If you’re like most people, you probably have insurance for your car. But what happens when you want to rent out your car or rent a car using a service like Turo? Does your insurance cover you?
I have included tabulated data in the last part of this article.
It’s an excellent question to ask, and one that we will answer in this article.
Does USAA Cover Turo?
This is a question that we cannot give a short answer to. The answer depends on whoever is asking it. 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 State Farm, Allstate, and Progressive cover only the Guests.
For Guests;
Yes. USAA does cover Turo. If you have a USAA auto policy, it will cover your Turo rentals. USAA does not discriminate against peer-to-peer car-sharing platforms such as Turo. Keep reading to find the fine details you don’t want to miss.
However, it is important to note that USAA 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 USAA haven’t indicated on its website that they cover Turo rentals, we carried out exclusive research and talked to them on phone to get the information just for the peace of our readers. Read on for more.
If you have a policy with USAA, make sure you confirm the coverage limits, and also it is advisable to talk to your USAA agents before assuming that you are covered.
Read Also // Does USAA Cover Turo in 2023?-(For Guests and Hosts)
For Hosts;
For Hosts, USAA does not cover your car when you rent it out on the Turo platform. Just like Geico, Progressive, State Farm, and Allstate, your USAA personal auto policy will only cover you when you are driving your car.
Generally, 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 USAA like most insurance companies does not cover the business use of your car unless you get more coverage.
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, Allstate, etc, don’t declare publicly and to their customers that they cover guests on the Turo platform to avoid such menace that distracts business.
Read Also// Does State Farm Cover Turo Rentals?-(Turo Insurance)
Insurance Options
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;
- Progressive
- Allstate
- Geico
- 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.
For Hosts
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 May Also Read // Does Progressive Cover Turo?-(All You Need to Know)
For Guests
You will choose between three protection plans which provide different levels of coverage;
- Premier
- Standard
- Minimum
These protection plans cost a percentage of your total trip price.
Minimum
- 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.
Standard
- Cost: 40% of the trip price. Minimum of $12/day.
- Third-party liability coverage: Minimum amount required by the state.
- Deductible: $500.
Premier
- Cost: 65% to 100% of the trip price. Minimum of $14/day.
- Third-party liability coverage: Up to $750,000.
- Deductible: $0
| Coverage | Premier | Standard | Minimum | Decline |
|---|---|---|---|---|
| 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 Geico Cover Turo?-(For Hosts and Guests
Concluding Thoughts (Summary of Does USAA Cover Turo)
In conclusion, Turo guests who have a personal auto policy with USAA 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.
For hosts, it is unfortunate that just like other insurance companies, USAA does not cover your vehicle on Turo. It is advisable to get a commercial policy or a good protection plan.
It is important to call your USAA agent and have him/her assure you in writing that they are going to cover you in case of any unfortunate event.