Detailed explanation of host protection plans in the US

Turo is not an insurance company and does not insure Hosts or Guests. Turo does make Protection Plans available to US Hosts and US Guests. All Protection Plans include third-party liability insurance from Liberty Mutual under a policy acquired by Turo via Turo Insurance Agency, LLC, a licensed insurance producer.   

The information in this article applies only to US Hosts who purchased a Host Protection Plan through Turo. Canadian hosts should click here. Germany hosts should click here. UK hosts should click here.

Protection Plans are not available to hosts whose vehicles are listed outside of the US, UK, Germany, or select provinces of Canada (Quebec, Nova Scotia, Ontario, and Alberta). In addition, Protection Plans do not apply to Commercial Hosts in the US, UK, Germany, or Canada who have expressly declined a Protection Plan, have listed their vehicles as a Commercial Host, and provide their own commercial rental insurance coverage and protection plans to their customers.  

This article describes Protection Plans for US Hosts. If you are booking a trip, please refer to our article describing Guest Protection Plan options.

Overview and key concepts

All US Host Protection Plans address two important concerns: third-party liability and responsibility for the financial consequences of physical damage to the shared vehicle. There are three Protection Plans for Hosts: “Premium,” “Standard,” and “Basic.” All three plans (Premium, Standard, and Basic) provide up to $1,000,000 in third party liability insurance, but differ as to the allocation of the financial consequences of physical damage to the shared vehicle during the reservation period.

Note: A rental car company that has commercial rental liability insurance that covers their vehicles and their guests during the reservation period may choose to decline a Host Protection Plan and may list their cars as a “Commercial Host.”  Before being allowed to decline a Host Protection Package and list their cars as a Commercial Host, a company must provide verifiable evidence of Commercial Insurance Coverage.

Third-Party Auto Liability Insurance:  

All US Host Protection Plans include coverage for Hosts under a third-party automobile liability insurance policy purchased by Turo from Liberty Surplus Lines.  (US Host Protection Plans do not apply to Commercial Hosts.)

1. Liberty Surplus Lines is an insurance company that is part of the Liberty Mutual Group (“Liberty Mutual”). Subject to terms, conditions, and exclusions, the Liberty Mutual Policy provides Hosts with the following kinds of coverage during the reservation period.  

• Bodily injury and property damage to third parties:

• The Liberty Mutual Policy insures Hosts against liability to third-parties for bodily injury and property damage resulting from the use of the reserved car during the reservation, up 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 hosting income, funeral expenses, and similar expenses resulting from injuries incurred during the use of  the reserved car during the reservation, 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 Hosts, 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 reserved car during the reservation period.  

• 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.  

Note:  Many private passenger automobile insurance policies exclude coverage for peer to peer car sharing, meaning that the Host’s policy likely does not insure the vehicle during the reservation period (including the delivery). Some policies may, however, still provide coverage and Hosts should talk to their own insurance company or advisor about the applicability of their own insurance. Turo Insurance Agency does not provide information or advice about the existence or scope of any coverage that might be available under a Host’s policy during the reservation period.

Financial Consequences of Physical Damage to the Shared Vehicle

U.S. Host Protection Plans also address the allocation of the financial consequences of Physical Damage to the Reserved Vehicle after Delivery and during the Reservation Period.  Despite Turo’s screening of Guests and drivers, Physical Damage can occur after Delivery. To the extent that Physical Damage is not covered by insurance (including a third-party’s insurance), each Protection Plan reflects the agreement between the Host and Turo as to how to fairly allocate responsibility for the financial consequences of that Physical Damage. Turo is NOT an insurance company and does not insure you or your vehicle.  

The US Host Protection Plans addresses the allocation of the following categories of financial loss that might result from Physical Damage to the Reserved Vehicle after Delivery and during the Reservation Period.  

• Necessary Repair Costs: These are the fair and reasonable costs actually paid for the parts and the labor necessary to repair the Physical Damage to the Reserved Vehicle that occurred after Delivery during the Reservation Period.  
• Under the Basic Plan, subject to all of the Terms and Conditions, Turo will be responsible for (i) 20% of the uninsured Necessary Repair Costs up to $3,750 and (ii) 100% of the uninsured Necessary Repair Costs over $3,750, up to the lesser of the value of the vehicle or $125,000.*  
• Under the Standard and the Premium Plans, subject to all of the Terms and Conditions, Turo will be  responsible for (i) the uninsured Necessary Repair Costs, up to the lesser of the value of the vehicle or $125,000.*

• Replacement Transportation Cost: This is the cost that the Host actually incurs for alternative transportation while the Reserved Vehicle is inoperable because of the Physical Damage or is unavailable to use because it is undergoing Necessary Repair.
  • Under the Basic Plan, Turo is not responsible for any Replacement Transportation Costs.
  • Under the Standard and Premium Plans, subject to all of the Terms and Conditions, Turo will, at the Host’s election either: 
    • give the Host travel credit to be used on Turo to book an alternative vehicle for use while the Reserved Vehicle is inoperable because of the Physical Damage or is unavailable to use because it is undergoing Necessary Repair, up to a maximum of 10 days (but not more than the reasonable amount of days) while the vehicle is inoperable. Turo will provide a vehicle reimbursement for three days after the initial offer if the vehicle is considered a total loss; OR;
    • reimburse the Host for up to $30 per day in documented Replacement Transportation Costs for a maximum of 10 days.
• Exterior Wear and Tear: This means dings, dents, cracks, or scratches that are 3 inches in diameter or less to the exterior body of the Reserved Vehicle, including rims, wheels, hubcaps, any painted or textured area of the body of the vehicle, and moldings. A more detailed description of wear and tear can be found here.
• Under the Basic and the Standard Plans, Turo is not responsible for any Exterior Wear and Tear Costs.
• Under the Premium Plan, Turo is responsible for Exterior Wear and Tear Costs for confirmed, new physical damage that is under 3”. Interior damage and normal operating mechanical wear and tear is not included.
• Loss of Hosting Income: This refers to the income that the Host would have earned while the Reserved Vehicle was inoperable or undergoing Necessary Repairs as a result of Physical Damage.  An explanation of how Loss of Hosting Income is calculated is found in this article.
• Under the Basic and the Standard Plans, Turo is not responsible for any Loss of Hosting Income.
• Under the Premium Plan, Turo is responsible for the Loss of Hosting Income for the damaged vehicle’s potential earnings, based on that vehicle’s earnings for the last month or the average earnings for that vehicle over a year.

Summary of US Host Protection Plans

*For the Tesla Model X, Model S, and Model 3 only, Turo will be responsible for the cost of repair up to the actual cash value of the vehicle, even it is more than $125,000.  

**If Physical Damage results from an “act of nature” (e.g., flood, earthquake, hail, windstorm, etc.), Turo will only be responsible for (and its liability is limited to) the amount equal to the amount (if any) that the Host’s private passenger auto insurer would have had to pay for that damage under the primary insurance policy covering the Reserved Vehicle in effect immediately prior to the start of the Reservation Period.

Detailed terms and conditions:   

1. Important Definitions.

   • Delivery means the time at which the Primary Guest first takes physical possession of the Reserved Vehicle during the Reservation Period.  
   • Delivery Period means any time before the Reserved Vehicle is Delivered, including the time when the Host or the Host’s designee is actively delivering the car to the Primary Guest.  (To be clear, the Delivery Period does not include the period during which the Host or the Host’s designee is retrieving the Reserved Vehicle at the end of the Reservation Period.)
   • Deterioration is any fading, discoloration, rust, or wear caused to the interior or exterior of the vehicle over time. Also includes any deterioration from road use of tires, and mechanical deterioration of belts, suspension, electrical and mechanical components, along with any resulting damage from these events.
   • Interior Wear and Tear means any minor scuffing of interior surfaces that is 3 inches or less in diameter, along with any dials, switches, knobs, that break or fail over time.  Cuts and punctures that are clearly due to abuse or misuse by the Guest are not included in this definition.
   • Mechanical Failure means any mechanical, electrical, suspension, engine, or transmission damage a vehicle incurs due to age, normal usage, defect, a lack of maintenance, or warranty issue (including, but not limited to manufacturer defect), along with any resulting damage that arises due to those causes, and excluding any mechanical damage caused by the Guest’s negligence or intentional misuse. Clutch damage is handled separately and our policy can be found here.
   • Necessary Repair Costs means the reasonable and necessary costs for the parts and the labor required to repair the Physical Damage to the Reserved Vehicle that occurred after Delivery and during the Reservation Period, except for Excluded Costs.
   • Excluded Costs means
     • Aftermarket parts, accessories, wraps or decals not including wheelchair accessible equipment such as lifts, ramps, and related parts.
     • If the Qualify Cause is an act of nature (e.g., flood, earthquake, hail, windstorm, etc.), any cost that the Host’s private passenger auto insurer would not have been required to pay under the primary insurance policy covering the Reserved Vehicle in effect immediately prior to the start of the Reservation Period.
   • Physical Damage means actual tangible damage to the Reserved Vehicle that occurs (i) after Delivery during the Reservation Period as a result of a Collision or a Qualified Cause or (ii) while a car is parked in a Turo valet lot, unless such damage is Excluded Damage.  (Note:  The Host is required to demonstrate that any damage to the Reserved Vehicle meets the definition of Physical Damage by providing the proof outlined below).
     • Collision means when the Reserved Vehicle collides with another vehicle or an object.
     • Qualified Cause means theft, fire, animal impacts, vandalism, falling objects and acts of nature (e.g., flood, earthquake, hail, windstorm, etc.). 
   • Excluded Damage means:
   • Damage existing as of the start of the Reservation Period;
   • Interior wear and tear;
   • Exterior wear and tear for vehicles on the Standard or Basic Plans
   • Physical Damage occurring prior to Delivery (including during the Delivery Period);
   • Deterioration;
   • Mechanical Failures
   • Physical Damage that occurs during any period during which the Host is in violation of the Terms of Service;
   • Damage to any personal items left in the Reserved Vehicle; and
   • Damage to, or resulting from, tires that are defective, have excessive wear & tear or dry rot, have tread depth less than 4/32 inch, were not properly inflated at Delivery, or are 6 or more years old.
   • Reservation Period means when a reservation is checked in or a trip start until check out or trip end.
2. Payment/Reimbursement Requirements and Process

• Proof of Physical Damage:
  • For hosts to qualify for physical damage coverage for any event that qualifies as a covered peril during the reservation period, and for the guest to be held responsible for the damage, Turo must have the following documentation:
    • (1) clear photo documentation from the host of the areas the host is seeking coverage for taken within 24 hours of the start and end of the trip that demonstrates that the damage occurred during the trip; or
    • (2) other evidence (e.g. a police report, third party report) that demonstrates the damage took place during the trip; or
    • (3) if all of the following three conditions are true: (a) Guest used Turo Go to lock and unlock the car; and (b) the Host or the Host’s designee was not physically present at the start of the reservation; and (c) the Guest did not take front, back, side, and other applicable photos of the vehicle at the time of car pick-up. If 3a - 3c are all met, then clear photo documentation of the area the Host is seeking coverage for taken with 24 hours of the end of trip by the Host, along with the Host’s credible representation that the damage took place during the trip, may be sufficient documentation to qualify for physical damage protection.
• Payments and reimbursements are made via ACH or check. If a trace number or bank research is requested, a fee of up to $50 may be charged to the host.

• Proof of Necessary Repairs
  • For hosts to qualify for the coverage for the necessary repairs in any event that qualifies as a covered peril during the reservation period, and for the guest to be held responsible for the damage, Turo must have the following documentation:
    • (1) clear, dated, photo documentation from the host of the out-of-pocket expenses paid for the vehicle’s repair; and
    • (2) other evidence (e.g. a diagnostic report, vehicle alignment sheet) that demonstrates the damage was repaired and paid for.
• Payments and reimbursements are made via ACH or check. If a trace number or bank research is requested, a fee of up to $50 may be charged to the host.
• Proof of Replacement Transportation Cost
• For hosts to qualify for reimbursements for Replacement Transportation Costs, Turo must have clear, dated receipts of the purchase.
• Reimbursements for Replacement Transportation Costs and  Loss of Hosting Income is issued with host earnings.

The allocation of responsibility between Turo and the Host is not impacted or altered in any manner by any amount that Turo can or does collect from the Primary Guest or from a third parties on account of the Physical Damage.  The Host’s Plan is unrelated to the level of responsibility retained by the Primary Guest under the whichever Guest Protection Plan is chosen by the Primary Guest.

Commercial Hosts who provide their own commercial rental insurance do not participate in any U.S. Host Protection Plan.  Commercial Hosts are NOT covered under the Liberty Surplus Policy and are solely liable for all Physical Damage and the financial consequences of Physical Damage that occurs to the Reserved Vehicle at any time.   Commercial Hosts must resolve any and all damages and disputes directly with their Guests and their commercial insurance provider.