Ride-sharing apps like Uber and Lyft have become increasingly popular in recent years, as they offer a convenient and affordable way to get around. But what about when you want to rent a car for a day or two? That’s where Turo comes in. Turo is a car-sharing service that allows you to rent cars from others in your area. But does State Farm cover Turo rentals?
I will highlight all you need to know about State Farm and Turo in this article.
Does State Farm Cover Turo?
When it comes to car insurance, the answer to whether or not State Farm covers Turo is, well, it depends on whoever is asking the question. Whether a guest or a host. Most insurance companies such as Geico have been on record for not covering Turo for both hosts and Guests while others like Allstate and Progressive cover only the Guests.
Yes. State Farm does cover Turo. If you have a State Farm auto policy, it will extend to your Turo rentals. State Farm does not discriminate against peer-to-peer car-sharing platforms such as Turo. Read on to find the fine details you don’t want to miss.
However, it is important to note that State Farm will cover you up to the limits of your auto policy. The vehicle you are going to rent should be in the same class as the one you have a policy for. If you drive a brand-new full-size car and rent a compact car, you’re good to go. But if you own a regular car and you get a car with all the bells and whistles on Turo for the weekend trip, it gets tricky. Your policy will not cover you fully.
In this situation, you may need to beef up some coverage since you’ll be covered only up to the limits of your policy.
Even though State Farm haven’t indicated on its website that they cover Turo rentals, we carried out exclusive research and reached out to agents within our reach to get the information just for the peace of our readers. Read on.
If you have a policy with State Farm, make sure you confirm the coverage limits, and also it is advisable to talk to your State Farm agent before assuming that you are covered.
Read Also // Does USAA Cover Turo in 2023?-(For Guests and Hosts)
For Hosts, State Farm does not cover your car when you rent it out on the Turo platform. Just like Geico and Allstate, your State Farm personal auto policy will only cover you when you are driving your car.
As a general rule, Insurance follows the car, but this is not the case when your car is out for business use.
Your policy will cover a neighbor who borrows your car but not when you rent it on Turo. This is simply because renting is a business and State Farm like most insurance companies does not cover the business use of your car unless you get more coverage. (More on this below)
The reason why most insurance companies are skeptical about Turo is that Turo is some sort of a new problem in the market with a lot of frequent claims. This scares insurance companies.
The assumption is that if the renter damages a vehicle, the host will notice the damage and file a claim through Turo.
A host may delay inspecting the damage and will be late to make a claim with Turo. When a claim can no longer be filed through Turo, the host will file with their insurance provider saying that the car was damaged while it was parked. To avoid making losses some insurance companies avoid covering cars on Turo and others like Progressive, State Farm, and Allstate don’t declare publicly and to their customers that they cover guests on the Turo platform to avoid such menace that distracts business.
These are the options available for Turo hosts;
- Upgrade to a commercial policy
- Use Travelers protection package via Turo
Upgrade to a Commercial Policy;
Upgrading your personal auto policy is a way of getting your Turo car adequately covered. According to coverage.com, claims involving business vehicles are much more expensive than those involving personal vehicles. This explains why they are quite expensive. It might strain your finances more.
This is offered by Top companies such as;
- State Farm
Use Travelers Protection Package via Turo
In Turo, liability protection is available through Travelers Excess and Surplus Line Company. Remember that if in case you have personal insurance, it will kick in before your Turo protection plan.
It is important for a host to choose the protection plan that makes sense to him or her.
If you are opting for this protection, a percentage of the trip cost is taken by Turo.
Every protection plan includes liability insurance, physical damage reimbursement, and access to 24/7 road assistance.
Here are the 5 packages available for hosts;
|Protection Plan||Plan Price||Deductible|
|90||10% of the trip price||$2500|
|85||15% of the trip price||$1625|
|80||20% of the trip price||$750|
|75||25% of the trip price||$250|
|60||40% of the trip price||$0|
With a 60-protection plan, a host has to pay absolutely zero deductible but remember Turo takes 40% of the trip cost. It has benefits such as;
- Rental reimbursement coverage of up to $50 per day with a 10-day maximum.
- Exterior wear and tear reimbursement.
- Pays for loss of income while your vehicle is being repaired.
With the lowest protection plan being 90, Turo will take 10% of the trip cost and in case you get into an accident, there will be a $2500 deductible and no replacement vehicle reimbursement during a repair. Also, the 90-plan does not cover exterior wear and tear and also loss of hosting income during the repair.
For the 80 & 85 plan, they will be no replacement vehicle during the reimbursement, it does not include exterior wear and tear and loss of hosting income during the repair.
The 75 plan does not include exterior wear and tear and loss of hosting income during the repair but includes a $ 30-per-day replacement vehicle reimbursement during a repair.
You will choose between three protection plans which provide different levels of coverage;
These protection plans cost a percentage of your total trip price.
- Cost: 15% to 25% of the trip price. Minimum of $10/day.
- Third-party liability coverage: Minimum amount required by the state.
- Deductible: $3,000.
- Cost: 40% of the trip price. Minimum of $12/day.
- Third-party liability coverage: Minimum amount required by the state.
- Deductible: $500.
- Cost: 65% to 100% of the trip price. Minimum of $14/day.
- Third-party liability coverage: Up to $750,000.
- Deductible: $0
|Cost||65% to 100% of the trip price||40% of the trip price||15% to 25% of the trip price||No cost|
|Minimum charge per day||$14||$12||$10||No cost|
|Coverage limits||Up to 750,000|
Up to $1250000 in NY
|The minimum amount of third-party liability insurance coverage required by the state.||The minimum amount of third-party liability insurance coverage required by the state.||The minimum amount of third-party liability insurance coverage required by the state.|
To buy the premier package you must be 21 years or older. Also, it is not available for all vehicles or trips.
You May Also Read // Does Progressive Cover Turo?-(All You Need to Know)
Concluding Thoughts (Summary of Does State Farm Cover Turo)
In conclusion, Turo guests who have a personal auto policy with State Farm are going to be covered on their Turo car. It is important to be aware of your policy limits before going for that ride. If you get into an accident your policy will cover you up to its limits.
It is important to call your State Farm agent and have him/her assure you in writing that they are going to cover you in case of any unfortunate event.
For hosts, it is unfortunate that just like other insurance companies, State Farm does not cover your vehicle on Turo. It is advisable to get a commercial policy or a good protection plan.