Who Covers Your Car When You Rent It Out on Turo?

Primary Coverage: Turo's Base Insurance

Turo offers three tiers of protection for hosts: Basic, Plus, and Premium. All tiers include liability coverage, which protects you if a renter causes injury or property damage. Liability limits vary by tier: Basic provides $1 million, Plus adds $2 million, and Premium offers $3 million. The host's personal auto insurance is not automatically waived; it remains in effect unless you opt out of it for the duration of the rental.

Supplemental Coverage: Additional Protection Options

Hosts can add supplemental coverage to increase limits or add collision and theft protection. The most common supplemental plans are:

• Collision & Comprehensive – Adds $25 k collision and $10 k comprehensive coverage.
• Vehicle Protection Plan – Covers damage to the vehicle itself during the rental.
• Liability Upgrade – Raises liability limits by $1 million per tier.

These plans are optional and require a fee that is split between host and renter.

Guest Insurance: The Renter's Role

When a renter books a vehicle, Turo automatically purchases a short‑term insurance policy that covers the renter's liability for the duration of the trip. The policy limits are:

• Basic: $1 million
• Plus: $2 million
• Premium: $3 million

Renter coverage does not include collision or theft. Those are covered by the host's supplemental plans if selected.

Claims Process and Liability Allocation

In an accident, Turo first evaluates whether the incident is covered by the renter's liability policy. If the damage exceeds those limits or involves the vehicle itself, the host's supplemental coverage steps in. The platform's claims system coordinates payouts, deductibles, and any remaining liability that may fall back to the host's personal policy if no supplemental coverage exists.

When Personal Insurance Applies

Hosts who opt out of Turo's coverage for a specific rental can rely solely on their own auto insurance. This is rare because it exposes the host to higher risk. However, if a host chooses to decline Turo's protection, their policy must explicitly cover commercial use and the higher mileage associated with rentals.

Key Takeaways for Hosts and Guests

• Turo's base liability protection is mandatory; higher limits require opting into a higher tier. • Supplemental plans protect the vehicle and increase liability limits but add cost. • Renter coverage is limited to liability; collision and theft are host responsibilities unless supplemental plans are purchased. • Claims are processed through Turo's system, with the platform acting as the intermediary. • Personal auto insurance can be used only if the host declines Turo's coverage and the policy permits commercial use.