In recent years, peer-to-peer car rental services have become increasingly popular as a way for car owners to earn extra income by renting out their vehicles to others. Among these services, Turo is one of the most prominent and well-known options. However, if you’re considering using Turo to rent out your car or renting a car through Turo, you may be wondering about how the company handles car insurance. In this article, we’ll go over everything you need to know about how Turo works with car insurance.
What is Turo?
Before we dive into the details of how Turo’s insurance policies work, let’s review what Turo is and how it works. Essentially, Turo is a peer-to-peer car rental platform that allows car owners to rent out their personal vehicles to others when they’re not using them. People who need a car for a short period – whether it’s for a weekend trip or just for the day – can browse available cars in their area on Turo and rent one that meets their needs. Turo is available in over 5,500 cities in the US, Canada, and the UK, making it a convenient option for many renters.
Turo’s Insurance Policies
One of the most important aspects of using Turo – whether you’re renting out your car or renting a car from someone else – is understanding the company’s insurance policies. Turo offers two main types of insurance coverage for its customers: liability insurance and physical damage protection.
Liability Insurance
Liability insurance is required by law in most states and provides coverage if you’re involved in an accident and are found to be at fault. Turo’s liability insurance policy includes $1 million in liability coverage, which means that if you cause an accident while driving a Turo rental car and someone gets injured or property gets damaged, Turo’s insurance will cover up to $1 million in damages.
Physical Damage Protection
Physical damage protection – also known as collision coverage – provides coverage for damage to the rental car itself. Turo offers three levels of physical damage protection:
- Basic: You’re responsible for the first $3,000 worth of damage to the car, and Turo’s insurance will cover any additional costs.
- Standard: You’re responsible for the first $500 worth of damage to the car, and Turo’s insurance will cover any additional costs.
- Premium: You’re not responsible for any damage to the car, and Turo’s insurance will cover all costs.
It’s worth noting that Turo’s physical damage protection policies do come with some restrictions. For example, if you violate Turo’s terms of service or use the car for commercial purposes (such as driving for Uber or Lyft), you may not be covered by physical damage protection.
Other Insurance Considerations
In addition to Turo’s insurance policies, there are a few other things to keep in mind when it comes to car insurance and using Turo:
- Your Personal Car Insurance Policy: If you’re renting out your car on Turo, it’s important to let your personal car insurance provider know. Depending on your policy, they may offer additional coverage for your rental activities.
- Credit Card Coverage: Some credit cards offer rental car insurance coverage as a benefit. Make sure to check with your credit card company before renting through Turo to see if this is an option.
- International Rentals: If you’re renting a car through Turo in a foreign country, it’s important to understand the insurance requirements and restrictions in that particular location.
Final Thoughts
Overall, Turo’s insurance policies are designed to provide comprehensive coverage for both car owners and renters. It’s important to read through the details of the policies carefully and make sure you understand what’s covered and what’s not before renting or listing your car on the platform. Additionally, it’s always a good idea to check with your personal car insurance provider and credit card company to see if you have any additional coverage options available. With the right precautions and understanding of how Turo’s insurance policies work, using this peer-to-peer car rental service can be an easy and convenient way to get behind the wheel of a car when you need one.
