Is Turo Covered by Car Insurance?

Turo is a peer-to-peer car-sharing platform connecting vehicle owners (hosts) with individuals (guests) seeking temporary car use. A common question for participants is how insurance coverage functions within this arrangement. Understanding Turo’s protection plans and their interaction with personal auto insurance is important for anyone using the platform.

Turo’s Protection Plans

Turo offers various protection plans for hosts and guests. These plans are distinct from traditional insurance policies, establishing a contractual agreement regarding financial responsibility during a trip. The chosen level influences host earnings or guest costs.

Hosts can choose from five protection plans, named by the percentage of the trip price they receive: 60%, 75%, 80%, 85%, and 90%. All plans include third-party liability insurance, typically covering up to $750,000 for bodily injury or property damage to others. In New York, this liability coverage extends to $1,250,000.

Beyond liability, these plans cover physical damage to the host’s vehicle. Turo reimburses eligible physical damage costs up to the vehicle’s actual cash value or $200,000, whichever is less. This reimbursement is subject to a deductible that varies by plan: $0 for the 60% plan, $250 for 75%, $750 for 80%, $1,625 for 85%, and $2,500 for 90%.

Turo’s physical damage reimbursement does not cover certain types of damage. Exclusions include wear and tear, minor interior damage, and cleaning fees. These plans also generally do not cover lost income from the vehicle being out of service, though some offer limited rental reimbursement.

Guests select from Premier, Standard, Minimum, or the option to decline protection. Every Turo trip includes third-party liability insurance, covering bodily injury or property damage to another person if the guest is responsible. This liability coverage is generally secondary to any personal insurance a guest might have, but in states like New York and Maryland, Turo’s liability coverage may act as primary.

Guest protection plans limit the renter’s financial responsibility for physical damage to the host’s vehicle. The Premier plan has a $0 deductible for physical damage. The Standard plan limits guest responsibility to $500. Guests choosing the Minimum plan receive state-mandated minimum liability coverage and are responsible for all physical damage costs up to the vehicle’s value.

Guests can decline Turo’s protection plans if their personal auto insurance covers peer-to-peer car sharing. However, declining protection means the guest only receives state minimum third-party liability insurance. Guests should understand that these protection plans are contractual agreements with Turo, not traditional insurance policies, and typically exclude coverage for mechanical or interior damage.

Interaction with Personal Car Insurance Policies

Personal car insurance policies often have limitations for peer-to-peer car-sharing platforms like Turo. Most standard personal auto policies are designed for personal use and exclude commercial activities. Therefore, if a vehicle is used for business purposes on Turo, the personal policy may not provide coverage or may offer only limited coverage.

For hosts, personal auto insurance is unlikely to cover vehicle damage or liability claims when the car is rented on Turo. Renting transforms its use from personal to commercial, so an incident during a Turo trip would likely fall under a commercial exclusion. This leaves the host reliant on Turo’s protection plan or a separate commercial auto policy.

Similarly, for guests, personal auto insurance might not extend coverage to a vehicle rented through a peer-to-peer platform. Many personal policies cover traditional rental cars, but Turo’s model is different. This distinction can lead to a denial of coverage for physical damage or liability during a Turo rental.

Given these common exclusions, it is advisable for both hosts and guests to contact their insurance provider before using Turo. They should inquire about their policy’s terms regarding peer-to-peer car sharing. Some insurance companies offer “hybrid” policies or endorsements that bridge the gap between personal and commercial use for occasional car-sharing activities.

Handling Incidents and Claims

When an incident occurs during a Turo trip, hosts and guests must follow a process to report and resolve the situation. Prompt reporting and thorough documentation are crucial for a smooth claims experience. First, assess the situation, ensure safety, and contact emergency services if necessary.

Hosts must report damage within 24 hours after the trip concludes. Guests should also report damage promptly through the Turo app or website. Both parties should gather information at the scene, including:
Photos and videos of the damage, surrounding environment, and other vehicles involved.
Details from other drivers, such as license and insurance information.
Filing a police report if required.

Once reported, Turo’s claims team initiates a review. They confirm the damage occurred during the trip and validate eligibility, usually within three business days. This involves checking if the damage is outside normal wear and tear, or not related to a terms of service violation or prohibited use. Turo may request additional documentation from both parties.

After eligibility confirmation, Turo secures a damage estimate. This often involves a photo-based appraisal, completed quickly. For severe or complex damage, or insufficient photo quality, Turo may dispatch a field appraisal team for a physical inspection, which can take five to seven days.

The resolution process depends on the chosen protection plan and damage nature. If a guest is responsible, Turo details costs, including appraisal fees, repair costs, and a processing fee up to $575. Turo then charges the guest’s payment card or seeks reimbursement from their personal insurer. For hosts, Turo pays for eligible repairs above the plan’s deductible, or provides cash in lieu of repairs. For missing or stolen vehicles, Turo investigates for up to 30 days after receiving a police report.