Turo protects owners, renters and third parties, addressing both liability and physical damage exposures.
A. Liability policy addresses three components, and the insurance is provided according to the following terms:
Bodily injury and property damage to third parties: the policy provides a $1,000,000 combined single limit per occurrence for owners during the rental period, designed to be on a primary basis. During the “delivery period” (i.e., the period starting when the owner is actively delivering the car to the renter, and ending when the car is delivered, and excluding any period when the owner (or their designee) is on the way to retrieve or has retrieved the car from the renter), and only so long as the owner (or their designee) satisfies the eligibility requirements and is therefore an Approved Driver, this coverage applies as well. Renters may select between protection packages that either include this $1,000,000 combined single limit (for the "Premium Package"), or provide liability coverage that is the minimum required by the state where the car is registered (for the "Basic" and "Decline" packages). These coverages are always secondary to any other policies the renter may already have.
PIP (short for “Personal Injury Protection”, or sometimes called “first party benefit” or “no-fault”): the renter has the benefit of the statutory minimum required in the state where the vehicle is registered, which in many instances may be zero. This coverage varies by state, and typically addresses medical expenses, loss of income, funeral expenses and similar expenses for the driver or passengers in the vehicle without regard to fault. PIP is not applicable in all states. Turo has either waived this coverage entirely or subscribed to the lowest limit allowable by state law, and members are bound by such election and agree to be so bound, as per the Terms of Service.
UM/UIM (“Uninsured or Underinsured Motorist"): This coverage will pay the renter or the renter’s passengers for 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. Once again, Turo has either waived this coverage entirely or subscribed to the lowest limit allowable by state law, and members are bound by such election and agree to be so bound, as per the Terms of Service.
* Note: In some states, certain owners’ coverages may continue to stay with the vehicle, even during the rental period, and so in those states the owner's insurance could be implicated. Turo, through its third party insurer, provides the statutory minimal UM/UIM coverage in all states, which may sometimes be zero.
B. Physical Damage protection includes two categories of “covered perils”: comprehensive and collision.
Collision: When two vehicles hit each other, or when a single vehicle hits an object.
Comprehensive: Other property damage to the car that isn’t a collision – theft, fire, animal impacts, vandalism, falling objects and acts of nature (windstorm, flood, etc.)
Owner: If the car suffers collision damage, or certain comprehensive damage (comprehensive damage other than resulting from acts of nature), including intentional damage caused by the renter, during the rental period, the owner is protected against the property damage to the car, and will receive compensation up to the actual cash value of the car. Coverage excludes any damage during the delivery period, all pre-existing damage, normal “wear and tear” of the vehicle, aftermarket items, and any personal items left in the car. Coverage also excludes the following damage unless clear photos are taken of the relevant area less than 24 hours prior to the start of the trip: for body or wheel damage, any dings, dents, or scratches less than 6 inches; for lights, turn signals, and lamps, any damage up to one (1) inch in diameter. In the case of “acts of nature” comprehensive damage (e.g., flood, earthquake, hail, windstorm, etc.), the owner will receive protection identical to whatever pre-existing comprehensive coverage the owner has in effect for the car immediately prior to the rental. Clutch policies may be found here. The owner's protection is not affected by whether and how much Turo may collect from renters or other third parties.
Renter: The renter is responsible to return the car on time and in essentially the same condition it was in when they first received it. If there is damage to the car at the end of the trip, unless the renter has documented pre-existing damage by uploading Trip Photos at the beginning of the trip, by e-mailing pictures and a description to firstname.lastname@example.org at the start of the trip, or has documented an agreement with the owner regarding pre-existing damage by using our “Trip Checklist” or similar means, the renter is primarily responsible for all damage. Any physical damage protection that Turo offers is “secondary” or “supplemental”, as further detailed at the end of this FAQ article.
The renter can choose from three (3) options to satisfy his or her physical damage obligations.
“Premium” Package: The renter’s out-of-pocket exposure is limited to payment of a deductible of $500. When damage is reported, the renter 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 renter will be refunded the difference.
“Basic” Package: The renter’s out-of-pocket exposure is limited to a payment of a deductible of $3000, under the same structure described in the Premium package.
“Decline Coverage” Package: The renter’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 renter is responsible to pay the entire actual cash value of the car, plus all Related Costs, minus any residual salvage value.
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 rent cars through the Turo marketplace. Please also see this FAQ entry on the topic.
For both the Premium and Basic packages, 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 renter will be liable for physical damage up to the actual cash value of the car, in addition to all Related Costs.
Furthermore, if during the rental period, 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 renter will be liable for the full cost of the repairs or replacement, as well as 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 owner without substantial processing by Turo’s third party claims administrator, the renter will be refunded the claims processing fee.
The Premium and Basic packages are “supplemental” or “secondary” to any existing coverage the renter may have available through other sources (whether through a credit card, personal automobile, or other policy). In practice, this means that the renter is primarily liable, but can satisfy their obligations through these other sources, such that Turo will first collect the relevant deductible directly from the renter, and then will seek reimbursement (“subrogation” in insurance terms) from the renter’s other sources for the total amount of liability.
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 broker.