How Does Turo Work?-(Earnings, Insurance, Security Deposit + Others)

How Does Turo Work
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Turo is becoming more popular alternative to a traditional car rental companies. It is a peer-to-peer car-sharing marketplace that allows you to rent cars from private owners.

Founded in 2010 and based in San Fransisco, the company allows private car owners to rent out their vehicles via an online and mobile interface in more than 5,500 cities across the US, UK and Canada.

So, how does Turo work?

In this article, I’m going to dissect step by step how Turo works.

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Overview: How Does Turo Work?

If you’re not familiar with Turo, it’s basically the Airbnb of car rentals. You can rent cars from people in your city, or even from other cities if you’re planning a road trip.

Turo’s peer-to-peer car sharing marketplace connects car owners with short-term renters. They offer short-duration trips from a few hours to multiple days and weeks.

Hosts list their cars on the platform as available in a specific location at a specific time.

For renters, first, create an account and enter some basic information about yourself. Then, you browse the available cars and choose the one that you want to rent.

Once you’ve found the perfect car, you contact the owner who then approves it and arranges a time to pick it up.

When you’re ready to return the car, simply drop it off at the agreed-upon location. It’s that easy!

How Does Turo Work?

How Does Turo Work: Booking a Car.

Finding a Perfect Car

You can go to the websiteOpens in a new tab. or app and select “Book a car” button.

Then you will be taken to a search menu where you will be asked to enter the place you need the car.

The options are; city, airport, hotel, or specific address.

Enter a location and date (time of pick up and drop off) and browse thousands of cars shared by local hosts.

You can also use the map on the dashboard to find the nearest Turo car rental.

Searching for available rental cars around you using a map

Clicking on the blue dots gives you the specifications of the rental cars available.

Searching for available rental cars around you using a map

Each Listing shows;

  • A picture of the car
  • The model and the year of the car
  • The number of trips it has made on Turo
  • The car rating out of 5 stars from previous renters
  • Car Features eg. automatic, electric etc.
  • Trip start and trip end
  • Discount if available
  • Guidelines
  • Pick up and return location

Messaging Your Host

After selecting the perfect match for your trip, set the date, time and location of pick up and drop off.

Then click the continue tab and go on to book your car.

To message your host, you must first submit a booking request or have a booked trip. If your decision to book a car is contingent on a question, carefully check the information in the listing to see if it can be of any help.

If you cannot find an answer, submit a trip request and follow up with a message to the host asking them to answer your question before accepting your trip request.

If the host accepted the trip and then answered your question, you can cancel the trip immediately for a full refund.

For “Book instantly”, your trip request is automatically accepted but you can still message your host and cancel if the answer isn’t what you expected.

Age Requirements

Age requirements are applied based on your age at the time you book a trip, not on the age you’ll be when the trip takes place.

In the US, age 18-21, you can’t decline a protection plan or choose Premier protection. You must choose either the Minimum protection plan or the Standard protection plan.   

Commercial Hosts set their own age restrictions for certain vehicle types and their own fees for young drivers. They must disclose this information in their vehicle listing.

LocationTrips with all hostsTrips with a peer-to-peer hostTrips with a Commercial Host
United StatesMust be 21 or older to book a car with a total market value of more than $20k.
Must be 25 or older to book a Deluxe Class car.
Must be 30 or older to book a Super Deluxe Class car or a speciality vehicle. 
Must be 18 or older to book a trip with a peer-to-peer host.
If you’re aged 18-20, you’ll pay a minimum Young driver fee of $50/day. 
If you’re aged 21–25, you’ll pay a minimum Young driver fee of $30/day. 
You must be 21 or older to book a trip with a Commercial Host.
 They set their own age restrictions for certain vehicle types and their own fees for young drivers.
CanadaMust be 23 or older to book a car in Canada. 
Must be 25 or older to book a Deluxe Class car.
Must be 30 or older to book a Super Deluxe Class car or a speciality vehicle. 
None Commercial Hosts set their own age restrictions for certain vehicle types and their own fees for young drivers.

United Kingdom
Must be at least 21 and no older than age 74 to book a car in the UK.
If under age 25, you can only book cars identified as Group 1-16 vehicles by the Association of British Insurers
Must be 25 or older to book a Deluxe Class car and 30 or older to book a Super Deluxe Class car.
If you’re under the age of 25, you must pay a minimum £25/day Young Driver feeCommercial Hosts set their own age restrictions for certain vehicle types and their own fees for young drivers.
Other regions outside the US, Canada and the UKMust be 21 or older to book a car Must be 21 or older to book a car Commercial Hosts set their own age restrictions for certain vehicle types and their own fees for young drivers.

How Does Turo work: Adding a Driver to a Trip

For a smooth approval process, have your driver create an account in Turo and get approval to drive before you submit your request to add them to your trip.

Ensure your driver meets the age requirements for the car you’ve booked. It is also advisable to submit your request earlier(at least 24 hours) before your trip starts since the verification process may take longer in case additional documentation is required.

You should also note that you will assume all financial responsibility for the car during the trip and if you allow anyone who wasn’t approved by Turo to drive, it will void your protection plan.

There is no additional charge for this process.

How to add a driver to a trip;

  1. Log onto Turo or sign into the app and open the Trips tab
  2. Choose Booked and open the trip you’re interested in
  3. Scroll down to the section labelled DRIVERS
  4. Tap “Add driver”
  5. Enter the email tied to your driver’s Turo account: if they don’t have an account, enter a valid email they check regularly
  6. Advise your additional driver to look for an email from Turo.

Driving the car

After meeting all the requirements and getting that Turo car rental, the car is now yours and you can travel wherever you want with it while operating within your policy.

However, there are a few things to keep in mind;

  • In case of any damage, contact Turo as soon as possible
  • Turo offers 24/7 road assistance
  • When you pass through toll booths, the owner of the car will be billed and they will later pass the fee to you by sending a reimbursement invoice to Turo.

How Does Turo Work: Listing a Car.

To list on Turo, you must be at least 21 years old in the US and Canada, and at least 18 years old in the UK.

You should also have valid insurance and you should also meet the legal requirements for your region.

Listing a car

If you have already created an account, you are just a step to listing your car. You have to verify your email, verify your phone, add your driver’s license and expiration date, add your home address and upload a recent photo showing your face for the Turo profile.

Listing a car on Turo requires the Host to provide the following details;

  • License plate number
  • Make model and year
  • Vehicle Identification Number (VIN)
  • Clear photos of your car(high resolution)
  • A detailed description of your car

Pricing your car

There are a few things to consider when pricing your car on Turo. First, what is the going rate for similar cars in your area? You don’t want to price yourself too high and risk not getting any bookings, but you also don’t want to price yourself too low and make less money than you could be making.

Another thing to consider is what kind of amenities and features your car has. If your car is newer or has special features like GPS or leather seats, you can charge a bit more than the going rate.

Hosts can find a fair rental price by using Turo Calculator which they refer to as a “carculator.”

It will request your car’s make, model, and year, as well as your rental location.

This calculator works by comparing the prices of other rental cars with the same listings and gives you a competitive price.

Currently, the “carculator” is only available in some US and Canadian cities.

Your earnings will depend on your car’s availability, price, demand and market seasonality in your area.

Responding to trip requests and changes

You will receive a notification via text, email, and/or the app when a guest requests to book a trip or to change a trip they’ve already booked with you.

Hosts have between 30 minutes and 8 hours to respond to rental requests.

For “Book instantly”, the system will automatically accept booking requests for you. 

If approved, it goes into their schedule, and the car becomes unavailable for the rental period.

How Does Turo Work: Returning a car.

Dropping off

When you schedule your trip, you cannot choose a different location for pickup and return. However, you can ask to change the pickup or drop-off location once the trip has been scheduled. You can still ask to modify the return location after the trip has begun.

The host must already offer pickup at the new location or it must be within their designated pickup area.

Your request must be accepted or rejected by your host within 8 hours (or less if your trip begins or finishes earlier than that).

If they don’t respond or decline your request, you’ll have to return the vehicle to the original pickup spot.  

If you just alter the drop-off location, the new pickup charge will be determined by adding 50% of the pickup fee for the original site and 50% of the new location.

How Does Turo Work -Late Return Fee

If you are running late, you can submit a trip extension. Hosts should encourage guests to extend and accept extension requests whenever possible.

Guests are able to submit an extension request at any time during their trip and up to six hours after the trip’s scheduled end time.

The following additional usage charges apply;

  • 0-29 minutes late: No charge
  • 30 minutes to 1 hour 59 minutes late: ½ the average daily trip price; $50 improper return fee at Turo’s discretion
  • 2 hours or more late: Average daily trip price for 1 day + $20 late return fee; $50 improper return fee at Turo’s discretion 

You May Also Like // Turo Cancellation PolicyOpens in a new tab.

How Does Turo Work: Payments.

Turo accepts a variety of payment methods. They accept credit cards from major financial institutions, including American Express and Discover. You can also use debit cards, Apple Pay and Google Pay, and Revolut prepaid card only. All these payment methods should be in the primary guest’s name.

Hosts are paid for rentals through Stripe. You will have to enter your bank information in Stripe to set up a direct deposit. For the first completed trip, Turo typically initiates payment three business days after the trip ends. For Subsequent trips, payment is initiated 3 hours after the trip ends. Trips lasting longer than a week are paid in weekly installments. They will issue no more than one payout a day.

To better understand Turo payment framework also check our posts Does Turo Charge right awayOpens in a new tab. and Turo debit card policyOpens in a new tab..

How Turo Insurance works | How Does Turo Work for Insurance

Turo offers protection plans through Travelers Excess and Surplus Lines Company for a fee.

Most of the major credit card networks, including VisaOpens in a new tab., Mastercard and American ExpressOpens in a new tab. all offer some form of rental car coverage for cards on their networks.

Turo is a peer-to-peer car sharing service rather than a rental agency and therefore it doesn’t qualify.

Instead of stressing about credit card coverage, you can opt for coverage plans offered by Turo at an additional cost.

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.

Insurance For Renters

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 PlanCostMinimum Charge per DayCoverage limitsDetails
Premier65% 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.
Standard40% of the trip price$12The minimum amount of third-party insurance coverage is 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. 
Minimum15% to 25% of the trip price$10Includes 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
DeclineNo costNo costYou’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.
How Does Turo Work for Insurance?

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.

Insurance For Hosts

It is important for a host to choose the protection that makes sense to him/her.

Every protection plan includes liability insurance, physical damage reimbursement, and access to 24/7 roadside assistance.

Protection PlanPlan PriceDeductibleDetails
9010% of trip cost.$2500No replacement vehicle reimbursement during repair
Doesn’t include exterior wear and tear reimbursement
Doesn’t include loss of hosting income during the repair
8515% of trip cost.$1625No replacement vehicle reimbursement during repair
Doesn’t include exterior wear and tear reimbursement
Doesn’t include loss of hosting income during the repair
8020% of trip cost.$750No replacement vehicle reimbursement during repair
Doesn’t include exterior wear and tear reimbursement
Doesn’t include loss of hosting income during the repair
7525% of trip cost.$250Rental reimbursement coverage of up to $30/day
10-day maximum.
Doesn’t include exterior wear and tear reimbursement
Doesn’t include loss of hosting income during the repair
6040% of trip cost.$0Rental reimbursement coverage of up to $50/day with a 10-day maximum
Includes pay for loss of hosting income while your vehicle is repaired.
Exterior wear-and-tear reimbursement.
How Does Turo Work for Insurance?

How does Turo work? Does Turo take a Deposit?

How Does Turo Work? Does Turo take a deposit?
How Does Turo Security Deposit Work?

Deposits are designed to create a safety net for car owners and renters alike, and can vary depending on factors, like the type of car, the renter’s age, and the rental duration. Lets take a closer look to insure a smooth rental experience for the upcoming trip.

Turo Security Deposit: What is it?

A Turo security deposit is pre-authorired hold on the card of the renter. It helps to cover any potential damages, additional fees, or other unexpected costs that may arise during the rental period.

After a successful completion of the trip the deposit is going to be released if there are no issues reported upon return. Deposit may be used for additional charges associated with the trip for example late fees or damage claims.

Factors Affecting on how does Turo charge a Deposit

The Turo security deposit may vary and is effected by some factors that we outline further. It is important to be aware and have enough funds to secure rental car.

Type of car

The amount of deposit highly impacted by the value of the rented vehicle. Luxury and high-performance vehicles often require a higher deposit than more budget-friendly options.

Renter’s Age

Younger drivers, typically under 25, may be required to pay a higher security deposit. This is because younger drivers are often perceived as riskier, with a higher likelihood of accidents or other issues. 

Trip duration

Longer trips may require a bigger deposit as the risk for potential issues increases with time.

Renter’s history with Turo

Higher deposit may be required for renters with a history of late returns, issues and damage claims.


Local laws, taxes and insurance requirements can influence may effect deposit amount for the Turo rental.

How Much is Turo Security Deposit? How to Calculate the Amount

Turo calculates security deposit amounts based on various factors. The deposit amount is displayed as a separate line item on the checkout page. It is also processed as a separate transaction. By understanding these factors, renters can make informed choices and better prepare for the deposit requirements.

To properly calculate your Turo security deposit amount, consider the following:  

Vehicle Type and Value

One of the main factors Turo considers when calculating deposit amounts is the type and value of the rented vehicle. Cars are grouped into different categories based on their market value and features:

Economy and standard vehicles

Everyday cars that offer basic features and functionality that the deposit amount for these vehicles is generally lower, making them more accessible and affordable for a wider range of renters. $200 deposit required if Turo’s security system chooses your trip for a deposit.

Upscale and luxury vehicles – Delux Class

Larger deposit is required for higher-end vehicles, such as sports cars and luxury sedans. $750 deposit required for guests under the age of 30 who book Deluxe Class vehicles; guests must be 25 or older to book.

Specialty and unique vehicles – Super Delux Class

The more unique and custom made the car is, including classic or collector vehicles, the need for a larger deposit arises to protect the car owner. $750 deposit required for all guests who book Super Deluxe Class vehicles; guests must be 30 or older to book.

Renter’s Age and Driving History

Turo also considers the renter’s age and driving history when determining the deposit amount.

Factors that can influence how does Turo charge a deposit amount based on the renter’s profile include:

  • Age: Drivers under 25 may be required to pay a higher deposit.
  • Driving history: Renters with a record of accidents or traffic violations may face increased deposit amounts.
  • Turo platform history: Users with a history of late returns, damage claims, or other issues on Turo may be subject to higher deposits.

Insurance Coverage

The level of insurance coverage chosen by the renter can also impact Turo security deposit amount. Turo offers various insurance options, ranging from basic to premium coverage. 

Renters who opt for a higher level of coverage may benefit from a lower deposit amount, as the insurance policy provides an additional layer of protection for both the renter and the car owner. You can receive a $250 discount on your deposit in some cases by submitting your personal insurance information at the time of booking.

Security Deposit Refund Process

By understanding the deposit refund process and the conditions for a full refund, renters can better navigate the Turo experience and avoid unexpected deductions. Here are some of the details involved:

Timeline for Turo Security Deposit Refund

After a successful Turo trip, renters are eager to know when they’ll get their deposit back. The refund typically begins once the trip is complete and the car owner confirms the vehicle’s condition. Here’s a general timeline for deposit refunds:

Initial refund processing

Refund process will start within 3 business days after the trip allow the car owner to check the vehicle and report any issues.

Bank processing time

It can take 3-10 business days, depending on the bank after Turo initiates the refund.

Total time

In most cases, deposit is credited back within 10-14 business days after the trip ends.

Conditions for a Full Turo Security Deposit Refund

It is always beneficial to check and follow Turo’s guidelines like:

  • Return the vehicle in the same condition as received.
  • Stick to the agreed-upon mileage limit for the trip.
  • Refuel the vehicle to the same level as at the trip’s start.
  • Avoid smoking, pet damage, or other violations of Turo’s policies.
  • Return the vehicle on time, as per the agreed-upon schedule.

Tips for Renters to Ensure a Smooth Turo Security Deposit Return Process

Here are some helpful tips for renters to avoid any potential issues with their Turo security deposit.

Clear Communication with Car Owners

  • Prior to the trip, discuss any questions or concerns about the vehicle, its features, or the rental process.
  • Make sure to clarify the agreed-upon mileage limit, fuel level, and other requirements.
  • If you there are any changes to the trip, talk to the owner of the car and get their approval as soon as possible.

Conclusion – (Summary of How Does Turo Work)

In conclusion, Turo is a car-sharing company that allows individuals to rent out their personal vehicles to others. The process is simple and easy to use, and it provides an affordable and convenient option for those in need of transportation. If you’re looking for a way to save money on your next car rental, Turo may be the perfect solution.

How much is the security deposit for renting a car on Turo?

The deposit for renting a car on Turo varies depending on factors like vehicle value, renter’s age, and insurance coverage. There’s no fixed deposit amount.

How does Turo calculate the security deposit for each rental?

Turo calculates the deposit based on factors like vehicle type and value, the renter’s age, driving history, and insurance coverage chosen by the renter.

When is the security deposit refunded after a Turo rental?

The deposit is typically refunded after 80 hours from the end of the rental, provided there are no outstanding claims or issues.

Are there any potential deductions from the security deposit on Turo?

Yes, deductions from the deposit on Turo can occur for damage, tolls, tickets, cleaning fees, or other additional charges incurred during the rental.

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Chelsea Gates is one of our writers who is a big fan of travel and road trips. Car is an essential part of travel in the USA and car rental services are an excellent way to get around and to create an exciting unique trip. It can be challenging to navigate rules and regulation among different rental companies and states. As an author for this blog Chelsea shares her experience and tips on all rental services that she had to navigate during the travel. She is always on the move and shares her views and discoveries with our readers.

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