Guest protection plans including insurance | Canada

Terms to know

• Guest - Refers to the primary guest tied to the trip booking. We also use it to refer to any Turo authorized secondary drivers. 
• Physical damage - Any damage to the vehicle, including Mechanical Damage and Interior Damage. 
• Related Costs - These include all costs and fees resulting from damage of any kind to the Vehicle during the booked trip. Cost and fees include but are 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’s collected.
• Vehicle - Refers to the vehicle booked during the applicable reservation.

Third-party auto liability insurance  

All protection plans include coverage under a third-party automobile liability insurance policy purchased from Intact Financial Corporation (“Intact”) for Guests in Alberta, Nova Scotia, Ontario, and Quebec, and Insurance Corporation of British Columbia (“ICBC”) for Guests in British Columbia. 

Third-party coverage

Subject to terms, conditions, and exclusions, the Intact and ICBC policies provide Guests with the following kinds of coverage. This coverage is active while they’re driving the booked vehicle during the booked trip.   

• Bodily injury and property damage to third parties:
• The Intact  and ICBC policies insure Guests against liability to third-parties for bodily injury and property damage resulting from the use of the booked vehicle during the booked trip, up to $2,000,000. This coverage cannot be declined.
• You can read more information on the liability and accident benefits coverage provided by Intact. You can read complete details of all insurance policies, including the policy offered by ICBC, in the PDF attachments at the bottom of this article. 
• Note, however, that it does not apply to vehicles that are booked on Turo from a Commercial Host.

If Guests have their own personal automobile policy, depending on various factors such as applicable laws, where they book their vehicle, and/or where the accident or damages to the vehicle occur, the Guest’s policy may be considered primary in the event of a claim.  

Financial responsibility for physical damage to the Vehicle 

Protection plans available on Turo also address the primary Guest’s liability for any damage to the booked vehicle that takes place during the booked trip.

• The primary Guest is responsible to return the Vehicle on time and in essentially the same condition it was in when they first received it. 
• The primary Guest is financially responsible for all Physical Damage or theft to the Vehicle, as well as Related Costs. The primary Guest is financially responsible regardless of who is found to be at fault for the damage. 
• Claims processing costs vary but are typically up to $150 per claim. 
• For example, if there’s Physical Damage to the Vehicle during the period of the booked trip, the primary Guest will be financially liable for the costs of repair, plus Related Costs.
• As another example, if there’s Physical Damage to the Vehicle that results in it being a total loss, then the primary Guest will be financially liable for the actual cash value of the Vehicle, plus Related Costs, minus the salvage value, if any.

Mechanical or Interior Damage. The contractual limitation of liability available under the Premier, Standard, and Minimum plans doesn’t apply to damage caused to the interior of the vehicle or mechanical damage caused during the booked trip (not normal “wear and tear”). Regardless of which protection plan the primary Guests chooses, the primary Guest is financially liable for the full cost of the repairs or replacement, as well as Related Costs, for interior damage or mechanical damage caused during the booked trip.

Primary Guests can protect themselves against an allegation that damage to the Vehicle occurred during the period of the booked trip. To do so, they should document with photos the condition of the Vehicle, including any existing damage, at the start of the booked trip. They should upload the photos to Trip Photos at the start of the trip. 

Guest coverage

Guests may be insured against Physical Damage to the Vehicle that occurs during the period of the booked trip under their own automobile policies. Even if the third-party liability insurance coverage under the Guest’s own car insurance doesn’t apply, the first-party liability coverage for physical damage (as defined in that policy) may. When a primary Guest books a vehicle on Turo, the primary Guest agrees that if any Physical Damage to the Vehicles occurs during the booked trip, the primary Guest will work with Turo to make a claim for coverage under any policy of insurance that applies to the loss.  

Guest’s responsibility for damage to the vehicle

Primary Guests can contractually limit the amount that they’re legally obligated to pay out of their own pocket in the event there’s Physical Damage to the booked car that’s not covered, or fully covered, by the primary Guest’s own insurance. Primary Guests may choose from four (4) options.

1. “Premier” plan: Under the Premier plan, the primary Guest isn’t responsible for paying out of pocket costs for reported Physical Damage (other than eligible Mechanical or Interior Damage) to the Vehicle. When Physical Damage is reported, the primary Guest won’t be financially obligated for the cost of the damage and will pay no deductible. When Mechanical or Interior Damage is reported, the primary Guest will be charged for eligible damage once a final assessment of the damage cost has been made.  
   A Guest who chooses the Premier plan is still responsible for costs unrelated to liability or physical damage costs. These may include such costs as excess mileage costs, parking tickets/tolls, and unremitted fuel costs. The Premier plan isn’t available for trips booked in Deluxe or Super Deluxe vehicles. 
   *Note, third party liability coverage under the Intact policy is still secondary for Guests who have other applicable coverage under the Premier plan. 
2. "Standard" plan: Under the Standard plan, the amount that the primary Guest is liable to pay out of their own pocket for Physical Damage (other than Mechanical or Interior Damage) to the Vehicle during the booked trip, plus Related Costs such as claims processing fees (and after exhaustion of any other applicable insurance), is contractually limited to $500. When damage is reported, the primary Guest will be charged a $500 damage deposit. If the final damages plus all Related Costs, minus insurance collected, are below the deposit amount, or the claim is not covered, the difference will be refunded. 
3. "Minimum" plan: Under the Minimum plan, the amount that the primary Guest is liable to pay out of their own pocket for Physical Damage (other than Mechanical or Interior Damage) to the Vehicle during the booked trip, plus Related Costs such as claims processing fees (and after exhaustion of any other applicable insurance), is contractually limited to $2,000. When damage is reported, the primary Guest will be charged a $500 damage deposit unless there was major damage (non drivable) to the Vehicle, in which case a $2,000 damage deposit will be charged. If the final damages plus all Related Costs, minus insurance collected, are below the deposit amount, or the claim is not covered, the difference will be refunded. 
4. “Decline Physical Damage Protection” plan: Under this plan, the primary Guest’s financial responsibility for damage to the Vehicle isn’t contractually limited at all. When damage is reported, the primary Guest will be charged a $500 damage deposit unless there was major damage (non drivable) to the Vehicle, in which case a $2,000 damage deposit will be charged. If the final damages plus all Related Costs such as claims processing fees, minus insurance collected, are below the deposit amount, or the claim is not covered, the difference will be refunded. 
   The primary Guest is legally liable for the cost of repairs or, in the event of a total loss, the actual cash value of the car, plus all Related Costs such as claims processing fees, whether the primary Guest has their own insurance or not, and regardless of fault. For example, if the Vehicle is lost, stolen, or damaged during the booked trip so extensively that the expected cost of repairs exceeds 75% of the actual cash value, the primary Guest is legally liable to pay the entire actual cash value of the car, plus all Related Costs, minus any residual salvage value.
   If the primary Guest’s liability is not insured, the primary Guest is obligated to pay that money from his or her own pocket. If the primary Guest has applicable insurance, the primary Guest is obligated to pay the difference between the loss and the amount paid by the primary Guest’s insurer.

The contractual limitation of liability included in the Standard and Minimum protection plans:

• ONLY applies to the amount the primary Guest is obligated to pay in excess of insurance that is available from the Guest and has been collected; and

The contractual limitation of liability included in the Premier, Standard, and Minimum protection plans:

• ONLY applies if the primary Guest and each approved secondary driver abides by the Terms and Conditions;
• ONLY applies to Physical Damage that is not Mechanical or Interior Damage
• Does not depend on fault.

Important considerations   

Know your own coverage

• If you have an auto liability insurance policy, find out what your insurance covers when you’re driving a car booked through Turo. 
• Don’t assume that your personal auto insurance policy or credit card coverage applies to person-to-person car sharing trip bookings in the same way it applies to traditional rental car bookings.
• Carefully check the terms and conditions of your policies and consult your own insurance agent before you make a decision about which Turo protection plan is right for you.  

No coverage via credit card

• Credit card companies don’t cover peer-to-peer car sharing reservations, even where they cover rental car trips. 

Terms of Service violations

For the Premier, Standard, and Minimum plans, if the Guest or any of their approved secondary drivers violate the Terms of Service, engages in any Prohibited Uses or otherwise intentionally, recklessly, or with wanton disregard, misuse the car, the contractual limitation of liability is void and does not apply. That means that the primary Guest will be fully liable for physical damage, including up to the actual cash value of the car, in addition to all Related Costs.

Commercial Host trips

If you’ve booked a vehicle from a Commercial Host, none of the above applies, and you won’t be offered a protection plan at checkout. Please refer to the listing or contact the Commercial Host for information about any insurance or protection available to you, including any related fees.

If you have questions about selecting among these options, please consult your insurance professional. You can also contact us at support.turo.com.