Turo gives US hosts liability insurance and a damage reimbursement promise, not full car insurance. Here's what's covered, what isn't, and what it costs you.
When your car is on a Turo trip in the US, you get two things from Turo: third-party liability insurance of up to $750,000 through Travelers, and a promise to reimburse physical damage to your car above your plan's damage responsibility ($250, $1,500 or $2,750 per claim). The second part isn't insurance. Turo says so plainly: it's a contractual reimbursement, and Turo is not an insurance company.
What's not covered is where hosts lose money: wear and tear, mechanical failure, worn tires, lost income while the car is in the shop, and the drop in value after an accident. You also still need your own auto policy, and that policy probably doesn't cover the car while it's on a trip. Here's how each piece works and what it means in dollars.
What does Turo's liability insurance cover?
Liability covers other people: their injuries and their property, if your guest causes a crash. It does not pay for damage to your own car.
As of today, Turo's help center says every US earnings plan includes third-party liability insurance from Travelers Excess & Surplus Lines Company:
- Up to $750,000 combined single limit, except where a state or airport requires more.
- Personal injury protection and uninsured/underinsured motorist coverage only at the legal minimum where a state requires them. Turo has waived these or picked the lowest allowed limit.
- New York is different. For trips starting on or after June 17, 2026, New York cars default to state minimum limits, with a $300,000 option on the More Peace of Mind plan. If you host in New York, read the plan details for your exact trip dates.
What does Turo pay when a guest damages your car?
This is the physical damage reimbursement. Turo pays eligible repair costs above your damage responsibility. If the car is a total loss, it pays the car's actual cash value, capped at $200,000. Actual cash value is what a car of the same year, make, model, mileage and condition sells for locally before the damage. It's not what you paid, and it's not what you owe.
Your damage responsibility depends on your earnings plan:
| Plan | Host share | Damage responsibility per claim |
|---|---|---|
| More Peace of Mind | 70% | $250 |
| Balanced | 80% | $1,500 |
| More Earnings | 90% | $2,750 |
That amount applies to every kind of physical damage: body, interior, glass, tires and mechanical damage caused during the trip. We covered how to pick a plan in Turo earnings plans explained.
One state exception: in Washington, physical damage is covered by insurance Turo buys. Turo says that doesn't change what hosts or guests are responsible for.
What does Turo's plan not cover?
Per Turo's help center, these are excluded on every US plan:
- Exterior wear and tear: dings, dents, cracks or scratches 3 inches or smaller.
- Interior wear and tear: fading, minor scuffs, failed dials or switches. Cuts or punctures from guest misuse are not counted as wear and tear.
- Mechanical failure and mechanical wear. If the car is under warranty, the manufacturer's coverage comes first.
- Tires that were defective, worn, dry-rotted, under 4/32 inch of tread, badly inflated before the trip, or 6 or more years old.
- Underbody scrapes, truck bed dings from loading, and minor scuffs on non-painted Jeep Wrangler hard tops.
- Damage during the delivery period. Liability applies, physical damage reimbursement doesn't.
- Pre-existing damage, and damage that happens while you're breaking Turo's terms of service.
- Personal items left in the car.
- Diminished value, meaning the car is worth less after an accident even once it's fixed.
- Lost hosting income and a replacement car. US earnings plans don't include either.
That last one adds up fast: the car earns nothing while it's in the body shop.
What does a claim actually cost you?
Here's an example. The numbers are made up to show the math, not averages.
A guest backs into a pole. Repairs come to $4,000. The car is on the Balanced plan, rents for $55 a day, and normally books about 60% of days. The shop has it for 14 days.
| Cost to you | Amount |
|---|---|
| Damage responsibility (Balanced) | $1,500.00 |
| Lost bookings: 14 days × 60% × $55 × 80% | $369.60 |
| Out of pocket from one claim | $1,869.60 |
Turo pays the other $2,500 of the repair. You also might lose some resale value from the accident history. That isn't reimbursed either.
Same claim on More Peace of Mind: $250 + $369.60 = $619.60. On More Earnings: $2,750 + $369.60 = $3,119.60.
Now a small one. A guest leaves a 2-inch scratch on the bumper and a body shop quotes $350 to fix it. Under 3 inches counts as wear and tear, so the plan pays nothing on any plan. You pay all $350 or live with the scratch.
What happens if the car is totaled?
Turo pays actual cash value, minus your damage responsibility. If you financed the car, the gap between that payment and your loan balance is yours to cover.
Example, again with made-up numbers: you owe $16,000 on the loan, and the car's actual cash value is $13,500. You're on Balanced.
- Turo pays: $13,500 − $1,500 = $12,000
- Still owed on the loan: $16,000 − $12,000 = $4,000
To get paid on a total loss, you either sign the title over to Turo or accept a lower payout based on the highest salvage quote. Ask your insurer or lender whether gap coverage applies while the car is on Turo. More on loans in financing vs paying cash for a Turo car.
Do you still need your own car insurance?
Yes. Turo says you still need your own policy, and that your personal insurance likely has an exclusion that voids coverage while the car is on a trip. The same applies during delivery.
Your own policy is what covers the car between trips, like when you drive it to the mechanic. Before you list, call your insurer and ask three direct questions:
- Does my policy exclude peer-to-peer car sharing?
- Will listing the car on Turo affect my coverage when it isn't on a trip?
- Do you offer a policy that allows car sharing, and what does it cost?
Don't skip this. Turo and its insurance agency don't advise on whether your personal policy applies, so the answer has to come from your insurer.
How do you protect your claims?
Turo's rules are strict, and a late report can cost you the reimbursement:
- Take pre-trip photos within 24 hours before the trip starts, and upload them within 24 hours after it starts.
- Take and upload post-trip photos within 24 hours after the trip ends. Photos need date, time and location data.
- Report damage within 24 hours after the trip ends.
- Send all claim documents within 15 days of reporting.
- Check the repair shop. Since August 18, 2026, repairs at some facilities aren't reimbursed. In California the shop must be registered with the Bureau of Automotive Repair.
- Keep itemized invoices and proof of payment. Cash receipts alone aren't enough if Turo asks.
- Keep tires above 4/32 inch and under 6 years old. Otherwise a tire claim is excluded before anyone looks at it.
How much should you set aside?
Since claims, deductibles and downtime aren't covered, plan for them like any other cost. A simple way: pick how many claims a year you expect per car, multiply by your damage responsibility plus a couple of weeks of lost bookings, and add your personal insurance premium. Then see if the car still makes money.
Using the example car above with one claim a year on Balanced, that's $1,869.60 a year, or about $155.80 a month, before the insurance premium. If a car can't carry that, a lower plan or a different car may be the better call.
The bottom line
- Turo gives you liability insurance, up to $750,000 in most states, which covers other people, not your car.
- Damage to your car is a reimbursement, not insurance, and you pay the first $250, $1,500 or $2,750 of every claim.
- Wear and tear, mechanical failure, worn tires, lost income and diminished value are on you.
- Keep your own policy, and ask your insurer in writing how it treats car sharing.
FleetEarnings tracks damage claims, insurance and registration documents with expiry alerts, and every expense per car, so you can see what claims really cost each car. Run your own numbers in the Turo profit calculator.
Sources: Turo help center pages on earnings plans for US hosts, reporting damage, ineligible invoices and damage reports and wear and tear; Turo's vehicle protection page. Checked October 21, 2026. FleetEarnings is not affiliated with Turo, Inc.