The information in this article applies only to vehicles booked in the US that are booked with a protection plan made available by Turo. Turo is not an insurance company and does not insure hosts or guests. In the United States (excluding the state of New York where the Services are not available), Turo makes protections plans available to hosts and guests (except in the case of Commercial Hosts) with respect to the vehicle shared. Any insurance that is included in a protection plan is provided through Turo Insurance Agency, LLC, an Arizona insurance producer. Vehicles that are provided by a Commercial Host are subject to the terms and conditions of the insurance and/or protection plans provided or offered by the Commercial Host. Guests who book with a Commercial Host may get information on available insurance and/or protection plans directly from the Commercial Host. We are unable to provide information or advice regarding any insurance and/or protection plans available through Commercial Hosts.
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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).
This article focuses primarily on guests. Many host-specific items are discussed in this article for host protection plans. In this article, the word “guests” is used to mean the primary guest as identified in the trip booking, as well as any authorized secondary driver, unless otherwise stated.
Third-Party Auto Liability Insurance
All protection plans made available by Turo include coverage for guests under a third-party automobile liability insurance policy purchased from Liberty Surplus Lines (a Liberty Mutual Group company) “Liberty Mutual”.
- Subject to terms, conditions, and exclusions, the Liberty Mutual 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 Liberty Mutual 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 the minimum liability coverage required by state law. This coverage cannot be declined. Note, however, that it does not apply to vehicles that are booked on Turo from a Commercial Host.
- ○ If the primary guest selects the Premier or Standard plan, the limits of the coverage provided under the Liberty Mutual Policy are increased to a combined single limit of $1,000,000.
- Personal Injury Protection (“PIP”):
- ○ The Liberty Mutual Policy provides the minimum amount of PIP coverage allowed by law in those few states where PIP coverage is required by law and cannot be waived.
- ○ The scope of PIP coverage varies by state, but typically protects guests and passengers (up to a stated dollar amount) for medical expenses, loss of income, funeral expenses and similar expenses resulting from injuries incurred during the use of the booked vehicle during the booked trip, without regard to who was at fault.
- ○ PIP is not required in all states and may be waived in some states. Turo has either waived this coverage entirely or subscribed to the lowest limit allowable by state law. Hosts and guests are bound by Turo’s election and, in addition, agree to be bound by that election under the Terms of Service.
- Uninsured or Underinsured Motorist (“UM/UIM"):
- ○ The Liberty Mutual Policy includes the statutory minimum amount of UM/UIM coverage in those few states where UM/UIM coverage is required by law and cannot be waived.
- ○ UM/UIM coverage, when available, protects guests and passengers from losses resulting from bodily injury caused by an uninsured driver, hit and run driver, a driver whose limits of liability have been exhausted, or a driver whose insurer is insolvent while in the booked vehicle during the booked trip.
- ○ Turo has either waived this coverage entirely or subscribed to the lowest limit allowable by state law. Hosts and guests are bound by Turo’s election and, in addition, agree to be bound by that election pursuant to the Terms of Service.
- The third-party liability insurance coverage provided to guests under the Turo Liberty Mutual Policy is always secondary to any other applicable insurance the guest may have (such as a motor vehicle insurance policy covering vehicles owned by the guest), except in Maryland.
- If the car you book on Turo is registered in Maryland OR the guest’s own auto liability insurance policy was issued in Maryland, the Turo Liberty Mutual Policy is primary for the guest, unless the car booked on Turo is considered a “replacement vehicle” under the guest’s car insurance policy, in which case the Liberty Mutual coverage may be secondary. A “replacement vehicle” is typically defined as a vehicle that is being booked while the guest’s own vehicle is not in use because of a “loss” or because of breakdown, repair, service, or damage. Guests should consult the language of their policy or speak to their own insurance agent to determine whether a car booked on Turo is considered a “replacement vehicle” under the guest’s policy. Turo Insurance Agency does not provide information or advice about whether a booked car qualifies as a “replacement vehicle.”
*Note: In some states, the host’s policy may continue to provide coverage for guests and passengers, even during the booked trip. Turo Insurance Agency does not provide information or advice about the existence or scope of any coverage that might be available under the host’s policy during the booked trip.
Financial Responsibility for Physical Damage to the Shared Vehicle
Protection plans made available by 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). 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. 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.
o 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.
- Guests may be insured against Physical Damage to the booked vehicle that occurs during the period of the booked trip under their own automobile liability policies. Even if the third-party liability insurance coverage under the guest’s own car insurance does not apply, the first-party liability coverage for physical damage (as defined in that policy) may apply. 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 policy of insurance 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.).
- Rule for Maryland: If a guest is insured under a policy of auto liability insurance issued in Maryland that includes collision and/or comprehensive coverage for physical damage, the guest’s collision coverage applies during the booked trip with the booked vehicle and, if the booked vehicle qualifies as a “replacement vehicle,” the guest’s comprehensive physical damage coverage also applies.
Guests should consult the language of their 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 and Turo Insurance Agency do not provide information or advice about the guest’s own coverage.
- 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. 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. 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 $3,000. When damage is reported, the primary guest will be charged the full $3,000. If the costs of the damage, plus all Related Costs, minus insurance collected, are less than $3,000, 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. 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. 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 Basic protection plans:
- ONLY apply to the amount the primary guest is obligated to pay in excess of insurance that is available and has been collected; and
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;
- ONLY apply to Physical Damage that is not Mechanical or Interior Damage.
When you, as a primary guest, are deciding which protection plan to choose, here are some important considerations:
- Know your own coverage. If you own a policy of auto liability insurance, 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.
- 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.
- 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, including up to the actual cash value of the car, in addition to all Related Costs.
- 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.
- Physical Damage. “Physical Damage” means any damage to the booked vehicle, including Mechanical Damage and Interior Damage.
- 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 $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.
- With the exception of the Premier protection plan, which is primary, all other protection plans 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. Under the peer-to-peer carsharing law in the state of Maryland, however, damage to the host’s vehicle is always covered as primary under a personal auto policy maintained by the guest, but third party liability insurance is always supplemental, unless the guest is using a replacement car through Turo while their own car is in the shop.
REMINDER! If you have elected to book a vehicle from a Commercial Host who is providing commercial rental liability insurance directly to you, none of the above applies, and you will not be offered a protection plan during the checkout process. 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.