Ever caught yourself browsing Turo, imagining cruising in that dream car on your next getaway? Or maybe you’re thinking about listing your own vehicle to make some extra income.
Either way, if you’ve been wondering whether your personal insurance, like Progressive, will have your back while using Turo, you’re not alone.
The Progressive Perspective (For Renters and Customers)
When I first considered listing my car on Turo, I immediately reached out to my Progressive agent. Their response? A polite but firm “no.” But what does this really mean for you and me?
- Standard policies don’t cover commercial use: Progressive, like most personal auto insurance providers, explicitly excludes coverage for vehicles used for commercial purposes.
- Turo is considered a commercial activity: When you list your car on Turo, you’re essentially entering the car rental business, even if it’s just part-time.
This stance isn’t unique to Progressive.
In fact, it’s industry standard. But why? Well, it’s all about risk assessment.
Insurance companies carefully calculate premiums based on personal use patterns.
Renting your car out introduces a whole new set of variables and potential risks that your standard policy simply isn’t designed to cover.
What about customers?
Just like USAA, Progressive does not typically cover vehicles rented through Turo under standard personal auto insurance policies.
This is because Turo, as a peer-to-peer car-sharing platform, falls into a different category than traditional rental cars.
While Progressive offers coverage for conventional rental vehicles, Turo rentals are considered distinct and require separate protection plans, which are usually provided by Turo itself.
Customers using Turo should be aware that they may need to purchase additional coverage through Turo’s protection plans to ensure adequate insurance during their rental period.
Turo’s Insurance Options: A Safety Net for Owners and Renters
When I realized my Progressive policy wouldn’t cut it, I turned to Turo itself for answers. And I was pleasantly surprised by what I found.
For Car Owners:
Turo offers protection plans that act as a substitute for your personal insurance while your car is being rented. These plans come in different levels:
- 60 Plan: Offering 60% of the trip price and $750,000 in liability coverage
- 70 Plan: Providing 70% of the trip price and $750,000 in liability coverage
- 80 Plan: Giving 80% of the trip price and $750,000 in liability coverage
- 90 Plan: The most comprehensive, with 90% of the trip price and $750,000 in liability coverage
Each plan also includes varying levels of protection against physical damage to your vehicle.
For Renters:
If you’re looking to rent a car through Turo, you have options too:
- Premier Plan: Offers the lowest deductible and includes roadside assistance
- Standard Plan: A mid-range option with a higher deductible
- Minimum Plan: The most basic coverage with the highest deductible
- Decline Coverage: For those who prefer to rely on their personal auto insurance or credit card coverage
It’s worth noting that these plans can vary by state and are subject to change, so always check the current offerings before making a decision.
In a previous article, we dive deeply into the intricacies of the insurance options with Turo for Hosts.
The Gray Areas: Where Personal and Commercial Use Collide
Now, you might be wondering, as I did, about those gray areas. What if something happens while you’re driving to the meetup point to hand over your car? Or what if an accident occurs just after a renter returns the vehicle?
These scenarios highlight the complex dance between personal and commercial use. Here’s what you need to know:
- Transition periods: Generally, your personal Progressive policy would cover you while driving to meet a renter. However, once the rental period begins, Turo’s coverage takes over.
- Post-rental issues: If damage is discovered after a rental, it can be tricky to determine when it occurred. This is why thorough pre and post-rental inspections are crucial.
- Undisclosed commercial use: If you don’t inform Progressive that you’re using your car for Turo, and they find out after an incident, they could potentially deny your claim or even cancel your policy.
I learned the hard way that transparency is key.
When I finally decided to list my car on Turo, I made sure to inform Progressive, even though I knew they wouldn’t cover me during rentals.
This honesty helped maintain my personal coverage for when I use my car myself.
Related: Exploring Geico Coverage for Turo
The Road Ahead
As we’ve seen, the answer to “Does Progressive cover Turo?” is a bit more nuanced than a simple yes or no.
While your personal Progressive policy won’t cover your car during Turo rentals, there are robust insurance options available through Turo itself.
For car owners considering Turo, my advice is this: don’t let insurance concerns deter you entirely, but do your homework.
Carefully weigh the potential income against the risks and costs of additional coverage. And always, always be transparent with your insurance provider.
For renters, remember that your personal auto insurance likely won’t cover you in a Turo vehicle. Carefully consider Turo’s protection plans and understand what you’re agreeing to before you hit the road.
As the sharing economy continues to evolve, it’s likely we’ll see insurance products adapt to meet these new needs. Who knows? Perhaps in the future, Progressive and other major insurers will offer specific policies for peer-to-peer car sharing.
