For hosts running Turo as a serious, scalable business, relying solely on Turo's protection plans and integrated off-trip solutions (like the one powered by Tint) is usually not the most cost-effective or flexible long-term strategy.

Turo's protection only covers the car during the trip. Switching to an independent commercial policy is a strategic move that lets you keep 100% of the trip price (by declining Turo's physical damage reimbursement) and gives you far greater control over your growing fleet.

The decision to go commercial is purely economic, trading higher upfront premiums for a much larger share of the trip revenue. This guide outlines the key alternatives and the financial tipping point for scaling hosts.

The Commercial Advantage: Why Pro Hosts Switch

When you have a fleet of five to ten or more vehicles, the financial math shifts entirely away from Turo's protection plans (60, 75, 80, etc.) toward independent commercial coverage.

Revenue Maximization and Control

The single biggest draw is the 100% Host Take. Turo's highest take-home plan (90 Plan) still keeps 10% of the gross revenue. By switching to a commercial policy, you decline Turo's physical damage reimbursement and keep the entire fee, minus the marketplace commission. This massive increase in revenue per trip quickly offsets the monthly commercial premium, making high utilization significantly more profitable.

Addressing the Off-Trip Gap

The other major advantage is Off-Trip Coverage. Your personal insurance stops covering the car the moment it is listed for rent. A commercial policy covers the "gap" period—the time the car is not actively rented. This is crucial for high-volume operations where the car is constantly being driven to the car wash, the mechanic, a parking spot, or a remote delivery location between bookings. Relying on personal coverage for these business activities is risky and can lead to a policy being cancelled.

Commercial policies are designed with business needs in mind. They scale effectively, often covering three or more vehicles with a single policy, which simplifies management. Furthermore, they allow you to properly title and insure your vehicles under a business entity, such as an LLC. This separation is vital for liability protection and tax purposes as your Turo business matures.

Key Commercial Insurance Alternatives

While Tint is Turo's integrated partner (offering off-trip insurance for business use for hosts with 3+ cars), serious hosts explore independent commercial carriers for better rates, different risk requirements, or multi-platform coverage.

The landscape is divided between integrated partners and specialized commercial brokers:

Tint (Turo Partner): This option offers Affordable Off-Trip Coverage. It is specifically designed for Turo hosts to cover the gap when the car is used for Turo business purposes (e.g., transporting the car for cleaning or maintenance). This solution requires you to have 3+ vehicles and installation of a Tint-approved GPS telematics device for underwriting.

American Business Insurance (ABI): Known for its "Period X" Insurance, ABI specifically targets fleet owners who rent cars out on Turo and other platforms and do not use them for personal driving. This policy is ideal for the serious host running a no-personal-use model and is geared toward those operating a dedicated fleet.

Lula and GMI Insurance: These providers are specialized commercial insurers known in the traditional car rental and car-sharing space. They provide commercial fleet solutions that scale across multiple platforms and are usually geared toward larger, more established fleets, often those exceeding ten cars.

Standard Carrier Endorsements (Progressive/Geico): Some standard carriers may offer a ride-share endorsement, but hosts must confirm this explicitly covers peer-to-peer rental (Turo), not just ride-share driving (Uber/Lyft). This is usually best for small hosts (1–3 cars) who still need personal use coverage.

The Trade-Offs of Going Commercial

Moving to a commercial policy is a professional upgrade, but it demands more discipline and a higher upfront cash commitment.

Higher Deductibles: Commercial policies usually have higher deductibles or retention amounts than Turo's lower plans (like the 60 Plan with a $0 deductible). You will need a significant cash reserve to cover potential repair costs before the insurance pays out.

No Personal Use: Most commercial policies designed for Turo fleets, such as Tint and ABI's Period X, do not cover personal driving. If you take a car out for dinner, it is uninsured. You must be extremely disciplined about your car's use and keep dedicated personal vehicles separate from your commercial fleet.

Compliance Burden: Hosts must meet minimum safety standards required by commercial carriers and are fully responsible for compliance and providing proof of coverage to Turo. This translates to more administrative paperwork, stricter underwriting, and the need to follow rigorous maintenance schedules to keep the policy active.

The Final Economic Calculation

The point at which commercial insurance becomes a better financial choice is highly individual, but the break-even calculation is straightforward. This calculation helps hosts determine the minimum utilization required to justify the switch.

  1. Determine Premium Cost: Get a quote for a commercial policy (Example: $200 per car per month).
  2. Determine Trip Revenue Lost: Calculate the money Turo is keeping from your current protection plan (Example: If you use the 80 Plan, Turo keeps 20%).
  3. Find the Break-Even Utilization: The commercial policy is financially superior when the revenue you gain by keeping the extra percentage of your bookings exceeds the monthly premium.

This break-even analysis helps a host see the transition not as an added cost, but as a strategic path to unlocking greater profitability once their fleet achieves a certain utilization rate. For the host running 5+ cars with high utilization, commercial insurance is the necessary next step. It turns a variable cost (Turo's commission) into a fixed, predictable cost (the monthly premium), unlocks maximum revenue per trip, and puts you in direct control of your insurance relationship.

Frequently Asked Questions (FAQ)

Q1: Does Turo require me to buy separate commercial insurance?

A: No. Turo requires you to have protection, which can be provided by your own commercial policy (allowing you to keep 100% of the trip fee) OR by opting into one of Turo's plans.

Q2: What is "off-trip" insurance?

A: "Off-trip" is the coverage needed when the car is being used for Turo business (e.g., cleaning, driving to airport) or is just parked waiting for a guest. This is the gap not covered by personal policies.

Q3: What is the Turo host's liability coverage?

A: All Turo host protection plans include up to $750,000 in third-party liability coverage from Travelers (or Turo's equivalent insurer) during the rental period.

Q4: Can I register my Turo car under my LLC with commercial insurance?

A: Yes. Commercial policies, like those from Tint, are designed to insure vehicles registered under a business name or LLC.