How does Turo work with insurance

Let’s face it — renting a car can be an expensive hassle, but driving your car for long distances can cause a lot of wear and tear. However, you might want to weigh your options if you’re planning a vacation. We know where your mind went right away, asking: “Should I use my own vehicle or rent a car for my next road trip?” That’s not unreasonable to think about, but you should know there are other options out there.

We’d like to introduce you to Turo, an innovative car-sharing platform that is available across Canada. That’s great and all, but car insurance can work differently when you aren’t driving your own car. That probably gives you something to think about. However, you should keep reading to let BrokerLink ease your mind and free you of any worries.

Explaining Turo

What is Turo? Turo is a car-sharing website that allows people to share their vehicles with customers, more commonly called “guests,” for a low price. The platform offers many types of vehicles. Whether you need an SUV or want to take a luxury sports car for a drive, Turo has it all.

How borrowing a car with Turo works

You can book a trip with a Turo host in the U.S., Australia, France, the U.K., and in several Canadian provinces. You’re free to drive a vehicle booked on Turo anywhere within the country where your trip starts, with no worries about crossing state or provincial borders. However, Turo does have some specific guidelines if you’re planning to take the car across international borders.

Borrowing a car for your next vacation or time out with friends is fairly simple. Let us walk you through the process below:

• First, you look for a car on the platform. If you are driving to a cottage or vacation home, you will need to provide information about your location or your destination.
• Next, you should go into the Turo app or website to book your trip. During this time, you will also choose a protection plan.
• After finalizing the details, you can have your vehicle delivered or picked up yourself. Also, remember to confirm the transaction in the app. It’s that easy, and all that’s left to do is start driving and enjoying your vacation.

Assuming all went well, you have your new ride and have hit the road by now. However, there are a few more details you should know about when renting a car from Turo. Next, we will learn how insurance policies work when driving a car you borrowed from the platform.

Protection plans for guests using Turo

When renting a car on Turo, you still require car insurance. Luckily, the platform offers several types of protection plans for those using its service. The company’s protection plans are divided into three levels. This is their version of rental car insurance. We will review each one to give you clarity before making your decision below:

Minimum Coverage

When you choose this option, you must pay out of pocket for any damages, excluding mechanical or interior damage. When a claim is filed, the guest is charged a damage deposit of $500, which increases to $2,000 if the vehicle is undriveable.

Standard Coverage

Opting for this protection plan still requires paying out of pocket for damages and claim processing fees. However, there is a limit of $500, and the vehicle owner will not be able to make any further claims against you.

Premium Coverage

When you choose this option your protection plan includes a $0 deposit when submitting a damage claim, excluding mechanical or interior damage. However, this plan is only available on vehicles that cost less than $25,000 and that you’ll be borrowing for at least two days or more.

Decline Damage Protection

Selecting this protection plan comes with a bigger risk. That’s because everything outside of mechanical and interior damage falls on you. There’s no contractual limit on this, but you will still be charged the previously mentioned damage deposits.

Having a protection plan is important if you inevitably get into a car accident when you borrow a car from Turo. Depending on your chosen plan, you are taking a higher risk because your insurance company cannot help you. There are no deductibles, so you will have to pay out of pocket for the physical damages you cause.

Car insurance options for vehicle owners using Turo

Across Canada, it’s illegal to drive without car insurance. That’s why Turo offers various protection plans to keep you safe on the road and provide coverage if you get into an accident. Let’s review what each Turo protection plan includes for those renting their vehicles out on the platform:

Third-party liability car insurance

This type of liability coverage is available to those using Turo to rent their vehicles to others. It offers coverage up to $2,000,000 if someone gets into an accident with your vehicle and will cover property damage and medical expenses. It can assist with paying for a rental car during repairs.

Physical damage protection

This protection plan financially protects vehicle owners from having to pay for their car being physically damaged or stolen while it’s rented out. It allows vehicle owners to receive the cash value of the vehicle if this happens.

Roadside assistance

Even the best vehicles can break down occasionally. If this happens to guests during their trip, Turo has you covered. Their roadside assistance team is available 24/7, but certain costs will not be covered.

It’s important to understand that if you’re using your car in a peer-to-peer car-sharing marketplace, like Turo, your personal insurance probably won’t cover you. But with Turo’s insurance for hosts, your car is protected while it’s being shared. Note that your car will not be protected while it’s not on a trip with Turo, so you are still required to insure your vehicle with your own personal coverage.

Types of damage Turo insurance covers

What does Turo insurance cover? You might be wondering this, especially if you’re driving or renting a car to a group of people driving from British Columbia to New Brunswick. Let’s discuss what types of damage Turo generally covers:

• Bodily injury
• Property damage

The company’s third-party liability insurance covers these two aspects. If someone gets hurt in an accident, the insurance will reimburse them. Additionally, if the vehicle is damaged as a result, coverage will be provided. It’s important to remember that accidents can be avoided by following our safe driving tips. Despite the help this coverage provides, there are limitations on what Turo insurance will cover, which we will talk about next.

Turo insurance limitations

However, it’s essential to keep in mind that, like most insurance policies, only some things will be covered. In the event that either type of damage listed below occurs, the guest will have to pay out of pocket for the repairs:

• Mechanical damage
• Interior damage

Mechanical damage happens when a part of the vehicle needs repair or replacement, often due to a guest’s negligence or intentional misuse. Interior damage refers to harm done to the inside of the car because of rough treatment or misuse. It’s also important to note that clutch damage is treated differently, so be aware that you're responsible for any issues related to the clutch. Unfortunately, in any of these cases, the guest will be responsible for covering the cost.

Like all types of car insurance, Turo has its limitations. Since you’re renting a car from someone online, there are different rules than if you were working with a car rental company. We will get into whether or not you can use your personal car insurance on Turo next.

Using your personal insurance with Turo

The short answer is no because personal car insurance policies are for personal use, such as driving to work and running basic errands. Your personal insurance policy will not cover when someone else is driving your car while it's booked through Turo, so you must opt for Turo’s insurance policy.

While you don’t need to buy extra insurance just to rent out your car on Turo, you must keep in mind that Turo’s protection plans only cover trips booked through their platform. So, you’ll still need to have your own personal car insurance policy to comply with car insurance laws if or when you drive your vehicle.

What you should think about when borrowing a car from Turo

Similarly to borrowing from a rental car company, you should do the basics, like inspecting the car for physical damage and wear and tear before driving off. This will prevent trouble later because no one can claim you were responsible if you take photos before the trip. Consider this and other things listed below whether you are a host or a guest on the platform:

• If you have third-party liability coverage through your own insurance policy, ask if it covers driving a car rented from Turo.
• Find out beforehand if credit coverage applies to the trip price. Booking a rental car from Turo is different from borrowing from a rental company.
• If you decide to use your own insurance policies, review the terms and conditions. Ask your insurance company directly for advice when selecting a protection plan.
• If you rent a Turo car in Canada, you can drive across multiple provinces and into the United States. This is similar to car rentals and S.E.F 27. However, you cannot cross the U.S.-Mexico border.

It’s essential to take precautions and factor the potential of physical damage into your trip price. Even if you don’t get into a car accident, being safe is better than sorry. Depending on the car's value, you will have to pay for its actual cash value if you don't have enough coverage.

Contact BrokerLink to learn more about your car insurance options

Using Turo is easy and convenient, but you should be cautious and choose the right protection plan. You don't want to be stuck paying for the actual cash value of someone else’s vehicle. To avoid this situation, you’ll need advice from an insurance agent, and getting a broker from BrokerLink who’s well-connected with local insurance companies can help.

While renting a car differs from owning or leasing one, you should still be aware of the most common types of car insurance across the country. Here are the insurance policies we offer:

• Third-party liability coverage
• Accident benefits coverage
• Uninsured automobile coverage
• Collision coverage
• Comprehensive car insurance coverage
• Accident forgiveness coverage

Are you looking for an insurance company that can help you get coverage when renting out your car or borrowing a car on Turo? Well, BrokerLink is here to help. Our team can connect you with insurance companies that provide Turo users with coverage. Contact us today to learn more.

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