You will need car insurance if you use the turo car rental platform, which includes car rental hosts and guests. however, tour coverage (formerly known as relay travel) works differently than typical auto insurance, and you have a few choices about how much coverage you can buy, the price of which increases the more coverage you choose.
how turo insurance works for hosts
turo provides five levels of insurance coverage to hosts, people who own cars and allow others to rent them through the turo platform:
Reading: How does insurance work with turo
You will choose one of these insurance levels when you make your car available through the turo website or app. All are provided through Liberty Mutual, one of America’s leading companies. insurance company.
All five levels of tour insurance coverage include $750,000 of liability protection, which covers you in the event you’re at fault in an accident. This coverage is essential, even if you are not going to drive the car. for example, it could apply if improper maintenance causes an accident, in which case you are likely to be legally responsible.
all plans also include auto physical damage coverage, up to $125,000 after a deductible that adjusts to the plan level you select.
Plans 70 and 60 also include some more extras.
the cost of insurance for tour hosts
The cost of each level of insurance is based on a percentage of the total amount you charge to rent your vehicle. the number in the name of each plan represents the percentage of the price of each trip that the host will keep with that level of coverage. the remaining percentage is the rate charged per tour.
Please note that the fee charged per tour is the total amount you must give to the tour for renting on their platform; it also covers the cost of getting your car listed.
does my personal car insurance work with turo?
Standard auto insurance policies for personal use, meaning everyday driving to work and other errands, will probably never cover your vehicle as long as someone else rents your car on tour. Those policies are designed and priced to cover a private driver, not a car driven by a new stranger every weekend. so you can’t just decline tour coverage and rely on your own personal policy.
Even though your personal policy won’t cover you while you rent your car, you’ll still need to purchase your own auto insurance policy. Nearly every state requires auto insurance to register and drive a private vehicle, and Turo also requires you to have your own coverage. however, you do not need to purchase any special coverage from your regular insurer.
Sadly, we couldn’t find any evidence of any turo-friendly auto insurers. Agents from Progressive, Geico, and State Farm told us that they will not insure vehicles for car-sharing services, such as Turo. even liberty mutual, which provides the corporate tour policy itself, does not allow sharing in personal insurance, but it does in some commercial policies.
alternative for professionals: commercial car insurance
turo gives you the option to opt out of their insurance program entirely and instead purchase your own commercial auto insurance policy. People who own cars exclusively for tour rentals, especially if they have multiple vehicles, may find this to be the right option for them. If you select this option, Turo will only keep 7.5% of the amount you charge guests for renting your car.
For example, you’ll be responsible for helping your guest with roadside assistance if their car breaks down, which you take care of when you use your host insurance. You will also need to send proof of your business insurance to turo to waive your insurance policy.
how does tour insurance work for guests
People who rent a car on tour also need insurance. You are not necessarily required to purchase tour coverage, but you should understand what you are getting when you purchase tour protection and the pros and cons of the above coverage.
turo offers three insurance coverage packages for drivers: minimum, standard and premier.
You can also choose to “decline” the insurance, though that’s a bit of a misnomer: you still receive the state’s minimum liability protection, as it would be illegal to drive without it. however, by choosing the “reject” option, you are fully responsible for the cost of repairing or replacing the car if it is damaged, lost or stolen. the primary option is not available if the vehicle is worth more than $25,000.
Unlike an auto insurance plan for a regular car, tour insurance doesn’t include extras like personal injury protection or uninsured motorist coverage, except in states where it’s required by law.
cost of tourist insurance for guests
The cost of each level of insurance is based on the cost of the car you rent. premium protection doubles the cost of your rental, standard adds 40% and minimum adds 15-25%.
Do I need to take out insurance when I rent in a tour?
You don’t need to buy tour car insurance when you rent a car; you decide. but whether you must depends on the car insurance coverage you already have and whether you can afford to replace the car if it breaks.
The first thing to know is that damage to your rental car while driving is highly unlikely to be covered by any other source of protection – your own existing auto insurance policy won’t cover it, and credit card benefits usually they won’t either. . This means that any damage to the car while it is in your care, up to the full cost of the vehicle, will be your responsibility if you decline the turo protection plan.
Liability coverage is just as important, though you may already have some coverage if you have an auto insurance policy on your own vehicle, as well as if you’ve purchased third-party coverage. In this case, your liability coverage will likely apply no matter what vehicle you’re driving. in fact, tour liability coverage is considered secondary, so you’ll have to exhaust your own limits before it kicks in.
Also, each car on tour carries the minimum required coverage for the state you rented it in, even if you choose the “decline” option.
can I use my credit card rental coverage?
Some credit cards include free Loss Damage Waiver (LDW) coverage as a benefit of using the card.
Each benefit of credit card rental insurance works slightly differently, but you should not assume that your American Express credit card or any other credit card will protect you while driving a car.
Most credit card car rental benefits only apply when you rent from a car rental company, such as budget or enterprise, and some specifically exclude peer-to-peer car rental companies, such as turo . the only way to be sure is to check with your credit card company.
what is a full auto insurance score?
one way turo assesses the trustworthiness of potential guests is by looking at their insurance score, also called a credit-based insurance score. This number is used by auto and home insurers to assess the strength of your credit and is based on your credit history.
Car insurance scoring criteria include things like how much debt you owe and whether you pay your bills on time. turo does not create the auto insurance score directly. the number is created by transunion, a credit reporting agency.
how to work with a commercial host
Some cars in tour are owned by small car rental companies, rather than individuals operating on their own. The main difference for guests is that these companies use their own commercial auto insurance policies, and you won’t be able to purchase any of the tour coverage options listed above.
Some commercial hosts include insurance fees as part of the daily rate, while others offer a separate charge. if the car insurance is charged separately, it will be detailed in the body of the rental contract; check with your host if you’re not sure how you’re covered. You’ll also work directly with your host if something goes wrong with your vehicle during your rental, instead of filing a claim through tour insurance.
sources: tour insurance for guests tour vehicle protection for hosts