How Does the Turo Car Rental App Work?

Turo is a peer-to-peer car-sharing platform where car owners rent out their vehicles and earn income. While Turo offers protection plans that include liability coverage, the details can be confusing for both hosts and guests. 

We’re breaking down how Turo car insurance works to help you avoid gaps in coverage and unexpected costs.

What Is Turo?

Turo is a car-sharing platform that allows guests to rent vehicles from car owners. The platform is an alternative to traditional car rental companies that rent out their own fleet of vehicles, such as Enterprise, Avis or Hertz. Hosts — those who rent out their cars on Turo — can earn a portion of what the guests pay as income.

Consumers can use the app to rent cars from hosts in the U.S., France, Australia, the U.K. and some of Canada’s provinces.^[1]

How Does the Turo Car Rental App Work?

After signing up on the Turo app, hosts can set prices, rules and the availability of the cars they add. Guests can search the app based on their needs including location, type of car and other filters. Afterward, guests can meet their host in person for the car hand-off, pick up the car key from a secure lockbox or remotely unlock the car using the Turo or car manufacturer’s app.

Guests must take pictures of the inside and outside of the car before they drive off with it and before returning it to ensure the car is returned in the same condition it was taken in.

Like many ride-sharing apps, guest and host users can rate the experience of renting with each other, and guests can also rate the car. These ratings may be displayed on the user’s profile.

What Are the General Requirements for Turo Car Rentals?

To better ensure security and safety, the Turo app must be used by both hosts and guests. Below, we’ll briefly cover what you’ll need to have to utilize this service.

Hosts

To list your vehicle on Turo, you must meet specific eligibility requirements and create a detailed vehicle listing to attract potential guests. Below are the general and vehicle requirements and steps to get started as a Turo host:^[2][3][4]

• Have a Turo account, a valid driver’s license and meet the age requirement (at least 21 in the US, Australia, and Canada; at least 18 in France and the UK).
• Vehicles must be registered to the host or an authorized owner, have valid license plates and be located in an eligible country.
• Have personal auto insurance that meets your state’s insurance requirements.
• Eligible vehicles must be under 12 years old (exceptions for classic/specialty cars), have fewer than 130,000 miles and a clean title with no total loss history.
• Ineligible vehicles include limousines, off-road vehicles, RVs, motorcycles and vehicles seating more than 10 people; box trucks may qualify in all states except Oregon.
• Vehicles must meet legal, safety, and mechanical standards, including a working odometer, a fair market value under $200,000 and, in New York, a valid inspection sticker.
• Upload clear photos of your vehicle, set availability and trip preferences and select a Turo protection plan for earnings and coverage.

Guests

To book a car on Turo, you must meet specific requirements based on your location, age and other factors. Below are the general requirements for guests in the US:^[5]

• Create a Turo account with a valid phone number, driver’s license and payment information.
• Be at least 18 years old; age limits apply for higher-value and specialty vehicles.
• Pay young driver fees if under 25 ($50/day for ages 18 to 20; $30/day for ages 21 to 24).
• Use a valid, permanent driver’s license (temporary licenses may require additional ID).
• Pass account verification, including driving record and background checks.

Does Turo Provide Car Insurance for Hosts and Renters?

Turo partners with Travelers Excess and Surplus Lines Company to provide guests with state-required minimum car insurance, including third-party liability coverage for bodily injury and property damage, PIP and uninsured/underinsured motorist insurance. This coverage is secondary to your own car insurance, except in Maryland and New York, where Turo’s insurance is primary in some cases.^[6]

Similarly, Turo provides liability insurance and other state-required coverages for hosts.^[7] It’s worth noting that for hosts, their personal auto insurance likely won’t cover their vehicles during a Turo booking. Most personal policies will have an exclusion clause for vehicles used in a business capacity.^[8] As a result, in a claim when the host is liable, Turo will likely pay first toward a claim.

How Does Turo’s Car Insurance Work?

Turo requires hosts to select a protection plan, which also impacts their earnings when renting out vehicles. Guests, on the other hand, can choose from optional protection plans for physical damages to the car or decline coverage entirely (at their own risk). Below, we’ll explore the differences in protection options for hosts and guests.

Hosts

Turo offers a range of protection plans for hosts, allowing you to customize your coverage based on your preferences and level of risk. The plan you choose determines the percentage of the trip price you earn and the amount of coverage available for liability, eligible damage costs and other benefits. Lower earnings typically come with higher coverage and benefits, while higher earnings mean higher deductibles and fewer benefits.^[9]

Guests

Turo offers optional protection plans to limit guests’ out-of-pocket expenses for damage to a host’s vehicle, ranging from full coverage with no out-of-pocket costs to declining protection entirely, leaving guests fully liable for repairs or the vehicle’s actual cash value. All Turo trips include third-party liability insurance to meet state requirements, with some plans offering added benefits like roadside assistance and enhanced customer support.^[6]

What Does Turo Car Insurance Cover and Not Cover?

Below, we’ll outline and discuss what coverage you can expect as a host or guest.

Hosts

The table below outlines the key features of the available host protection plans, including coverage limits, deductibles and reimbursement options. Each plan includes up to $750,000 in third-party liability insurance provided by Travelers and varying levels of reimbursement for physical damage and theft, depending on your chosen plan.^[9]

^{*Includes coverage for collisions, theft, fire, animal impacts, vandalism, falling objects}

Guests

The table below provides an overview of the coverage options available for guests booking vehicles on Turo. Each plan complies with state-mandated insurance requirements, offering varying levels of protection based on the policy terms. Notably, the Premier Plan, available only for vehicle rentals valued between $25,000 and $60,000, requires guests to be at least 21 years old to qualify.^[6]

^{*Guest still responsible for paying to repair mechanical or interior damages if liable}

Keep in mind that guests are also responsible for up to $150 per claim in claims processing costs. However, this fee can be refunded if a third party accepts liability for an accident.^[6]

Are Roadside Assistance Plans Included With Turo Car Insurance?

Turo offers 24/7 roadside assistance to guests in case of an accident, breakdown or other issue you might experience using your rental. While Turo will typically cover the cost of dispatching roadside assistance, you may still be responsible for covering service costs if the dispatch resulted from your carelessness, abuse or violation of Turo policy while behind the wheel. You may also be responsible for the cost of repairing or replacing a flat tire unless you purchase the Premier protection plan option.^[10]

How Much Does Turo Car Insurance Cost?

Guests pay for each plan type based on the percentage of the total trip cost. Here’s a quick breakdown of those costs:^[11]

For hosts, Turo protection plans have no additional costs. However, the plan you choose will affect how much of a cut you receive from the money made from a Turo booking. Hosts may want to consider choosing the plan with the highest deductible they’re willing to pay in the event of any physical damage, car theft or a total loss to maximize their earnings.

What Happens if There Is Damage to My Car While It’s Rented on Turo?

Hosts must file a claim with Turo for physical damage reimbursement, including photo documentation taken within 24 hours of the trip's return.^[9] Additionally, evidence like a police report or third-party testimony can help verify that the damage happened during the rental period. Alternatively, if the following conditions are met, the host may also qualify for physical damage reimbursement:^[7]

• Guest utilized Turo Go app to lock or unlock car
• Host or their designee wasn’t physically present when the car reservation began
• Guest did not take qualifying pictures of the car at the start of their reservation

If the host decides to seek reimbursement for necessary repairs or vehicle replacement, they must have photo documentation of expenses or dated receipts. Depending on the cause of reimbursement, payments may be made by direct deposit, check, directly to a repair shop or directly to the host.