Car Insurance with Turo Car Sharing
Learn the details of Turo's insurance plans as well as when to instead opt for your personal or commercial car insurance policy when renting a car through the popular car-sharing marketplace.
What is Turo and how does it work?
Turo has become a popular online marketplace for renting a car outside of traditional rental car companies. It is a car-sharing service (think Airbnb, but for cars) where the car's owner rents it to guests for a fee, via an app.Â
Turo offers multiple insurance plans (via Travelers) for both guests and hosts. Guests can decline to add a Turo insurance plan if their personal car insurance extends specifically to "peer-to-peer" rentals. Hosts must opt-in to a protection plan, even if they have a commercial auto insurance policy. Whether renting your car or using someone else's, you should know the ins and outs before committing to Turo.Â
Key takeaways
- Turo offers several tiers of auto insurance coverage for hosts and renters, but it isn't automatically included
- Turo hosts must opt-in for some level of a Turo protection plan alongside their personal car insurance
- Renters should verify if their personal car insurance policy specifically covers them if they use a rental through Turo
- Renters pay per day for coverage (starting at $10) and hosts have fees subtracted from their earnings
Does a Turo rental car automatically include insurance?
No — Turo does not automatically provide insurance coverage for both hosts and renters. However, both parties have multiple protection plans they can choose from or decline if they have their own applicable commercial or personal auto policies. If you opt-in for a Turo protection plan and you’re already insured, their liability insurance will supplement your existing coverage as a secondary source.
Does my car insurance rental coverage work with Turo?
The short answer: maybe. While it's a myth that car insurance follows the driver (it usually follows the vehicle), Turo renters often find that their personal insurance policy's comprehensive and collision coverage extends to a rental car. However, you should always verify this with your insurance provider as some companies may treat peer-to-peer car rental services differently from traditional car rental agencies.Â
Also keep in mind that if your insurance does cover you in a Turo rental, and the car is damaged to the point you decide to make a claim, you are responsible for your deductible and will then have a claim on record (even though it wasn't your own car). This is something to consider when deciding whether to rely on your own coverage or buy a protection plan that could eliminate the need for a claim through your personal policy.Â
Agent insight
One of our insurance advisors here at The Zebra offered their expertise in helping differentiate Turo insurance plans and typical rental car coverage in a personal auto policy. Here's what they had to say:Â
"Let's first clarify what is meant by rental car. We're either talking about a rental you use on vacation (or a similar situation) or one you use because your personal car has been damaged.
As a car owner renting your vehicle on Turo you will need insurance (which can be commercial) and you'll choose a plan through Turo while listing your car. If you are the person renting the car the main thing you want to ask your insurance carrier is, does my policy cover rental or other cars that I drive? This is meant for rental cars you pay to use on vacation, for example.Â
Turo insurance and the standard rental car coverage in an insurance policy are completely different.
As far as rental car coverage on your insurance policy, this is only used if your car is not functioning due to a covered claim. If your car is not driveable, your policy's rental coverage (if you have it) would kick in to get you another vehicle to use in the meantime. It may also cover expenses such as Uber or Lyft (and possibly Turo). Make sure to reach out to your carrier to clarify the specific uses they will cover should you have to use that coverage."
-Simone Mancuso, Insurance Advisor at The Zebra
Turo details for the renter
As a Turo renter (also referred to as a guest), it’s imperative to double-check with your insurance company to see if your personal car insurance coverage extends to a rental car. Many insurers have no issues covering most rental cars, but may not cover Turo rentals specifically because of the peer-to-peer system. Be sure to ask exactly what coverages extend to a Turo vehicle — in many cases, insurance providers may offer liability but not physical coverage for a rental car.
To use the car rental services of Turo, you are not required to have your own personal car insurance policy. Like hosts, renters can choose one of three tiers of coverage through Turo’s protection plans.
If a guest already carries at least the state-mandated minimum amounts of coverage in the state where the vehicle is registered — and if their current policy extends to their Turo rental — they may choose to decline Turo’s protection plans. In addition, these protection plans are not offered if a vehicle is booked with a Commercial Host, as they are expected to carry their own commercial policy.
It's worth noting that these protection plans do not cover interior damage or mechanical damage, meaning guests will pay out of pocket for related damage excluding normal wear and tear.
| Coverage | Minimum | Standard | Premier* |
|---|---|---|---|
| Cost | 15% of trip price for trips more than $250 and 25% when less than $250. Minimum $10/day | 40% of trip price. Minimum $12/day | 65-100% of trip price. Minimum $14/day |
| Liability coverage | Minimum required by the state | Minimum required by the state | $750,000 ($1,250,000 in NY) |
| Deductible | $3,000 | $500 | $0 |
| Physical damage for up to the actual cash value of the vehicle | Yes | Yes | Yes |
| Mechanical or interior damage | No | No | No |
*Not available to drivers below the age of 21.
The main differences between these tiers are deductible amounts and liability limits. All include physical damage but no coverage for mechanical or interior damage. The physical damage portions of all of these plans are meant to be used as secondary coverage to any other insurance you may already have.[1]
Turo details for the car owner (or host)
While you must have a personal car insurance policy to host through Turo, it will never extend to cover the rental use of your vehicle(s) because you are using the vehicle for commercial purposes. You will risk your insurance provider dropping you as a client if you rent out your personal car as a business.
Regardless of the protection plan you choose, DO NOT cancel your personal insurance. Turo's coverage is limited to rental periods, which the FTC mentions can leave the vehicle at risk between trips (since previous guests know where you keep the car).[2] Canceling your personal insurance could result in uncovered damages, a breach of financing or leasing agreements, license suspension, or automobile impoundment.
Turo partners with Travelers to provide a choice between five tiers of coverage to their hosts, named after what percentage of the cost the host receives — you may select one of the 60, 75, 80, 85 or 90 plans. Hosts are required to choose a Turo protection plan, even if it is the highest deductible. It’s worth noting that as a Turo host, your take-home amount per trip will change depending on which protection plan you choose.
| Coverage plan | 60 plan | 75 plan | 80 plan | 85 plan | 90 plan |
|---|---|---|---|---|---|
| Host take | 60% of trip price | 75%Â of trip price | 80% of trip price | 85% of trip price | 90% of trip price |
| Liability limit (Travelers) | $750,000 | $750,000 | $750,000 | $750,000 | $750,000 |
| Deductible for physical damage | $0 | $250 | $750 | $1,625 | $2,500 |
| Replacement vehicle reimbursement costs | $50/day, for up to ten days* | $30 per day for up to ten days** | Not included | Not included | Not included |
| Exterior wear-and-tear | Turo is responsible | No coverage | No coverage | No coverage | No coverage |
| Loss of hosting income during repair | Turo is responsible (based on the last 60 days average earnings, up to a maximum of 30 days), OR host can opt for a 10 day max replacement vehicle reimbursement | No coverage | No coverage | No coverage | No coverage |
*In the event of a total loss, the full $500 will be paid or the Host may opt for Loss of Hosting Income.
**In the event of a total loss, the full $300 will be paid.[3]
Can you decline Turo insurance coverage as a host or a guest?Â
For guests:
If you are renting a car through Turo in the UK or France, you are required to purchase a protection plan. However, in other locations (including the US), you may decline to purchase coverage. Turo makes it clear on their website that by declining coverage, you're taking responsibility for any damages. They (and we!) recommend talking to your insurance agent about coverage of peer-to-peer rentals before declining the Turo plans.[4]Â
For hosts:
You must carry your own personal vehicle insurance, as well as choose a protection plan from Turo if you want to rent out your vehicle through the platform. There are certain requirements in different countries, so do your research if you're outside of the US. Along with carrying proof of insurance in your vehicle, you'll also be required to carry a Turo incident information card.[5]
How much does Turo insurance cost?
The cost of Turo insurance can vary greatly for both hosts and guests. This is because Turo's insurance pricing is based on the total cost of your trip and the chosen plan. Look into the nuances of Turo insurance costs for each group below.
Guests opting to use one of Turo's insurance plans can expect to pay at least $10/day. This amount can quickly increase as it's a function of the overall cost of your trip and the deductible of each plan. For example, a 2-day $300 trip on the "Minimum" plan would result in the renter paying $45 for insurance. However, decreasing your deductible by $2,500 when switching to the "Standard" plan would increase your total Turo insurance costs by 300% to $120. See more information on Turo insurance plans for renters below.
ZEBRA Tip: If your personal insurance doesn't specifically cover Turo rentals, go with the Turo plan with the highest deductible you could afford if you were in an accident.
Hosts do not pay for Turo insurance in the traditional sense. Rather, the cost of insurance is subtracted (with other relevant fees) from each trip's take-home amount. The higher your coverage and lower your deductible, the lower your take-home amount. For example, Turo's highest coverage "60 plan" has no deductible and covers exterior wear-and-tear and loss of income. However, you can expect to only keep 60% of the trip cost under the 60 plan. Just adding a $250 deductible and losing the exterior wear and tear and loss of hosting income coverage increases your take-home amount to 75% with the 75 plan.[6]
ZEBRA Tip: To save money on Turo insurance as a host, go with the highest deductible you can afford should the worst arise.
Q: Does credit card insurance cover Turo rentals?
A: Usually not. While many credit cards offer rental car coverage, most exclude coverage for vehicles rented through peer-to-peer services like Turo. For example, American Express (Amex) and Chase won't cover Turo rentals unless you can prove the vehicle came from a commercial car rental agency. You should always refer to your credit card's terms and conditions or call the number on the back of your card to verify whether your credit card company covers car-sharing rentals like Turo.
Is Turo insurance worth it?
Pros and cons of a Turo rental experience
We were able to chat with a Turo customer about his experience renting a vehicle through Turo. Here's what he had to share about the pros and cons of the program:Â
"The app was user-friendly and the host I worked with was nice and super responsive. I had all my questions answered within 15 minutes of booking, but that may depend on the individual you're renting from.
The biggest con was the risk of crashing a very nice vehicle (a Corvette) which I didn't own! I did buy the insurance policy so the maximum amount I would've had to pay out-of-pocket was $500 if there had been damage. It was still a little nerve-wracking."Â
-Chris from Mansfield, MA
Frequently asked questions
Protect your car with the right coverage at the best value.
Protection Plans in detail for US guests. Turo
Peer-to-peer car sharing: A potentially risky side gig. FTC Consumer Advice
Insurance and vehicle protection or Turo hosts. Turo
Rental car insurance. Insurance Information Institute
Personal insurance requirements for hosts. Turo
Protection plans in detail for US hosts. Turo
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- What is Pleasure Use Car Insurance?
- Why is Car Insurance Mandatory?
- 12-Month Car Insurance: Pros and Cons
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.