How Does Turo Work? Do I Need It?

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Turo (aka, Airbnb for cars) is an app that allows vehicle owners to rent out their vehicles. Both Turo hosts and renters require additional car insurance—however, it works a little differently than a typical policy.
Unfortunately, Turo does not include insurance or rental insurance. So, if you’re considering renting or hosting through Turo, you’ll need to determine the level of coverage that’s right for you.
That’s why the comparison shopping and broker app Jerry has compiled everything you need to know about Turo insurance.
If you’re looking to switch out your car insurance policy, Jerry can help you find cheap car insurance that meets your coverage needs.
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Turo insurance cost for Turo Hosts

Turo partners with Liberty Mutual to provide three different tiers of coverage—Basic, Standard, and Premium.
The cost for each tier is based on a percentage of the total amount you charge to rent your vehicle. Basic coverage costs 15%, Standard coverage costs 25%, and Premium costs 35%.
For example, if you rent out your car for $50 a day:
  • Basic coverage (15%) would cost $7.50 a day
  • Standard coverage (25%) would cost $12.50 a day
  • Premium coverage (35%) would cost $17.50 a day

How Turo works for hosts

Depending on the levels of coverage you choose, the amount of coverage you need will vary. You also have the option to decline Turo coverage, but you’ll need to have your commercial insurance.
All three levels include $1 million of liability insurance as well as physical damage coverage up to $125,000.
Replacement vehicle during repairsNoYesYes
Exterior wear & tear coverageNoNoYes
Loss of hosting incomeNoNoYes
Basic level coverage requires an 80% deductible for the first $3000 to cover any repairs. However, for the Standard and Premium coverage, Turo will waive the deductible plus cover all repairs for your car if your car is damaged.
Turo even provides their form of rental reimbursement. They offer to pay for your replacement car while your car is being repaired—up to $30 a day.
Although the standard and premium tiers of coverage are more expensive upfront, if your car is damaged, you will not have to pay a deductible.

Can I use my own car insurance for Turo?

No, your standard personal car insurance policy does not extend to Turo.
This means you’ll need to have both personal car insurance and additional coverage for Turo.
Be mindful that your standard car insurance rate may increase if you choose to rent out your vehicle. Renting out your car adds additional wear and tear while also putting it at a higher risk of being involved in an accident.
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Turo coverage alternative: commercial car insurance

If you choose to opt out of Turo’s insurance program, you will be required to purchase your own commercial car insurance.
If you choose this route, you won’t receive any coverage from Turo if your car is stolen or damaged. And Turo will still keep 10% of the amount you charge renters.
Before you can decline a Turo insurance policy, you have to submit proof of your commercial insurance.
“The whole process was super easy and not time-consuming at all. 5/5 easy recommendation!” — Satisfied Jerry Customer.

Turo insurance cost for renters

The cost of each level of insurance is based on the cost of the trip price. Premier protection adds 60% to the cost of your rental, Standard adds 40%, and Minimum adds 15%–25%.
For example, you want to rent a Tesla for a couple of days. If the total trip costs $300:
  • The cost for premier protection (60%) would be $180.
  • The cost for standard protection (40%) would be $120
  • The cost for minimum protection (15%-25%) would be $45 - $75
Even if you choose to decline Turo insurance, you will have the state minimum liability coverage. This liability insurance also covers personal injury protection and uninsured/underinsured motorist coverage in states that mandate it.
LevelLiabilityCostDamageExtra perks
Premier$1mm liability coverage60% of the price tripNo deductible
Standard$1mm liability coverage40% of the price trip$500 deductible
MinimumState minimum liability coverage15%-25% of the price trip$3,000 deductible
DeclineState minimum liability coverageNo coverage

How Turo insurance works for renters

Similar to hosts, renters have three different protection plans they can choose from—Premier, Standard, or Minimum.
If you have your own personal car insurance policy and can confirm your own rental car insurance, you can opt-out of the program altogether.
If you choose to decline the protection plan, you will still get the state’s mandatory minimum liability insurance coverage.
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Frequently asked questions

Can I use my credit card rental coverage?

Credit card companies don’t usually extend coverage to peer-to-peer car rental companies like Turo. Regardless, you should contact your personal credit card company to find out the details of their policy.

Are there any discounts and promos for Turo?

Turo often gives a good amount of flexibility to hosts by allowing them to set their own discounted rates. Plus, Turo offers discounts for first-time customers.

How to find alternatives to Turo’s coverage

If you’re looking to opt out of Turo’s insurance coverage, skip the hassle of comparing different rental car insurance, and let Jerry do it for you.
Jerry will do all the hard work of finding the best coverage and the most affordable price. Best of all—it’s free!
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