Imagine you’re scrolling through your phone, daydreaming about your next adventure, when you stumble upon Turo – the peer-to-peer car sharing platform that promises to revolutionize the way we travel.
As a USAA member, you can’t help but wonder, “Does my insurance cover me if I decide to rent a car through Turo?” Or perhaps you’re on the other side of the equation, considering listing your vehicle on the platform.
Either way, you’ve just stepped into a complex world where traditional insurance meets the sharing economy, and I’m here to guide you through it.
I’ve spent countless hours researching this topic, speaking with insurance agents, and even dipping my toes into the Turo waters myself. Let me tell you, it’s been quite the journey.
The Renter’s Dilemma: Are You Covered?
You’ve found the perfect car on Turo for your weekend getaway. It’s sleek, affordable, and promises to make your trip unforgettable. But before you hit that “Book” button, let’s talk about insurance.
USAA and Personal Auto Policies
Here’s the truth: Your personal USAA auto insurance policy typically doesn’t extend to cars rented through Turo.
This is the same story for Progressive and most insurance companies across the board.
State Farm and Geico is perhaps the only company with no definite policy about this.
I learned this the hard way when I called my USAA agent before my first Turo rental. She explained that peer-to-peer car sharing platforms fall into a gray area that most personal policies don’t cover.
Why is this the case?
Well, Turo isn’t a traditional car rental company. When you rent through Turo, you’re borrowing a car from an individual, not a corporation. This distinction matters in the eyes of insurance companies.
Turo’s Protection Plans
So, what’s a savvy traveler to do? This is where Turo’s own protection plans come into play. Turo offers several levels of coverage for renters:
- Premier Plan: The most comprehensive option, covering up to $1 million in liability
- Standard Plan: A mid-range option with decent coverage
- Minimum Plan: Basic protection for budget-conscious renters
- Decline Coverage: For those who prefer to rely on their own insurance (more on this later)
Personal Experience: When I rented a Tesla Model 3 for a California road trip, I opted for the Premier Plan. It gave me peace of mind, knowing I was covered for any potential mishaps.
Credit Card Coverage: A Potential Lifeline?
You might be wondering, “What about my credit card’s rental car insurance?” It’s a great question, and one that I’ve investigated thoroughly. Many credit cards offer rental car coverage, but here’s the catch: most explicitly exclude peer-to-peer rentals like Turo.
However, there are exceptions. Some premium credit cards have begun to include coverage for car-sharing services. It’s worth checking with your specific card issuer to see if you’re one of the lucky ones.
The Owner’s Perspective: Protecting Your Asset
Now, let’s flip the script. You’re considering putting your car on Turo to earn some extra cash. Does your USAA policy have your back?
Quick tip: we have a guide that goes in detail about insurance for Turo Hosts and what best approach to take.
USAA’s Stance on Car Sharing
I hate to be the bearer of bad news, but USAA, like most personal auto insurers, typically excludes coverage for vehicles used in car-sharing services. When you list your car on Turo, you’re essentially using it for commercial purposes, which falls outside the scope of a personal auto policy.
Turo’s Owner Protection Plans
Don’t despair just yet. Turo offers protection plans for vehicle owners:
- 60 Plan: Covers up to $60,000 in damage, with Turo taking a 15% cut of your earnings
- 75 Plan: Covers up to $75,000 in damage, with a 25% cut for Turo
- 85 Plan: The most comprehensive plan, covering up to $85,000 in damage, with Turo taking a 35% cut
Real-world Example: A friend of mine listed his Jeep Wrangler on Turo using the 75 Plan. When a renter returned the car with a deep scratch on the door, Turo’s protection plan covered the repair costs, saving him from a hefty out-of-pocket expense.
Commercial Auto Insurance: A Viable Alternative?
For serious Turo hosts, investing in a commercial auto insurance policy might be worth considering. These policies are designed to cover vehicles used for business purposes, including peer-to-peer car sharing.
While it’s an additional expense, a commercial policy can provide more comprehensive coverage and potentially fill gaps left by Turo’s protection plans.
The Gray Areas: Tips and Best Practices
As we’ve seen, the world of insurance and car-sharing isn’t always black and white. Here are some tips to help you navigate the gray areas:
For Renters:
- Always read the fine print of Turo’s protection plans
- Consider purchasing stand-alone rental car insurance for your Turo rental
- Document the car’s condition with photos before and after your rental
- Never assume you’re covered – always verify your protection
For Owners:
- Inform USAA that you’re using your car for Turo (even if they won’t cover it)
- Keep detailed records of your Turo rentals and any incidents
- Consider setting aside a portion of your Turo earnings for potential out-of-pocket expenses
- Regularly review and update your protection plan as your circumstances change
A Word of Caution
Insurance regulations can vary by state. What’s true in California might not apply in New York. Always check the specific rules for your location.
As we wrap up this journey through the intricacies of USAA coverage and Turo, I hope you feel more equipped to make informed decisions.
Whether you’re looking to rent a unique vehicle for your next adventure or turn your car into a money-making machine, understanding your insurance options is crucial.
The sharing economy has opened up exciting new possibilities, but it’s also created new challenges for traditional insurance models. As peer-to-peer platforms like Turo continue to grow, we may see insurance companies adapt and offer more tailored coverage options.
For now, the key is to stay informed, ask questions, and always prioritize proper protection. After all, peace of mind is priceless, whether you’re behind the wheel of a borrowed sports car or watching your own vehicle drive off with a Turo renter.
So, does USAA cover Turo? The short answer is no, at least not in most cases. But with the right combination of Turo’s protection plans, careful planning, and perhaps some additional insurance coverage, you can still participate in the car-sharing revolution with confidence.
What’s your next move? Whether you’re booking your first Turo rental or listing your car on the platform, approach it with the same care and diligence you’d apply to any other major financial decision.
Happy driving, and may your Turo adventures be safe, exciting, and well-protected!