Your personal auto insurance policy is built to cover personal driving, not commercial activity. When you rent your vehicle out on Turo, your personal insurance company sees that as a business use, meaning they will deny any claim that arises during a Turo trip.

Understanding this gap and how Turo bridges it is fundamental to operating safely.

The Gap: Why Your Personal Policy Fails

The core issue lies in the contract language. Almost all standard personal auto policies include a "livery" or "commercial use" exclusion. The moment a vehicle is rented to a third party for a fee, it loses coverage from the personal policy.

Your personal policy is suspended only during the period of the Turo trip. The coverage is still active when the car is parked at your home, used for personal errands, or is in your possession between trips. Turo provides the primary protection (liability and physical damage) that takes the place of your personal policy during the rental period. This Turo coverage applies only after the guest has checked in and before they check out.

Your Obligations as a Host

Turo's protection plans are in place, yet you still have specific, non-negotiable obligations to your personal insurer and your lender (if you have one).

A. Informing Your Insurance Provider

You must tell your personal insurance company that your vehicle is being used for car-sharing. If you don't notify your insurer and later file a claim for non-Turo damage (e.g., a theft or an accident while you are driving it), the insurer may investigate the car's history. If they find you used the car for Turo without disclosing it, they may cancel or non-renew your policy, even if the claim had nothing to do with a Turo trip.

When you notify your personal insurer, you usually get one of two responses: They will either Accept and Exclude the use, explicitly confirming the commercial use exclusion, which many major carriers offer. Or, they will Cancel/Non-Renew, informing you that they do not insure Turo vehicles and will cancel your policy at the next renewal date, forcing you to find a specialty carrier.

B. Lender Requirements

If you have a loan on your vehicle, your lender requires that you keep full, continuous coverage (collision and comprehensive) on the car. Turo's coverage satisfies this requirement during the trip, but you must make sure your personal policy (or specialty policy) covers the gap between trips. Failure to maintain this coverage is a breach of your loan contract.

The Solution: Specialty Car-Sharing Insurance

For hosts who depend heavily on Turo income or who have been non-renewed by their standard carrier, specialty car-sharing insurance is the answer. These policies are built to cover the vehicle when it is available for rent but not on an active Turo trip—this is known as the "gap". They fill the exact exclusion left by your personal policy. Carriers like Farmers, Allstate, and Metromile offer specific rideshare or car-sharing endorsements or policies designed for Turo hosts. The cost varies widely, but it is usually higher than standard personal insurance. This cost is an operational expense you must factor into your pricing model.

Turo's Protection Plans: What is Covered (and What is Not)

The Turo Protection Plan is the temporary policy that covers the entire rental period. You choose one of several plans (e.g., 60, 75, 80) which dictates your physical damage deductible and the percentage of the trip price you keep.

Turo covers Physical Damage up to the cash value of the car (as determined by Turo) for covered perils, minus your deductible. Turo also provides up to $750,000 in third-party Liability coverage for the host, which protects you from lawsuits resulting from the guest's driving.

It is important to understand what is Excluded: Turo's policy does not cover wear and tear, mechanical failures, interior damage from smoking, or losses due to a stolen vehicle if the host did not follow the check-in photo requirements.

Disclosure is Non-Negotiable

Running a Turo business means you must stop viewing your vehicle as purely personal property. Your insurance situation becomes commercial. The single most important rule is disclosure. Inform your personal insurer to protect your policy's validity and avoid having a non-Turo claim denied simply due to misrepresentation. Then, confirm the Turo Protection Plan fills the gap completely.

Frequently Asked Questions (FAQ)

Q1: Is Turo’s insurance automatically commercial?

A: Yes, Turo provides a commercial policy (or equivalent coverage) that steps in when the car is rented. Your personal policy is not the primary coverage during the rental.

Q2: What happens if I file a claim with my personal insurance for a Turo incident?

A: If the insurer discovers the car was being rented, they will almost certainly deny the claim due to the commercial use exclusion. Turo's policy should be the first and only resource for claims that occur during a Turo trip.

Q3: What is the "gap" insurance Turo hosts need?

A: The "gap" is the time the car is available for rent but not actively rented. This is when your personal policy is most likely to fail, making specialty car-sharing insurance necessary for some hosts.

Q4: Does Turo offer health insurance?

A: No, Turo's policy is for the vehicle and third-party liability. It does not provide medical or health insurance for the host or the guest.