How Does Turo Work With Insurance? A Quick Guide for Renters and Hosts

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Written by Nick Versaw

Updated May 20, 2022

The gig economy continues to give people a chance to earn income in full-time, part-time, or moonlighting capacities. While driving for ridesharing services like Uber or Lyft is the most popular option for many gig workers, car-sharing site Turo has emerged as a viable alternative to earn passive income through your personal automobile. However, a common question arises about this innovative car-sharing platform: How does Turo work with insurance?

Whether you’re a renter or a lender, now is the perfect time to update or upgrade your coverage as necessary. Just pop your ZIP code in here to find the best rates:

What Is Turo?

Founded in 2009, Turo is a car-sharing marketplace that connects car owners with renters. The idea is simple. Car owners who want to earn extra income list their car on the Turo website and renters select a car that’s perfect for their needs. The rentals can last anywhere from a few hours to a month.

Here’s a quick glimpse of Turo’s operations:

• 350,000 listings are available in 7,500 cities across the U.S., Canada, and the U.K.
• More than 10 million active users
• Average of $10,000 earned in hosting income each year
• 1,300 available makes and models
• 100% carbon offsets, as Turo invests in greenhouse gas-reducing projects

With Turo, renters can reduce their costs compared to traditional car rental companies while owners can earn passive income of up to 90% of the total price of the rental cost. In this regard, it’s a win-win for both sides.

How Does Turo Work With Insurance?

One common concern shared by both renters and hosts is car insurance. Because a Turo car is unlike any other product in the gig economy, confusion arises. So if you’re wondering, “How does Turo work with insurance?”, you aren’t alone.

Both renters and hosts have available insurance options, so getting a more in-depth idea of what’s covered can help you choose the perfect car insurance coverage.

How Turo Insurance Works for Individual Hosts

Unless you own a business that rents out vehicles, you must select one of Turo’s five car insurance coverage plans when you list your car on the website. In 2021, Turo switched its insurance company from Liberty Mutual to Travelers, but the coverage remains the same. It still offers five levels of protection, but all insurance plans include:

• 24/7 roadside assistance
• Physical damage reimbursement
• $750,000 in third-party liability insurance

The five Turo insurance plans are outlined here, ranging from the most comprehensive 60 Plan to the cheapest 90 Plan:

• 60 Plan: Earn 60% of the trip price, no deductible, exterior wear and tear reimbursement, loss of hosting reimbursement if your car is in the shop, and $50 a day replacement vehicle reimbursement
• 75 Plan: Earn 75% of the trip price, $250 deductible, and $30 a day replacement vehicle reimbursement
• 80 Plan: Earn 80% of the trip price, $750 deductible
• 85 Plan: Earn 85% of the trip price, $1,625 deductible
• 90 Plan: Earn 90% of the trip price, $2,500 deductible

To choose the right protection plan, you need to assess your ability to pay out of pocket. If you can afford a higher deductible, the 90 Plan might net you the most money, albeit with higher risk. If you can’t afford a high deductible, the 60 Plan reduces your income, but will take care of repairs without any cost out of pocket.

Keep in mind that you will need one of these plans in addition to your personal car insurance coverage, which typically does not cover vehicle owners on a Turo rental.

How Turo Insurance Works for Commercial Hosts

If you’re an individual host, you cannot opt-out of Turo’s car insurance options. However, commercial hosts, or those who run a rental company, can decline Turo rental coverage and use their own commercial car insurance.

However, Turo requires commercial hosts to submit proof of commercial insurance to decline coverage. Keep in mind that you won’t receive any coverage from Turo and the company will still take a 10% cut of the total amount of the trip.

How Turo Insurance Works for Renters

Renters also have the option to choose a rental insurance plan from Turo when they rent a car from a Turo host. If you don’t own a car, and thus have no car insurance, don’t worry. You don’t need your own policy to rent a car from Turo. However, the insurance rates vary depending on the price of the car. So if you’re driving a Mustang, you’ll have higher insurance than if you rent a Camry.

So, how does Turo work with insurance for renters? Here are the three plans offered by the car-sharing company:

• Premier Plan: Costs 65-100% of the trip total, $0 responsibility for physical damage to the host’s vehicle, liability coverage up to $750,000, minimum $14 a day
• Standard Plan: Costs 40% of the trip total, $500 responsibility for physical damage to the host’s vehicle, state minimum liability insurance minimum $12 a day
• Minimum Plan: Costs 18-25% of the trip total, $3,000 responsibility for physical damage to the host’s vehicle, minimum $10 a day

If you have your own car insurance, all of these plans act as secondary coverage. This means that they only kick in once your own insurance has been maxed out. You can also decline coverage, which eliminates any added cost. However, you need to make 100% sure that your car insurance covers Turo trips.

According to most insurance companies, Turo doesn’t qualify as an actual rental car because of the way the platform is structured. As a result, you need to find out if your insurance provider will cover a Turo rental before you decline a Turo protection plan. Call your agent or company to find out more about your personal vehicle insurance and how it applies to Turo.

Moreover, credit cards that often provide additional coverage or a collision damage waiver for traditional rental cars don’t usually cover Turo rentals. Again, you should call your credit card company to verify what’s covered and what isn’t.

Checking Your Car’s Turo Eligibility

Now that you grasp the basic idea of how Turo works with insurance, the next step is to list your car. Before you do that, you just need to make certain that your car is eligible. These are the requirements to list your car on Turo:

• Have at least state minimum coverage car insurance
• Ensure that your car insurance company covers Turo rentals
• Choose one of the Turo insurance coverage plans
• Have a car that’s no more than 12 years old
• List your car only on Turo and no other car-sharing sites, referred to as an exclusivity contract
• Be registered in any state except for New York
• Have fewer than 130,000 miles
• Have a clean title (no salvage or rebuilt titles allowed)
• Have a fair market value of no more than $200,000 (no listing your Lambo here)
• Have never been in a total loss accident

Using Turo: The Perfect Time to Update Your Car Insurance Policy

Whether you’re a renter or a host, listing or choosing a vehicle is the perfect time to update or upgrade your car insurance, especially if you have state minimum coverage. State minimum liability coverage rarely covers the cost of an at-fault accident, leaving you holding the bag for any added costs.

With Compare.com, you can find quotes for all types of personal auto insurance quickly and easily, including:

• Underinsured and uninsured motorist coverage
• Personal injury protection (in no-fault states)
• Bodily injury and property damage limits
• MedPay

Hopefully, you’ve answered the convoluted question of how Turo works with car insurance. But with a little help from Compare.com, you can ensure you have the right auto policy to enjoy your next Turo trip.

Enter your ZIP code below to find the best rates for your car insurance and enjoy the ride ahead!

Nick Versaw Managing Editor

Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more.

As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.