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:
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.
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.
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.
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% |
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.
Does Turo offer any insurance discounts?
Turo does not offer direct discounts on its insurance coverage and protection plans for hosts or guests. However, Turo does offer some perks and benefits for hosts who list their cars on Turo, such as discounts on car cleaning services, car maintenance, and small fleet insurance.
Turo also offers a loyalty program for guests who rent cars from Turo frequently. Guests can earn points for every dollar they spend on Turo and redeem them for rewards such as travel credits, discounts on future trips, and free upgrades.
Additionally, Turo occasionally offers promo codes and coupons for hosts and guests to save money on their trips or listings. These promo codes and coupons may be available on Turo’s website, social media, or partner sites.
Does GEICO cover Turo?
GEICO does not cover Turo rentals for either hosts or guests. GEICO considers Turo as a commercial use of your car, not personal use, and therefore your personal auto policy does not apply when you rent a car through Turo or rent out your vehicle to others on Turo.
If you are a host, you need a commercial or personal policy that allows you to rent out your car on Turo. GEICO does not offer such policies, so you may need to switch to another provider or rely on Turo’s insurance coverage.
If you are a guest, you must purchase a protection plan from Turo or use your own commercial policy if you have one. GEICO’s standard car rental coverage or optional policies do not extend to Turo.
Which credit cards cover Turo?
Most credit cards do not offer coverage for Turo rental cars, as they consider Turo a peer-to-peer car-sharing platform, not a rental car company.
Some credit cards that do not cover Turo rental cars include the Chase Sapphire Reserve and Chase Sapphire Preferred Card, the Capital One Venture Rewards Credit Card, and most American Express cards.
Some credit cards that may cover Turo rental cars include the Chase Freedom Flex and Chase Freedom Unlimited, the Citi Premier Card and Citi Prestige Card, the United Explorer Card, and some Mastercard World Elite cards. However, the coverage may vary depending on the card issuer and the terms and conditions of the policy, so you should always check with your card provider before renting a car through Turo.
What should you do if you get into an accident in a Turo car?
If you get into an accident in a Turo rental, you should follow these steps:
1. Ensure that you and your passengers are safe and not injured.
2. Contact emergency services if necessary.
3. Call the Turo 24/7 emergency line at 1-866-735-2901 to report the accident.
4. Contact the host and let them know what happened.
5. Exchange insurance information with the other driver(s) involved in the accident.
6. Take photos and gather information about the accident, such as the location, time, and date.
7. Contact your insurance provider or Turo’s insurance with any questions or concerns.
Depending on the situation, you should be able to file a claim with the at-fault driver’s insurance company or Turo’s insurance provider.
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.
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.