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Car Insurance for Turo Hosts: What You Need to Know

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If you’ve got a cool car, renting it out on Turo can be a great way to make extra money. It’s kind of like Airbnb for cars, and the platform offers insurance and protections for car owners. But you’re responsible for carrying your own car insurance when someone drives the vehicle outside of Turo trips.

Key takeaways

  • Turo requires all hosts to purchase an insurance and protection plan.
  • It also requires you to carry a personal car insurance policy that meets state requirements for coverage.
  • Your personal policy won’t cover your car while it’s being rented on Turo.
  • If you only use the vehicle for Turo rental, you can purchase limited insurance to cover the car between rentals.

What type of insurance does Turo provide for hosts?

Turo has five levels of protection it offers “hosts” — its term for people who rent out their cars on the Turo platform. Protection plans are named based on the percentage of the trip proceeds you get to take home after insurance and protection costs — 60, 75, 80, 85 and 90.

The 60 plan offers the most protection and the smallest take-home pay, whereas the 90 plan offers the least protection but the largest profit. You should carefully review the plans to make sure you balance the level of coverage you need with how much you hope to make.

All plans offer up to $750,000 in liability insurance — except in some states and at some airports that may require additional coverage — provided by Travelers. Turo also provides reimbursement for repairs or a total loss of the vehicle up to $200,000, with some restrictions.

Vehicle reimbursement is not insurance — it’s a contract reimbursement — but it essentially amounts to the same thing.

Here’s a snapshot of the insurance and protection plans Turo offers.

Turo host protection plans

Plan60 Plan75 Plan80 Plan85 Plan90 Plan
Host take60% of the trip price75% of the trip price80% of the trip price85% of the trip price90% of the trip price
Deductible$0$250.00$750.00$1,625$2,500
3rd party liability insuranceUp to $750,000Up to $750,000Up to $750,000Up to $750,000Up to $750,000
Vehicle reimbursement100% of eligible damage up to $200,000100% of eligible damage up to $200,000, after deductible100% of eligible damage up to $200,000, after deductible100% of eligible damage up to $200,000, after deductible100% of eligible damage up to $200,000, after deductible
Replacement vehicle reimbursement$50 a day (max 10 days), or $500 if a total loss$30 a day (max 10 days), or $300 if a total lossNot includedNot includedNot included
Exterior wear and tearTuro takes care of eligible wear and tearNot includedNot includedNot includedNot included

Does my personal insurance cover me while using Turo?

Your personal auto insurance policy typically won’t cover your car when it’s actively being rented on Turo. In fact, most car insurance companies strictly prohibit that kind of coverage because renting your car out is a business purpose. In any case, Turo requires you to purchase an insurance and protection plan to be eligible to rent your car out on its platform.

How much does Turo’s host insurance cost?

How much you’ll pay for Turo insurance and other protections depends on which plan you pick and costs anywhere between 10% to 40% of the total trip price. For example, if someone rents your car for a week and the cost of the trip is $2,000, you would take home $1,200 if you have the 60 Plan, or 60% of the trip price. If you had the 90 Plan, you would take home $1,800, or 90% of the trip price.

If you want to maximize your earnings while still having the majority of protections, you might opt for the 75 Plan. With that plan, you could take home $1,500 (on a $2,000 trip), only have a $250 deductible and still retain most of the coverage.

Best insurance options for Turo hosts

Turo only covers your car when it’s on a trip, so it’s important to find the right coverage for times when your car isn’t being rented out.

Best for insurance discounts

Progressive

4.5
★★★★★

Finder score

Go to site
on Pretected's secure site
Read review
TelematicsSnapshot
Gap insuranceLoan/lease coverage

Best for a marketplace

Pretected

5
★★★★★

Finder score

Go to site Read review
TelematicsVaries by provider
Gap insuranceVaries by provider

Best for low rates

Geico

4.5
★★★★★

Finder score

Read review
TelematicsDriveEasy
Gap insuranceNo

Best for Turo car, no personal use

American Business Insurance

Finder score

TelematicsNo
Gap insuranceNo

Best for multiple Turo cars

Tint

Finder score

TelematicsNo
Gap insuranceNo

Best customer experience

State Farm

4
★★★★★

Finder score

TelematicsDrive Safe and Save
Gap insuranceNo

How we chose these insurers

Finder’s insurance experts analyzed dozens of insurance providers to find ones that offer the best options for Turo hosts — whether they drive the car for personal use or not. We ultimately chose ones that specialized in Turo cars (or other car-sharing services) or had competitive rates, multiple discounts and good satisfaction ratings.

Some of the criteria we evaluated included:

  • Ratings and reviews
  • Overall discounts offered
  • Pricing
  • Telematics programs
  • Roadside assistance
  • Claims process
  • Mobile apps
  • Overall financial strength and performance

Finder also maintains strict editorial integrity and independence. Our content and suggestions are fair, accurate and trustworthy, and our advertisers or partners don’t influence our opinions. To learn more, check out our editorial guidelines here.

How does the claims process work, and how long does it take?

First of all, hosts and guests have the option to resolve vehicle damage between themselves without ever involving Turo. In some cases, this may be the fastest and most cost-efficient resolution.

However, if your vehicle is damaged by a guest and you want to file a claim, here’s to expect:

  1. You report the damage within 24 hours.
  2. A claims associate gets in touch with you within 24 hours.
  3. Turo takes up to three days to determine if you’re eligible for reimbursement under your protection plan.
  4. Turo sends your claims to a third-party appraiser if it’s eligible.
  5. The appraiser may be able to assess the claim by photo evidence within a day. Or, they may need to inspect the vehicle in person, which could take five to seven days to complete.
  6. Turo issues you a payment for the cost of repairs minus your deductible. It may send the money directly to the repair shop if you use one of its partners, or you can opt to receive the funds in cash.

The whole process could take up to 30 days. Depending on your plan, you may be eligible for replacement vehicle reimbursement or host loss of income.

What if the renter doesn’t return my car on time or at all?

If a guest can’t return your car on time for any reason, they must request an extension through the Turo system as soon as possible (or within 24 hours from the time the trip has ended), and it has to be accepted by you. If they don’t get approval, you can charge for additional usage and related fees. In addition, Turo may opt to cancel the guest’s protection plan.

If the guest hasn’t returned your car within 24 hours of the scheduled end of the trip and hasn’t requested an extension, Turo follows up with the renter for you. Turo asks you to wait 48 hours for them to review the issue and get back to you.

Bottom line

Renting your car out on Turo can be an easy way to bring in extra income, but you need to make sure you’re fully covered in any situation. Turo has multiple protection plans to cover you while your car is on a trip, but you’ll need to have insurance that protects the vehicle at all other times.

Get the cheapest quotes for your car

Compare providers in your area.

Frequently asked questions

Do I need separate insurance for Turo?

You don’t need to purchase separate insurance if you rent your car on Turo. In fact, you’re required to choose one of Turo’s plans for insurance and other coverage.

Do Turo renters need their own insurance?

No, you don’t need to have your own insurance to rent a car from Turo. You can purchase insurance from Turo, just like when you rent a car from Avis, Alamo or any other car rental agency. Turo has three plans for guests, which include liability insurance and a physical damage contract. Costs for guest protection plans run from 18% to 65% of the trip price.

Can I use my personal insurance when renting a car from Turo?

With most insurance companies, your personal policy extends the same coverage to cars you rent, including Turo. However, it’s still a good idea to check with your insurance agent beforehand, as some insurers don’t cover peer-to-peer car rentals.

Can I host for Turo with a car I’m leasing?

Yes, Turo allows you to host with a leased car as long as your lease contract allows using it on a car-sharing platform. To prevent delays after a claim, confirm these details with the company leasing the vehicle before listing the car with Turo.

Megan B. Shepherd's headshot
To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.
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Written by

Writer

Lacey Stark is a freelance personal finance writer for Finder, specializing in banking, loans, investing, estate planning, and more. She has 20 years of experience writing and editing for magazines, newspapers, and online publications. A word nerd from childhood, Lacey officially got her start reporting on live sporting events and moved on to cover topics such as construction, technology, and travel before finding her niche in personal finance. Originally from New England, she received her bachelor’s degree from the University of Denver and completed a postgraduate journalism program at Metropolitan State University also in Denver. She currently lives in Chicagoland with her dog Chunk and likes to read and play golf. See full bio

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