There are all kinds of interesting scenarios that can come up that might have you asking questions about your auto insurance coverage and how it interacts with them. For example, ridesharing platforms like Uber and Lyft bring about some of these questions, as do delivery programs like DoorDash and Postmates. But one of the newest and most innovative things to take the automotive industry by storm is the idea of peer-to-peer car-sharing rental platforms.
One of the leaders in this space currently is Turo, providing a more flexible and affordable alternative to traditional rental car companies. But whether you intend to use Turo to rent a vehicle or to lend your vehicle out to renters, you might be wondering if your auto insurance coverage extends to these unique scenarios. Today we’re going to dive into that question to help you understand the intricacies of this scenario, but first let’s dive a little deeper into what exactly Turo is and how it works.
What is Turo and how does it work?
By now you’ve likely heard of Airbnb, a service that allows you to rent out your home or property for a period of time. It was introduced in 2007 and gained a lot of popularity in 2011 and skyrocketed from there. Well, think of Turo as the automotive equivalent of Airbnb — it’s a service that allows you to rent out your automobile for a period of time. While it wasn’t far behind, having been introduced in 2009, it took a little longer for Turo to gain traction and popularity, but today it’s much more prevalent.
Turo allows local car owners to list their vehicles in its system, setting all of the pertinent details on their own — including things like pricing and availability. On the flip side, people who need to rent a car can then browse a wide selection of all the vehicles that owners have listed in the area, narrowing their choices down with filters just like shopping for a new car.
Owners will receive money whenever someone rents their vehicle, but they’re responsible for pick up and delivery on their own, whatever they agree upon with the renter. Renters can book a car through the platform and are expected to pay the agreed upon rental fee and either pick up the vehicle or wait to have it delivered.
One final thing to mention is that both renters and owners will be given the option to purchase insurance directly through Turo. This coverage isn’t always comprehensive and might not offer you the same things you’ve come to expect from your own insurance, so be sure to look through what it offers closely before deciding if it’s something you want to pay for.
On the renter side of things, you can choose to decline protection or get one of three plans: minimum, standard or premier; you can also choose to get optional supplemental liability protection if you wish. On the owner side, you have many options to choose from, including:
- 60 plan
- 75 plan
- 80 plan
- 85 plan
- 90 plan
Does my auto insurance cover Turo rentals?
While plenty of auto insurance polices provide coverage for rental vehicles under collision and liability insurance, Turo unfortunately doesn’t classify its rental vehicles as traditional rental cars. This means that your insurer may exclude your coverage from Turo transactions. If you’re considering using Turo, either as an owner or a renter, your best bet is to call your insurance agent to inquire about this interaction directly.
We would be happy to help you get to the bottom of whether or not your current automotive insurance policy includes coverage for Turo rental services, or to help you get a new plan that includes these services in their coverage. Just give us a call right here at Glover Family Independent Insurance today!