Does My Car Insurance Cover Turo?
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Turo is a great alternative to a traditional rental car for some people, but are you covered by your insurance? For both car owners and car borrowers, the car insurance for Turo can be somewhat tricky. Turo offers their own insurance coverage, but you are able to decline it if you have your own coverage. But if you decline that coverage, will your private insurance company cover you?
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 a car on Turo.
Insurance as a Borrower
If you are borrowing a Turo car, you still may 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.
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 if you can purchase additional coverage to be covered in the case of damage or loss. 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 won’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 damages to your car when you are 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.
|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, Liberty Mutual, 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.
The Bottom Line on Turo Insurance
If you plan to use your car on Turo, or you plan to borrow a car from Turo, you should probably consider buying the supplemental car insurance from Turo. This insurance is provided by Liberty Mutual, a reputable company. Even if you have car insurance for your own car or purposes, it can be a good idea to have the supplemental coverage in case of damage or accident. If you get the supplemental coverage, you will have the peace of mind of knowing that you are covered in any incident.