Guest protection plans including insurance | US

Terms to know

• Guest - Refers to the primary guest tied to the trip booking. We also use it to refer to any 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 Liberty Surplus Lines (a Liberty Mutual Group company) (“Liberty Mutual”).

Third-party coverage

Subject to terms, conditions, and exclusions, the Liberty Mutual policy provides Guests with the following kinds of coverage. This coverage is active while they’re driving the booked vehicle during the booked trip.   

1. Bodily injury and property damage to third parties:
• The Liberty Mutual Policy insures Guests who book with non-Commercial Hosts against liability to third parties for bodily injury and property damage resulting from the use of the booked vehicle during the booked trip. Coverage provided is up to the minimum liability coverage required by state law. Guests can’t decline this coverage.
• If the primary Guest selects the Premier plan (discussed below), the limits of the coverage provided under the Liberty Mutual Policy are increased to a combined single limit of $1,000,000 subject to the terms of the policy.
2. Personal Injury Protection (“PIP”):
   • medical expenses
   • loss of income
   • funeral expenses
   • similar expenses resulting from injuries incurred during the use of the booked vehicle during the booked trip
• The Liberty Mutual Policy provides the minimum amount of PIP coverage allowed by law in those states where PIP coverage is required and can’t be waived.
• The scope of PIP coverage varies by state. It typically protects Guests and passengers (up to a stated dollar amount) for:
• Coverage is provided regardless of who was at fault.
• 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 agree to be bound by that election under the Terms of Service.
3. Uninsured or Underinsured Motorist (“UM/UIM"):  
   • an uninsured driver
   • a hit and run driver
   • a driver whose limits of liability have been exhausted
   • a driver whose insurer is insolvent while in the booked vehicle during the booked trip
• The Liberty Mutual Policy includes the statutory minimum amount of UM/UIM coverage in those states where UM/UIM coverage is required by law and can’t be waived.  
• UM/UIM coverage, when available, protects Guests and passengers from losses resulting from bodily injury caused by:
• 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 agree to be bound by that election pursuant to the Terms of Service.  

Guest primary coverage vs excess coverage

The third-party liability insurance coverage provided to Guests under the Liberty Mutual Policy is always secondary to any other applicable insurance the Guest may have. For example, if the Guest has their own personal auto policy, it will be primary over the Turo protection.  

Exception 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 Vehicle. If the Vehicle qualifies as a “replacement vehicle,” the Guest’s comprehensive physical damage coverage also applies. However, in Maryland the insurance available on Turo will be primary unless the Guest is using Turo for a replacement vehicle while the Guest’s own insured vehicle is repaired. 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. 

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 period of the booked trip. Turo and Turo Insurance Agency don’t provide information or advice about the Guest’s own coverage.  

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 doesn’t 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 Vehicle 

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

Guest responsibility

• 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 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 $575 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, we’ll refund the Guest the claims processing fee.
• 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 nor for trips in vehicles with a total market value of more than $25,000.00. Primary Guests between the ages of 18-20 may not select this plan.

   *Note, third party liability coverage under the Liberty Mutual policy is still secondary for Guests who have other applicable coverage under the Premier plan, other than in some circumstances in the state of Maryland.

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 (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. Primary Guests between the ages of 18-20 may select this plan.
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 (and after exhaustion of any other applicable insurance), is contractually limited to $3,000. Unless booking with a Commercial Host, primary Guests between the ages of 18-20 receive the Minimum plan. They can’t decline or change this protection plan. 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 $3000 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. Primary Guests between the ages of 18-20 may select this plan.
4. “Decline Physical Damage Coverage” 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 $3000 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. Primary Guests between the ages of 18-20 may not select this plan.

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 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 apply 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 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.

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 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.