This article is specifically for vehicles covered by a Turo protection plan. Vehicles provided by Commercial Host, and guest of those vehicles, are subject to the terms and conditions of the host’s commercial liability and comprehensive and collision plans. Turo makes no claims as to the limits, deductibles, or costs of non-Turo plans. Please contact the listing page and/or vehicle host directly for plan and pricing details.
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Turo protects hosts, guests, and third parties, addressing both liability and physical damage exposures, on trips where the vehicle is insured via Turo’s third parties insurance partners. This article below focuses primarily on guests, while many host-specific items are discussed in this other article for host protection plans.
- Liability: All reservations in Canada are covered by a $2M liability insurance policy (including accident benefits) provided by Turo’s insurance partner Intact Financial Corporation regardless of the protection plan you selected for your trip. More information on the liability and accident benefits coverage can be found here.
- Physical Damage protection covers two categories of perils: comprehensive and collision. Financial responsibility for physical damage to the shared vehicle will be dependent on the physical damage protection plan that is chosen by the guest when the vehicle is booked.
The guest is responsible to return the car on time and in essentially the same condition it was in when they first received it. The guest is financially responsible for all physical damage unless they provide documentation of pre-existing damage. The guest may document pre-existing damage by uploading Trip Photos at the beginning of the trip, or document an agreement with the host regarding pre-existing damage by using our “Trip Checklist” or similar means. Any physical damage protection that Turo offers is “secondary” or “supplemental”, as further detailed at the end of this FAQ article.
The guest can choose from three (3) options to satisfy his or her physical damage obligations where the vehicle is insured via Turo and not through a commercial rental policy offered by the host.
- “Premium” Plan: The guest’s out-of-pocket exposure is limited to payment of a deductible of $500. When damage is reported, the guest will be charged $500, and if the total costs (direct costs of damage, plus all “Related Costs”, as defined below) are less than $500, the guest will be refunded the difference.
- “Basic” Plan: The guest’s out-of-pocket exposure is limited to a payment of a deductible of $3000, under the same structure described in the Premium plan.
- “Decline Coverage” Plan: The guest’s financial responsibility is essentially unlimited, and is bounded only by the actual cash value of the car, plus all Related Costs. This means that if the car is lost, stolen, or damaged so extensively that the expected cost of repairs exceeds 75% of the actual cash value, the guest is responsible to pay the entire actual cash value of the car, plus all Related Costs, minus any residual salvage value.
Coverage via personal insurance or credit card. Many people incorrectly believe that they have full coverage through a personal insurance policy or credit card. Please carefully check the terms and conditions of those policies and consult with your credit card company before assuming that you are covered and selecting the “Decline Coverage” option -- it is highly unlikely that you would be covered by any credit card insurance when you book cars through the Turo marketplace. Please also see this FAQ entry on the topic.
Terms of Service violations. For both the Premium and Basic plans, if the guest or any of their Approved Drivers has violated the Terms of Service, engaged in any Prohibited Uses or otherwise intentionally, recklessly, or with wanton disregard, misused the car, the deductible limits described above will not apply and the guest will be liable for physical damage up to the actual cash value of the car, in addition to all Related Costs.
Mechanical or Interior Damage. Furthermore, if during the reservation, there is damage caused to the interior of the vehicle or mechanical damage caused (not normal “wear and tear”), the protections described above do not apply, and the guest will be liable for the full cost of the repairs or replacement, as well as Related Costs.
Related Costs. "Related Costs" may include all costs and fees permitted by law, including but not limited to, estimation or appraisal costs, storage fees, towing fees, repair or replacement costs, registration or transfer taxes, claims processing costs and all similar or associated costs, minus any residual salvage value that is collected. Claims processing costs vary, but are typically up to $500 per claim. If a third party accepts total fault for the claim and that third party’s insurer processes it on behalf of the host without substantial processing by Turo’s third party claims administrator, the guest will be refunded the claims processing fee.
Turo protection is secondary. The Premium and Basic plans are “supplemental” or “secondary” to any existing coverage the guest may have available through other sources (whether through a credit card, personal automobile, or other policy). In practice, this means that the guest is primarily liable, but can satisfy their obligations through these other sources, such that Turo will first collect the relevant deductible directly from the guest, and then will seek reimbursement (“subrogation” in insurance terms) from the guest’s other sources for the total amount of liability.
If you have selected to book a vehicle with a Commercial Host who is providing commercial rental liability insurance directly to you, none of the above applies. Please refer to the listing or contact the host to understand any insurance or protection available to you and any related fees.
If you have additional questions regarding selecting among these options, please consult your insurance professional, or contact us at support.turo.com, and we will direct you to our insurance broker.