of income.
  • 85 Plan: With the 85 Plan, hosts get to keep 85% of the trip price. This plan has a $1,625 deductible and includes no coverage for exterior wear and tear, replacement vehicles or loss of income.
  • 90 Plan: The 90 Plan allows hosts to keep 90% of the trip price. The deductible for this plan is $2,500, and it does not include any coverage for exterior wear and tear, replacement vehicles or loss of income.

Turo car insurance ratings, reviews, customer satisfaction and complaints

Turo does not underwrite its own car insurance policies, so no customer satisfaction or financial strength ratings are available specifically for Turo auto insurance. However, there are many reviews for Turo’s underwriter, Liberty Mutual.

Liberty Mutual has an ‘A’ rating from AM Best, which indicates excellent financial stability and shows that Liberty Mutual has enough money to repay policyholders after a claim and is not at risk of going out of business or declaring bankruptcy. The company also has an ‘A’ rating from S&P.

In J.D. Power’s most recent Auto Insurance Study, Liberty Mutual did not receive great ratings. The company was rated below-average in almost every region, except for Texas and the Southwest, including Arizona, New Mexico, Colorado, Utah and Nevada.

Before you consider using Turo, consider the company’s customer reviews, which seem to generally be positive. Consumer Affairs gives the company 3.9 out of 5 stars, while TrustPilot gives it 4.5 out of 5 stars. Like any ‘sharing’ service, your actual experience could vary, depending on your car host. Still, it seems like Turo might generally offer a decent experience for the value in most cases.

Reasons Turo car insurance is a good option

Turo car insurance is only available to Turo hosts who list their cars on its platform, and the only way you can decline it is to become a commercial host, which means you’ll have to carry your own commercial car insurance. So, unlike most car insurance policies, Turo car insurance is not really optional if you decide to become a Turo host.

Remember that your personal auto insurance policy will not cover your vehicle while it is rented through Turo, which is why the company requires its hosts to purchase the car insurance coverage it offers. It also recommends that you inform the car insurance company that writes your standard auto policy that you rent your car out through Turo to avoid any issues. Liberty Mutual, the underwriter for Turo’s policies, is one of the top insurance companies in the U.S. by market share, and its Turo policies offer generous liability coverage.

In addition, the Turo protection plan you choose is directly related to the amount of money you can make on each rental. Turo’s car insurance plans are flexible, and you can select a plan that works for you based on the amount of risk you are willing to take and how much you want to earn.

Frequently asked questions

How much is Turo insurance?

Unlike a personal car insurance policy, a Turo insurance policy does not have a premium. You choose a plan which correlates to the percentage of each trip’s price you want to keep as a host. The plans are tiered, so the more money you keep, the less coverage the plan will have. All except the highest tier also come with a deductible, you may want to factor in how much you can afford to pay if your car is damaged during a Turo rental.

How is Turo car insurance different from rideshare car insurance?

Turo car insurance and rideshare insurance are not the same things. Rideshare insurance is used to cover the vehicles of rideshare drivers while they are driving and carrying passengers for companies like Uber and Lyft. Turo car insurance covers the cars of Turo hosts while they are being driven by Turo renters.

How does Turo insurance work?

Turo car insurance works similarly to a personal auto insurance policy. If your vehicle is damaged during a rental, you can file a claim through Turo. Hosts have 24 hours after a trip ends to file the claim. Turo can manage the claim on behalf of the host, or the host and the guest can choose to resolve the claim independently. Once the claim is approved, the host will pay their deductible (if they have one) and receive compensation based on their plan.

Written by
Elizabeth Rivelli
Insurance Contributor
Elizabeth has two years of experience writing for insurance domains such as Bankrate.com, The Simple Dollar, Coverage.com and NextAdvisor, among others. In addition to auto insurance, Elizabeth regularly writes about home insurance, renters insurance and life insurance. She also covers industry trends and general insurance education.
Edited by
Insurance Editor