Does My Car Insurance Cover Turo?
Last Updated on May 3, 2023
Turo is a great alternative to a traditional rental car for some people, but are you covered by your insurance when you use Turo? For both car owners and car borrowers, the car insurance for Turo can be somewhat tricky. Turo offers its own insurance coverage, but you can decline it if you have your own coverage. But will your private insurance company cover you if you decline that coverage?
Continue reading to learn all you need to know about insurance coverage and Turo. Below, we’re answering all your questions, including: Do I need to buy insurance for Turo? Does my car insurance cover Turo? How does Turo insurance work?
Key Takeaways:
- Turo is not the same as a traditional rental car, so if you have rental car coverage with your insurance or credit card, it may not apply to Turo.
- If you are borrowing a Turo car, you may be covered by your personal car insurance or credit card, but it’s essential to check with your insurance company before borrowing.
- If you are a car owner hosting your car on Turo, you need to check with your car insurance company to see if you are covered or can purchase additional coverage for the business use of your vehicle.
- Turo offers insurance coverage, but you can decline it if you have your own coverage. However, it’s important to understand the coverage you have and what additional coverage you may need. The cost of Turo insurance varies based on the plan you choose.
Turo is Not the Same as a Rental Car
According to most insurance companies, Turo is not the same as a rental car. If you have insurance coverage that covers you for rentals, it may not cover you for borrowing a Turo car. Likewise, if you have insurance available for rental cars from your credit card company, it likely won’t apply to borrowing or renting a car from Turo.
Turo Insurance as a Borrower
If you are borrowing a Turo car, you may still be covered by your personal car insurance or your credit card. Many private car insurance policies cover you to drive any vehicle. If this is the case, you will be covered to borrow any car. However, you must keep in mind that your coverage to drive someone else’s car is limited to the maximums you have set for your policy. If you borrow a car that is worth a lot more than your maximums, you might want to purchase additional coverage from Turo.
Before borrowing a car from Turo, you should check with your car insurance company and your credit card company to see if you are covered and for how much. Whenever you are in doubt about your coverage, it is important to ask directly. Your car insurance agent or their customer service department should be able to tell you if you are covered to borrow a car from Turo or not.
Turo Insurance as an Owner
Car insurance for hosts of cars on Turo is a bit trickier. Most private car insurance policies do not cover business use of your vehicle. This is why many insurance policies do not cover Uber or Lyft. Turo is no different. You are using your car to earn money, and for that reason, your insurance policy may not cover damages incurred by another driver.
Some car insurance companies will allow you to purchase special policy protections that cover you for business use of your vehicle. This usually comes with an additional cost. However, many car insurance companies are specifically excluding coverage for Turo vehicles.
It is important to contact your car insurance company before putting your car on Turo to find out if you are covered or can purchase additional damage or loss coverage. However, once you mention this to your car insurance company, your account will be noted. If they deny coverage for Turo and you do it anyway, your car insurance company can cancel your policy and refuse to cover you for other accidents.
If your primary car insurance company doesn’t cover you for placing your car on Turo, you can buy supplemental coverage from Turo through Liberty Mutual. However, if you have an accident or damage your car while driving it for personal use, you may have to prove to your car insurance company that it was not being used as a Turo rental at the time of the incident. Failure to do so could cause the insurance company to refuse to pay the claim.
How Much Does Turo Insurance Cost?
These are the current insurance plans that Turo and Liberty Mutual offer for hosts. There are three plans – Basic, Standard, and Premium. For Basic plans, you’ll pay 15% of your rental fee for insurance coverage. On Standard plans, the fee is 25%. Premium is 35%. Below are the coverage details for each plan.
| Coverage | Basic | Standard | Premium |
|---|---|---|---|
| Liability Limits | $1,000,000 | $1,000,000 | $1,000,000 |
| Physical Damage Limits | $125,000 | $125,000 | $125,000 |
| Physical Damage Deductible | $3,000 | $0 | $0 |
| Rental Vehicle Reimbursement | No | $30 per day | $30 per day |
| Exterior Wear & Tear Coverage | No | No | Yes |
| Loss of Income Coverage | No | No | Yes (based off vehicle’s earnings) |
| Portion of Trip Price Kept by Host | 85% | 75% | 65% |
| Turo Coverage Fee | 15% | 25% | 35% |
Car Insurance Companies that Exclude Turo
There are some car insurance companies that specifically exclude coverage for cars loaned through Turo. These insurance companies include GEICO, Progressive, and Allstate. All of these car insurance companies have been known to exclude Turo rentals for owners. However, some people have been told that their car insurance from these companies will cover their car on Turo.
It may depend somewhat on the state that you live in. Different states have different legal requirements and obligations for car insurance companies. If you are unsure if your car insurance will cover your Turo car, you should check with the insurance company. You can also check the car insurance laws in your state to discover if companies have an obligation to extend coverage for your vehicle for business purposes.
Other Frequently Asked Questions About Turo Insurance
The Bottom Line on Turo Insurance
You are not automatically insured when you rent a car from Turo. If you plan to use your car on Turo or borrow a car from Turo, you should probably consider buying supplemental car insurance from Turo. Liberty Mutual, a reputable company, provides this insurance. Even if you have car insurance for your own car or purposes, it can be a good idea to have supplemental coverage in case of damage or accident. If you get supplemental coverage, you will have the peace of mind of knowing you are covered in any incident.
