How Does Turo Car Insurance Work?

Turo offers five insurance policy plans for hosts that each include $750,000 in liability protection and deductibles ranging from $0 to $2,500.
Written by R.E. Fulton
Edited by Jessica Barrett
Turo, the peer-to-peer car-sharing service, offers five different levels of insurance coverage through
Travelers
for hosts who rent out their own cars—but you’ll also need a personal
car insurance
policy, which can be hard to find.
  • All of Turo’s protection plans for hosts include up to $75,000 of third-party liability insurance underwritten by Travelers.
  • Depending on the plan you choose, your policy may also include physical damage coverage, replacement vehicle reimbursement, exterior wear-and-tear reimbursement, and/or loss of income coverage.
  • Turo guests have the option of purchasing a protection plan that includes liability insurance and a physical damage contract.

Car owners (aka hosts) can choose from 5 Turo insurance plans

Turo refers to vehicle owners who rent out their cars through Turo as “hosts” (just like Airbnb). As a host, you have access to five protection plans, each with a different level of coverage. 
All of Turo’s protection plans include up to $750,000 of third-party
liability insurance
underwritten by Travelers, including
bodily injury
and
property damage coverage
With that coverage, you’ll be protected from just about any out-of-pocket costs associated with an at-fault accident when a guest is driving your vehicle. 
Here’s how it all breaks down:
Plan
Summary
% of trip cost you earn
Third-party liability coverage
Physical damage deductible
Replacement vehicle reimbursement
Exterior wear-and-tear
Loss of income coverage
90
High risk, high reward
90%
Up to $750,000
$2,500
Not included
Not covered
Not included
85
High income with a large deductible
85%
Up to $750,000
$1,625
Not included
Not covered
Not included
80
The happy medium
80%
Up to $750,000
$750
Not included
Not covered
Not included
75
Low deductible with extra perks
75%
Up to $750,000
$250
$30/day for up to 10 days
Not covered
Not included
60
Maximum protection
60%
Up to $750,000
$0
$50/day for up to 10 days
Covered with exceptions
Turo reimburses potential earnings for up to 30 days based on last 60 days’ income
Unlike a traditional car insurance policy, you won’t pay a separate bill for your Turo insurance. 
The cost of your plan is based on the amount Turo deducts from the trip price—that is, the car’s rate multiplied by the number of days in the rental period. The higher your protection level, the less you’ll take home from each guest trip.

Turo insurance offers more than just liability coverage

Here are the other benefits included in Turo’s insurance plans: 
  • Physical damage coverage: Turo pays for eligible physical damage to host vehicles up to the
    actual cash value
    of the car or $200,000 (whichever is cheaper) once you’ve paid the deductible associated with your plan. 
  • Replacement vehicle reimbursement: If your car needs to be repaired after an accident, higher plans include some
    daily reimbursement
    to cover the cost of a replacement vehicle, and even some cash to offset the cost of a total loss. 
  • Exterior wear-and-tear reimbursement: If you choose the highest level of protection, Turo will pay to repair most
    small dents
    , scratches, and cracks to the vehicle’s exterior caused during a trip. 
  • Loss of income coverage: With the most comprehensive protection plan, you’ll get the choice between replacement vehicle reimbursement or reimbursement from Turo for the hosting income you lost while the car was being repaired. 

You can decline Turo’s car insurance coverage

Turo’s protection plans are available to all hosts, but they’re not technically required. 
You can decline Turo’s coverage as long as you have a car rental commercial policy in place. If you choose this option, you’ll miss out on all the additional benefits of a Turo protection plan—but you’ll be able to take home up to 92.5% of every Turo trip cost. 

If you’re a Turo host, your personal car insurance company might drop you

Here’s the bad news: it’s very hard to get (or keep) personal car insurance if you rent your vehicle out through Turo. And because Turo requires hosts to provide
proof of a personal car insurance policy
to sign up, it’s hard to square that circle. 
  • Car insurance companies are wary of peer-to-peer car-sharing services because they’re new, unfamiliar, and carry a lot of inherent risks
  • Most major insurance providers won’t insure a car that you rent out with Turo
  • If you’re trying to get into the car-sharing marketplace, you’ll need an insurance company that’s willing to cover your personal vehicle while you’re using Turo
  • Metromile’s
    pay-per-mile insurance may be an affordable option for Turo hosts in
    California
    and
    Illinois

Turo poses insurance hurdles—but it might still be worth it

Depending on your vehicle and your location, you may be able to earn a decent income on the side by renting out your car on Turo.
Here are the average annual earnings for various popular Turo vehicles nationwide, according to Turo’s online Car Calculator feature:
Still, the potential earnings may not be worth the financial risks or hassle of finding an insurer.
If you have one car: You may be better off seeking opportunities with a more traditional ride-sharing service—like Uber or Lyft—or pursuing a different side hustle.
If you have multiple cars: You may qualify for a commercial insurance policy that would allow you to decline Turo’s coverage.
Liberty Mutual
—which used to underwrite Turo’s insurance coverage—offers exclusive small fleet commercial policies to Turo hosts in California. 

How Turo insurance works for guests (aka car renters)

For guests, Turo insurance works a lot more like
rental car insurance
from a traditional car rental company—with some important exceptions. 
When you rent a car through Turo, you’ll choose between three different protection plans: 
Plan
Coverage
Cost
Deductible
Minimum Plan
State's minimum liability
Physical damage contract
24/7 roadside assistance
15-25% of your trip cost ($10/day minimum)
$3,000
Standard Plan
State's minimum liability
Physical damage contract
24/7 roadside assistance
40% of your trip cost ($12/day minimum)
$500
Premium Plan
Up to $750,000 liability
Physical damage contract
24/7 roadside assistance
65-100% of your trip cost ($14/day minimum)
$0
Keep in mind: Premium coverage isn’t available for all vehicles or trips, and you must be 21 years old to purchase it. 

If you’re renting, it’s usually best to purchase Turo insurance

As a Turo renter, you’re usually better off paying for Turo’s protection plan. All of them offer secondary coverage, which means your personal auto insurance policy will still be the primary coverage for your Turo rental. 
If you have enough personal auto insurance coverage, you can choose to waive Turo’s protection—as long as your insurance company extends coverage to peer-to-peer rentals. 
Spoiler alert: Most insurance companies won’t cover you when you’re driving a Turo rental car unless you’re renting from a commercial host. Neither will credit card companies, even though they’ll often provide coverage for traditional rental cars. 
The bottom line: Call your insurance company before you turn down Turo’s coverage to make sure that you’re covered.
"Using
Jerry
is a super straightforward process, and at each step, you can see exactly what coverage you’re paying for. Thanks to Jerry, I’m paying $900 less each year while keeping full coverage for my new car!” —Martin H.
RECOMMENDED
Compare auto insurance policies
No spam or unwanted phone calls · No long forms
Find insurance savings
Are you overpaying for car insurance?
Compare quotes and find out in 45 seconds.
Try Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings