Turo insurance review 2023

Turo is not a typical car insurance provider. Turo is a car-sharing program that acts as an alternative to traditional car rental companies. Similar to Airbnb, where people can rent out their homes, Turo allows “hosts'' or car owners to rent out their vehicles to other drivers, known as “guests.” Turo offers limited forms of insurance for its users — but not the broader public. Meaning, if you are shopping around for the best car insurance, it is safe to remove Turo from your list of potential providers and request quotes elsewhere.

Whether you list your car on Turo or rent a car through Turo, it's likely that your personal auto insurance policy or credit card coverage will not apply. If you are the host, you may be covered by your own commercial auto insurance policy. If you are the guest, it’s likely that your personal car insurance policy will only cover you if it specifically includes peer-to-peer rental programs. In those instances, you may elect to opt out of Turo’s car insurance program. However, it is best to contact your insurance provider to double-check you are covered before renting a car through Turo. 

If you do not have a commercial car insurance policy or your personal one excludes peer-to-peer rentals, you might consider a Turo policy. As a host, participating in Turo's car insurance and protection plans could help provide some extra financial security. Guests who drive cars through Turo can also opt into one of three plans that may help limit out-of-pocket costs if the vehicle is damaged during their rental period. Our Turo insurance review can help give a better idea of how its insurance policies work, so you may decide if signing up for a policy is best for you. 

How does Turo car insurance work for hosts?

Turo hosts can choose from five Turo car insurance plans, all of which come with $750,000 in third-party liability coverage provided by Travelers. In addition, drivers can access 24/7 roadside assistance. Since Turo car insurance is created explicitly for the Turo car-sharing app, third-party customer service and financial strength ratings are not available.

The cost for each Turo plan is covered by a portion of the money Turo's rental drivers pay to rent the host's car. The deductible that the host pays is tied to the percentage of the trip cost the host retains as profit. The greater the percentage, the higher the deductible the host will pay.

Here are the Turo car protection plans for hosts available:

• 60 Plan: This is Turo’s most inclusive car insurance plan. With the 60 Plan, hosts earn 60 percent of the trip price and there is no deductible for claims. The plan fully reimburses the host for any exterior wear and tear, and includes either loss of hosting income for the time it takes to complete repairs or $50 per day for replacement vehicle reimbursement.
• 75 Plan: Hosts who choose the 75 Plan get 75 percent of the trip price. In this case, hosts assume 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 percent of the trip price with the 80 Plan. This plan comes with a $750 deductible for physical damage and does not include any coverage for exterior wear and tear, replacement vehicle reimbursement or loss of income.
• 85 Plan: With the 85 Plan, hosts get to keep 85 percent of the trip price but take on a $1,625 deductible. This plan extends no coverage for exterior wear and tear, replacement vehicles or loss of income.
• 90 Plan: The 90 Plan allows hosts to keep 90 percent of the trip price. The deductible for this plan is $2,500 and excludes coverage for exterior wear and tear, replacement vehicles or loss of income.

How does Turo car insurance work for guests?

Guests who rent a car through Turo's platform can also participate in separate vehicle protection plans. All plans provide the same $750,000 liability coverage through Travelers but vary in the out-of-pocket expenses a guest is responsible for if the car is damaged during their booking period. Keep in mind that only physical damage is covered with these plans, while mechanical and interior damage is not.

Here is a quick summary of the three Turo car protection plans for guests available:

• Premier plan: Under this plan, guests won't have a deductible for physical damage to their rented car. It costs 65 to 100 percent of the trip price, with a minimum charge of $14 per day. Additionally, it may not be an option based on trip details, vehicle type or other factors. For trips in New York, the liability coverage increases from $750,000 to $1,250,000.
• Standard plan: Guests who choose the Standard plan have a $500 deductible for physical damage to the host's vehicle. The cost is 40 percent of the trip price, with a minimum charge of $12 per day.
• Minimum plan: A $3,000 deductible will apply for physical damage to a host's vehicle. The cost varies depending on the trip price. For trips over $250, the cost will be 15 percent of the trip price, while trips below $250 will cost 25 percent of the trip price. Both have a minimum charge of $10 per day.
• Decline physical damage protection: With this plan, any physical, mechanical or interior damage will be the guest's financial responsibility. Third-party liability insurance will still be provided up to the state's minimum limit. However, depending on the state, this may not be an option for guests, in which case they will need to select one of the plan options above.

If you're renting a car through Turo, it may be essential to understand how Turo protection plans work as a guest. This may help you decide which plan is best for your needs and budget.

Pros and cons of Turo car insurance

Turo car insurance cost

The average cost of car insurance with Turo is calculated differently than it is for most policies. A traditional car insurance company usually takes a look at various individual rating factors; like the kind of car you have, your claims history or the state you live in; to calculate how much you will pay for your policy. 

Instead, Turo car insurance rates are based on the kind of plan you elect. For hosts, this means you allocate a portion of your earnings, between 10 and 40 percent, to pay for your insurance. For guests, the cost of insurance is based on the coverage tier and total cost of the trip.

There is some flexibility for Turo customers when it comes to participating in their vehicle protection plans. Depending on the trip type and other factors, guests may be able to opt out of one of the three plans available to them, although this does mean that the entire cost of any incident may be their full financial responsibility.

If you're a host considering renting out your vehicle with Turo and want to keep more of the trip price, you may consider other options for car insurance. Keep in mind that because most personal car insurance policies exclude coverage when the car is being used for car-sharing services, you may need to look into commercial auto policies. The best thing to do in this case may be to reach out to a local insurance agent to learn what options are available to you.

Other Turo tool and benefits 

Turo customers may be able to access an array of extra perks. Hosts can also take advantage of unique offers to help maintain, clean and insure their cars. Some of the more unique perks include:

• Calculator tool: Turo's online calculator is designed to help potential car-sharing hosts see how much money they could earn per trip by listing their vehicle.
• Small fleet insurance: Turo hosts could earn special discounts on small fleet insurance with Liberty Mutual, but is currently only available in California.
• Cleaning services: Hosts can receive up to 75 percent off car cleaning services from Spiffy.
• Car maintenance: Turo offers car maintenance discounts for hosts from a variety of providers. These include discounts for services like oil changes, windshield replacement and tune-ups.
• Exclusive deals: Turo users can access exclusive vehicle safety-related deals, like 50 percent off safety inspections from AndGo by Goodyear or a virtual car inspection for $25 from Yoshi. Unfortunately, Turo does not advertise any deals that promote car insurance savings.

Frequently asked questions about Turo