Turo Insurance: Is it more comprehensive than your own policy?

While Turo doesn't provide car insurance directly, it offers protection plans, including liability coverage and physical damage reimbursement. Plans are available for both hosts and renters.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: May 4, 2022

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Here's what you need to know...

  • While Turo doesn’t provide insurance directly, they offer third-party liability insurance and physical damage reimbursement to hosts and renters
  • Turo’s liability coverage includes up to $750,000 in damages
  • Turo’s physical damage reimbursement covers all physical damage to a host’s vehicle from a collision or other event, such as a fire, vandalism, or falling objects

If you’re here, there’s a good chance you’ve already heard of Turo, a carsharing company that some describe as Airbnb for car rentals. Whether you’re considering using Turo for your next vacation ride or want to make passive income as a Turo host, you likely have some questions about Turo Insurance coverage. Does my car insurance cover Turo? What’s the best insurance for Turo hosts? Don’t worry, we’ll cover everything you need to know.

Turo offers its coverage for renters and hosts, offering three different levels for renters and five tiers for hosts. Turo car insurance is straightforward for renters: more expensive plans mean better coverage. However, Turo’s options for hosts are slightly more complicated.

Essentially, hosts receive coverage based on how much income they’re willing to share with Turo. For example, picking the plan with the best coverage means that a host would take home only 60% of what renters pay for a trip. If you choose the plan with the least coverage — and a $2,500 deductible — you would earn 90% of what renters pay for driving your car, and the remaining 10% would go to Turo.

Depending on your insurance company, you may not need to purchase insurance from Turo as a renter, and some car insurance companies may be able to supplement your coverage as a host. If you’re planning on renting your car to other drivers through Turo, contact your insurance company first to determine if you need to update your policy.

This article will overview how Turo’s insurance works for both hosts and renters. We’ll also answer some common questions about what Turo covers, how much it costs, and how it works alongside coverage from car insurance companies, so you can decide if renting or hosting with Turo is right for you.

How does Turo’s insurance work for hosts?

Turo provides two types of coverage for hosts: liability insurance — covering up to $750,000 in damages or medical bills — and a guarantee of reimbursement for physical car damage.

Keep in mind that Turo itself does not provide insurance. Turo gives hosts liability coverage through a third-party insurance company, and the reimbursement for physical damage is not insurance at all — Turo describes it as a “contractual reimbursement.” Turo also requires hosts to carry their state’s minimum amount of required insurance since Turo coverage only applies when a host’s vehicle gets rented.

According to Cars.com, many of the vehicles available for rent through Turo are economy cars five years old or older. Renters can also find luxury and sports cars through the service.

While all of Turo’s coverage options for hosts include liability coverage and physical damage reimbursement, plans differ regarding deductible amounts and how the loss of a vehicle during repair gets treated. Take a look at the table below to overview the different plans Turo hosts can choose.

PlanPercentage of Rental Payments Host ReceivesLiability Insurance LimitDamage Costs Paid by TuroDeductibleOther Features
60 Plan60%$750,000100% $0Exterior wear and tear reimbursement and either payments for your lost hosting income during repair or $50 a day replacement vehicle reimbursement during repair (for up to 10 days)
75 Plan75%$750,000100% (after deductible)$250$30 a day replacement vehicle reimbursement during repair (for up to 10 days)
80 Plan80%$750,000100% (after deductible)$750None
85 Plan85%$750,000100% (after deductible)$1,625None
90 Plan90%$750,000100% (after deductible)$2,500None
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The main trade-off in each plan is between how much of the rental payment Turo takes — rather than the host — and how much hosts need to pay out if they need repairs. For example, with the 60 Plan, Turo takes a significant amount of each rental payment, but hosts get complete coverage for any damage while their car is rented.

The 90 Plan is at the other end of the spectrum, with Turo taking a modest 10% but requiring hosts to pay a steep $2,500 deductible before their coverage kicks in. Knowing which plan is right for you depends on how much you’re comfortable risking financially.

Turo also offers an insurance plan for car rental companies that provide commercial rental insurance. While Turo rental insurance offers no protection or reimbursement options, hosts that select this option receive 92.5% of all rental payments.

What does Turo insurance cover?

For hosts who choose one of Turo’s standard vehicle protection plans, Turo includes liability coverage and physical damage reimbursement. They are similar to what you might find in a full coverage policy from a personal car insurance company.

Here’s an overview of what liability insurance from Turo will cover:

  • Up to $750,000 in damages that a renter driving your vehicle would otherwise be responsible for covering
  • Property damage such as damage to another vehicle, fence, or mailbox
  • Medical expenses for a pedestrian or other driver injured in an accident

Here’s what Turo’s physical damage reimbursement includes:

  • 100% of eligible costs to a host’s vehicle damaged while being rented
  • Damage from a collision (two cars hitting each other or one car hitting another object)
  • Damage or loss from an event other than a collision, such as fire, theft, vandalism, falling objects

How much does Turo insurance cost?

So, how much is Turo insurance? Turo doesn’t charge hosts a set rate for its protection plans. Instead, Turo takes an amount of the rental payment — between 10% and 40% — each time someone rents a host’s car. Protecting your vehicle while you rent it to other drivers is free with Turo, but you have to give Turo a percentage of what you earn.

Remember that you’re still required to pay for an insurance policy separate from Turo to drive your car legally in most states. Depending on your insurance company, you may need commercial auto insurance to rent your car to other drivers. Always contact your insurance company before renting one or more of your vehicles as a Turo host.

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How does Turo insurance work for renters?

For renters, the cost of insuring a vehicle you rent through Turo and the amount of coverage provided depend on which protection plan you select:

  • Decline protection. If you have insurance that covers you while renting a Turo vehicle, you can decline protection and receive the minimum third-party liability coverage.
  • Minimum plan. For 18% of the trip price — 25% for trips less than $250 — you’ll receive a minimum amount of third-party liability coverage and a physical damage contract limiting your responsibility to $3,000.
  • Standard plan. For 40% of the trip price, you’ll receive the minimum third-party liability coverage and a physical damage contract limiting your responsibility to $500.
  • Premier plan. For between 65% and 100% of the trip price, you’ll receive third-party liability coverage with a $750,000 limit and a physical damage contract limiting your responsibility to $0.

If you choose any of the options above — other than declining protection — any personal insurance coverage outside Turo will apply before Turo’s protection kicks in.

What to Remember About Turo Insurance

While Turo doesn’t provide insurance directly, they offer third-party liability insurance and physical damage reimbursement to both hosts and renters. Hosts can choose from one of five plans based on how much rental income they’re willing to share with Turo. Renters can select one of three plans or decline protection. More expensive renter plans have a lower deductible.

Turo’s liability coverage includes up to $750,000 in damages and reimbursement covering 100% of physical damage to a host’s vehicle from a collision or other event, such as fire, vandalism, falling objects, etc. The amount of coverage is the same for both hosts and renters.

Turo requires hosts to maintain an insurance policy for their vehicle separate from their Turo coverage because Turo’s protection plans only apply while the vehicle is rented. Renters don’t need insurance outside Turo’s protection plan to rent a car through Turo, but a renter’s insurance coverage will kick in before Turo’s coverage after an accident.

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