Turo is a car-sharing marketplace that allows individuals to rent out their personal vehicles. American Express is a financial services company that offers credit cards and other financial products.
Most of the major credit card networks, including Visa
, Mastercard, and American Express all offer some form of rental car coverage for cards on their networks.
But is Turo a rental company? What does “a rental company” in Amex mean?
Read through to find out how you can maneuver around this, having in mind that Turo is not a rental company but a peer-to-peer car-sharing platform.
Read it till the end!
Does Amex Cover Turo?
The short answer is no, Amex does not currently offer any coverage for Turo rentals.
“Coverage is not available for ride-sharing companies that allow individuals to rent out their personal vehicle,” according to the fine print from the American Express Premium Car Rental Protection program.
However, that doesn’t mean you’re completely out of luck. There are a few things you can do to make sure you’re protected in case of an accident.
First, it’s important to understand your personal auto insurance policy. If you have comprehensive and collision coverage, your regular policy may extend to cover a rental car from Turo. Check with your insurer to be sure. If you don’t have comprehensive and collision coverage, or if your policy doesn’t extend to rentals, you can purchase supplemental insurance from Turo itself.
Either way, it’s important to understand what coverage you have before renting a car from Turo.
American Express provides coverage for secondary car rentals, including on some of their cards such as the American Express Gold Card and The Platinum Card.
American Express does not cover vehicle sharing or peer-to-peer arrangements that allow people to rent other people’s personal vehicles.
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What Credit Cards Cover Turo?
Typically, Credit cards don’t provide insurance coverage for damages, injuries, or liabilities when you book a car rental through Turo.
Normally, credit card insurance kicks in to offer secondary insurance(meaning after your personal auto insurance policy) or damage waivers for traditional car rentals, Turo is a peer-to-peer car-sharing service rather than a rental agency and therefore it doesn’t qualify.
After extensive research, none of the major U.S. credit card issuers we contacted provide coverage for Turo rentals.
Instead of stressing about credit card coverage, you can opt for coverage plans offered by Turo at an additional cost.
Some cards such as Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, United℠ Explorer Card, United Club℠ Infinite Card, Capital One Venture X Rewards Credit Card, etc – offer primary coverage for rental cars, meaning it pays out first, and you don’t have to get your own insurer involved.
Coverage Through Turo-(Costs and Limits)
In the US, your personal insurance covers damages to the host’s vehicle before your Turo protection plan except for limited situations such as for trips booked in Maryland.
In Turo third liability insurance is available through Travelers Excess and Surplus Lines Company.
When booking a car in the US, you will choose between three protection plan which provides different levels of coverage;
- Premier
- Standard
- Minimum
These protection plans cost a percentage of your total trip price.
| Protection Plan | Cost | Minimum Charge per Day | Coverage limits | Details |
|---|---|---|---|---|
| Premier | 65% to 100% of the trip price | $14 | $750,000 $1250,000 in New York | Coverage is secondary to any personal insurance you may have, except in New York where liability insurance will always be primary. Not available for drivers below 21 years. |
| Standard | 40% of the trip price | $12 | The minimum amount of third-party insurance coverage required by the state. -Limits your responsibility to $500 for physical damage to your host’s vehicle. | Coverage is secondary to any personal insurance you may have, except in New York where liability insurance will always be primary. |
| Minimum | 15% to 25% of the trip price | $10 | Includes the minimum amount of third-party liability insurance coverage required by the state where the car is registered. -Limits your responsibility to $250 for physical damage to your host’s vehicle. | -15% of the trip price when the trip price is more than $250 -25% of the trip price when the trip price is less than $250 |
| Decline | No cost | No cost | You’ll receive the minimum amount of third-party liability insurance coverage required by the state where the car is registered. | You’ll be responsible for all costs related to physical, mechanical, and interior damage. You’ll also be responsible for administrative claims fees and appraisal costs. |
Coverage limits vary from the minimum amount of third-party liability insurance coverage required by the state where the car is registered to up to $1250,000 in New York.
Do Chase Sapphire cards cover peer-to-peer car rentals?
No, you will not get rental car coverage with Chase Sapphire credit cards because chase does not consider Turo as a rental agency but as a peer-to-peer car-sharing platform.
Both the Chase Sapphire Reserve® and Chase Sapphire Preferred® Card cards offer primary auto rental collision damage waiver coverage when you decline the rental company’s collision damage waiver and pay for most types of rentals with your card.
The Chase Sapphire Preferred® Card covers an amount up to the “actual cash value” of a car, while the Chase Sapphire Reserve® offers coverage for $75,000 in damages.
One of the best rental car insurance policies is Chase.
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Credit Cards That Don’t Cover Turo Rentals
If you’re planning on using a Turo car rental, you might want to check your credit card coverage first. Many credit cards don’t cover Turo rentals, which means you could be left responsible for any damages that occur during your rental period.
Before you book a Turo rental, be sure to check with your credit card issuer to see if they provide coverage for this type of rental. If they don’t, you may want to consider purchasing additional insurance from Turo or another provider.
After extensive research, we found out the following credit card issuers don’t offer insurance for Turo rental vehicles;
- American Express
- Capital One
- Bank of America
- Citibank
- Chase
- PenFed Credit Union
- Discover
- Navy Federal Credit Union
- Fifth Third Bank
- USAA
- Wells Fargo
- U.S. Bank
Without proper coverage, you could be on the hook for thousands of dollars in damages if something happens to the vehicle while it’s in your care. Don’t let yourself be caught off guard – make sure you have the right coverage before you hit the road.
Does My Car Insurance Cover Turo?
If you’re thinking about renting your car out through Turo, you might be wondering if your car insurance will cover you in the event of an accident.
Unfortunately, the answer is not always clear-cut. While some insurers will cover you for accidents that happen while your car is being rented out, others will exclude this type of usage from their policies. And even if your insurer does cover you, there may be some restrictions on what types of coverage are available.
The best way to find out if your car insurance policy covers you for accidents that occur while your car is being rented out through Turo is to contact your insurer directly and ask. Be sure to have the details of your policy handy so that you can reference any relevant exclusions or restrictions.
Once you know what coverage is available to you, you can make an informed decision about whether or not renting out your car through Turo is right for you.
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Conclusion
Amex provides coverage for secondary car rentals, including on some of their cards such as the American Express Gold Card and The Platinum Card. American Express doesn’t offer primary coverage for a separate fee as Chase provides.