Detailed explanation of owner protection plans

This article is only for US owners who have selected a Turo protection package. Canadian owners should click here for information about protection provided by our insurance partner, Intact.

Turo’s protection plan options are not available to owners whose vehicles are listed outside of the US or select provinces of Canada (Quebec, Ontario, and Alberta). The plans do not apply to owners in the US or Canada who have declined a protection plan in order to provide their own commercial rental insurance to their customers.

This article describes protection options for US vehicle owners. If you are renting via Turo please check out our other article customized for renters to understand your protections as a renter.

Summary Overview:

Turo offers three vehicle protection plans for owners: “Premium”, “Standard”, and “Basic”. A rental car company that can offer commercial rental liability insurance directly to their travelers and for their vehicles may also choose to decline a Turo protection package. All three Turo plans (Premium, Standard, and Basic) provide $1,000,000 in liability protection, but differ in other ways, particularly how physical damage is covered.  If an owner chooses to decline a Turo protection plan, they must provide commercial insurance that is verified by Turo prior to the owner renting out their vehicles.

Detailed Terms:

So long as an owner is in compliance with the Terms of Service and has not chosen to decline a Turo protection plan, the following protections are available:

Liability coverage. The owners will have the benefit of third party liability protection as further described in this article, and summarized below:

• 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 over the owner’s auto policy.
• Liability coverage is also in effect during the delivery period.

Physical damage. Turo will provide physical damage protection that provides coverage up to the actual cash value of the car, up to a limit of $125,000, for any event that qualifies as a covered peril during the rental period. The exception is the Tesla model X and model S; Turo will provide coverage up to the actual cash value of these cars with no other limit.

Deductible. For vehicles on the Premium and Standard plans, there is no deductible for physical damage to the car. For vehicles on the Basic plan, there is a maximum $3,000 deductible for physical damage to the car. For these vehicles, Turo covers the first 20% of any covered physical damage costs up to $3,750, and 100% of the damage cost over and above that amount. The owner would be responsible for the first 80%, up to $3,750, and 0% above $3,750. You may find examples here.

Replacement vehicle. For vehicles on the Premium and Standard plans, Turo will either provide you a replacement vehicle, or reimburse you up to $30 a day (for a maximum of 10 days) for your transportation needs while your vehicle is repaired. For vehicles on the Basic plan, there is neither transportation vehicle replacement nor reimbursement while your vehicle is repaired.

Exterior wear and tear. For vehicles on the Premium plan, Turo provides coverage for exterior wear and tear. Turo does not offer coverage for exterior wear and tear for owner vehicles on the Standard or Basic plans. Interior wear and tear is not covered under any protection plan.

Loss of rental income. For vehicles on the Premium plan, Turo will cover loss of rental income while your vehicle is repaired. There is more detail on how Turo calculates loss of rental income in this article. Turo does not offer loss of rental income for vehicles on the Standard or Basic plans.

General Definitions:

• Covered Peril: A covered collision or comprehensive event that takes place during the rental period, excluding:

1. pre-existing damage;
2. interior wear and tear
3. exterior wear and tear for vehicles on the Standard or Basic plans
4. any mechanical failure;
5. any physical damage during the delivery period
6. aftermarket parts, accessories, wraps or decals
7. deterioration
8. any damage that occurs where an owner is in violation of the Terms of Service
9. personal items left in the car; and
10. any of the following, unless there is clear photo documentation less than 24 hours prior to the start of the trip that demonstrates that the damage was caused during the rental period:
1. Body Damage: dings, dents, or scratches with diameter less than 6 inches
2. Wheels: damage of less than 6 inches
3. Lights, turn signals and lamps: damage of up to 1 inch in diameter

• Collision: this is 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.). 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 on their own personal policy for the car immediately prior to the rental.

• Physical Damage: any damage incurred to a vehicle that meets the definition of a covered peril.

• Delivery Period: the time when the owner, or designee, who is a Turo Approved Driver, is actively delivering the car to the renter, and ends when the car has been delivered to the renter. The period does not include the time when the owner or designee is retrieving the car.

• Exterior Wear and Tear: any dings, dents, cracks, or scratches to the exterior body of the vehicle that is 3 inches in diameter or less. This includes, but is not limited to, rims, wheels, hubcaps, any painted or textured area for the body of the vehicle, and moldings. More discussion on wear and tear here.

• Interior Wear and Tear: 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 traveler are not included in this definition.

• Mechanical Failure: any mechanical, electrical, suspension, engine, or transmission damage a vehicle incurs due to age, normal usage, defect, a lack of maintenance, or warranty issue, along with any resulting damage that arises due to those causes, and excluding any mechanical damage caused by the renter’s negligence or intentional misuse. Clutch damage is handled separately and our policy can be found here.

• Deterioration: 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.

In all cases where the owner has selected either the Premium, Standard, or Basic protection package, the owner's protection is not affected by whether and how much Turo may collect from renters or other third parties, nor is the owner’s chosen vehicle protection plan related to whatever protection package the renter may have selected.

If the owner declines a Turo protection package and opts to provide their own commercial rental insurance instead, they do not benefit from any protection from claims, damages, or any other circumstance as described in the above sections. An owner who decline a protection package and opt into owner-provided insurance therefore must resolve any and all damages and disputes directly with their renter and their commercial insurance provider.

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 insurance broker.