Guest protection plans including insurance | Canada

The protection plans address three important concerns: Third-Party Auto Liability Insurance; Financial Responsibility for Physical Damage to the Shared Vehicle; and Additional Services (like Roadside Assistance). 

In this article, the word “guests” is used to mean the primary guest as identified in the trip booking, as well as any Turo approved secondary driver, unless otherwise stated. 

THIRD-PARTY AUTO LIABILITY INSURANCE

All protection plans available on Turo include coverage for guests under a third-party automobile liability insurance policy provided by Intact Financial Corporation.

1. Subject to terms, conditions, and exclusions, the Intact policy provides guests with the following kinds of coverage while they are driving the booked vehicle during the booked trip.
   • Bodily injury and property damage to third parties:
     • The Intact policy insures 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.
     • More information on the liability and accident benefits coverage can be found here.
     • Note, however, that it does not apply to vehicles that are booked on Turo from a Commercial Host.
2. If guests have their own personal automobile policy, depending on various factors such as applicable laws, where you book your 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 SHARED 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 booked 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 to the booked vehicle, as well as Related Costs (as defined below), up to the deductible amount, specified by the protection plan the primary guest chooses. If, for example, there is Physical Damage to the booked vehicle during the period of the booked trip, the primary guest will be legally liable for the costs of repair, plus Related Costs, regardless of fault. If, as another example, there is Physical Damage to the booked vehicle and the cost of repair exceeds 75% of the actual cash value of the booked vehicle, the primary guest will be legally liable for the actual cash value of the booked vehicle, plus Related Costs, minus the salvage value, if any.
  
  
• Note: Primary guests can protect themselves against an allegation that damage to the booked vehicle occurred during the period of the booked trip by documenting the condition of the booked vehicle, including any existing damage, at the start of the booked trip. Documentation can be done by uploading trip photos at the start of the trip, uploading pictures and a description to support.turo.com at the start of the trip, or documenting an agreement as to the condition of the booked vehicle and any existing damage with the host by using our “Trip Checklist” or similar means.

2. When a primary guest books a vehicle on Turo, the primary guest agrees that if any Physical Damage to the booked vehicle occurs during the booked trip, the primary guest will work with Turo to make a claim for coverage under any applicable policy of insurance, personal or otherwise, that applies to the loss.  

• Auto liability insurance policies that cover physical damage generally include two categories of physical damage, although variations do exist.
• Collision: This is physical damage caused by a collision during the operation of the vehicle, such as when two vehicles hit each other, or when a single vehicle hits an object.
• Comprehensive: This is physical damage to the car caused by something other than a collision, such as theft, fire, animal impacts, vandalism, falling objects, and acts of nature (windstorm, flood, etc.).

Guests should consult the language of their personal policy or speak to their own insurance agent to understand what coverage might exist for physical damage under their own auto insurance policies during the reservation period. Turo does not provide information or advice about the guest’s own coverage.

3. Primary guests can contractually limit the amount that they are legally obligated to pay out of their own pocket in the event that there is Physical Damage to the reserved car that is not covered, or fully covered by the primary guest’s own insurance.

• Your financial responsibility will vary depending on which protection plan you select at the time you book the trip. No matter what plan you’ve chosen, nor where the fault for the damage lies, you are ultimately responsible for eligible damage to the booked car, limited to your deductible.

• Primary guests may choose from four (4) options. 

• “Premier” plan: Under the Premier plan, the primary guest is not responsible for paying out of pocket costs for reported Physical Damage (other than eligible Mechanical or Interior Damage) to the booked vehicle. When Physical Damage is reported, the primary guest will not be financially obligated for the cost of the damage and will pay no deductible or claims processing fee. 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 but will pay no claims processing fee. A guest who chooses the Premier plan is still responsible for costs unrelated to liability or physical damage costs, such as excess mileage costs, parking tickets/tolls, and unremitted fuel costs. The Premier plan is not available for trips booked in Deluxe or Super Deluxe vehicles.
  
• “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 booked vehicle during the booked trip, plus Related Costs (and after exhaustion of any other applicable insurance), is contractually limited to $500, regardless of fault. When damage is reported, the primary guest will be charged the full $500. If the costs of the damage, plus all Related Costs, minus insurance collected, are less than $500, the difference will be refunded.
  
• “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 reserved car during the reservation, plus Related Costs (and after exhaustion of any other applicable insurance), is contractually limited to $2,000, regardless of fault. When damage is reported, the primary guest will be charged the full $2,000. If the costs of the damage, plus all Related Costs, minus insurance collected, are less than $2,000, the difference will be refunded.
• “Decline Physical Damage Coverage” plan: Under this plan, the primary guest’s financial responsibility for damage to the booked vehicle is not contractually limited at all, and does not depend on fault. 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, whether the primary guest has their own insurance or not. For example, if the booked 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, regardless of fault. 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 Premier, Standard and Minimum protection plans:

• ONLY apply if the primary guest and each approved secondary driver abides by the Terms and Conditions;
• With the exception of the Premier plan, ONLY apply to the amount the primary guest is obligated to pay in excess of insurance that is available and has been collected; and
• ONLY apply to Physical Damage that is not Mechanical or Interior Damage; and
• Does NOT depend on fault.

IMPORTANT CONSIDERATIONS   

When you, as a primary guest, are deciding which protection plan to choose, here are some important considerations:

1. Know your own coverage. If you have a personal automobile insurance policy, what does your own insurance cover when you are driving a car booked through Turo? Do not assume that your personal auto insurance policy applies to peer-to-peer car sharing trip bookings in the same way that it applies to traditional rental car bookings. Please 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.  
2. Coverage via credit card. Many people incorrectly believe that they have full coverage when they pay for their Turo booking with a credit card. Please check 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. Turo is not aware of any credit card providers who offer coverage or insurance for peer-to-peer car sharing trip bookings, and many personal insurance policies exclude coverage for peer-to-peer car sharing. Please also see this FAQ entry on the topic.
3. Terms of Service violations. For the Premier, Standard and Minimum plans, if the guest or any of their approved secondary drivers violates the Terms of Service, engages in any Prohibited Uses or otherwise intentionally, recklessly, or with wanton disregard, misuses the car, the contractual limitation of liability is void and does will not apply. That means that the primary guest will be fully liable for physical damage, up to the actual cash value of the car, and all Related Costs, regardless of fault.
4. Mechanical or Interior Damage. The contractual limitation of liability available under the Premier, Standard and Minimum plans does not 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 choose, the primary guest is legally 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.
5. Physical Damage. “Physical Damage” means any damage to the booked vehicle, including Mechanical Damage and Interior Damage.
6. Related Costs. "Related Costs" include all costs and fees resulting from damage of any kind to the booked vehicle during the booked trip, 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 $150 per claim.
7. Turo protection is secondary. The Standard and Minimum packages are supplemental, which means they apply only to the amount that the primary guest is obligated to pay out of their own pocket after all sources of insurance available to the primary guest or an approved secondary driver (whether through a credit card, personal automobile, or other policy) have been exhausted and paid. 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.

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 additional questions regarding selecting among these options, please consult your insurance professional, or contact us at support.turo.com.