When it comes to renting out your car, Turo is one of the most popular platforms. What Percentage does Turo take? In this article, we’ll give you a breakdown of Turo’s fees so that you can make an informed decision about whether or not it’s the right platform for you.
How Much Does Turo Take?
If you’re thinking about using Turo to rent out your car, you might be wondering how much the company takes in commission. Here’s an answer: Turo takes a 10-40% cut-off for each rental. This depends on the protection plan you choose as a host. It is important for a host to choose the protection plan that makes sense to him or her.
What Percentage Does Turo Take?
Hosts can increase their earnings by choosing higher protection package levels, which can reduce their commission fees.
Each plan has a different take rate and a different deductible
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.
What Percentage Does Turo Take from Host?
Well, according to Turo’s host agreement, they take 10-40% of the total trip price, depending on the protection plan.
Turo’s protection plans vary in terms of cost and coverage. The lowest protection plan, which costs $90, covers the basics but has some limitations. Turo will take a 10% commission from the trip cost, and if you get into an accident, there will be a $2500 deductible. There is no replacement vehicle reimbursement during repairs, and the plan does not cover exterior wear and tear or loss of hosting income during repairs.
For the 80 and 85 plans, there is also no replacement vehicle reimbursement during repairs, and these plans do not cover exterior wear and tear or loss of hosting income during repairs.
The 75 plan does not cover exterior wear and tear or loss of hosting income during repairs but includes a $30-per-day replacement vehicle reimbursement during repairs.
Read Also // How Much Can I make on Turo?-An eye-opening Guide
Why are Turo fees so high?
Turo is a car rental platform that allows people to rent their personal vehicles to others. The company takes a 40% commission on all rentals, which is significantly higher than other car rental companies. So, why are Turo fees so high?
There are a few reasons for this. First, Turo is a relatively new company, so they are still working on building up its brand and customer base.
In order to attract customers, they need to offer competitive rates. Second, Turo operates in a very niche market – peer-to-peer car rentals.
This means that there is less competition, so they can charge higher prices.
Third, and most importantly, Turo takes a much higher risk than traditional car rental companies. Turo does not own any of the vehicles on its platform – they are all owned by individual people.
This means that if something goes wrong with the vehicle, or if the renter damages it, Turo is on the hook for the repairs or replacement costs. Given this risk, it’s not surprising that they charge higher fees.
Is Turo a Good Way to Make Money?
Turo can be a good way to make money for some people, especially those who own vehicles that they are not using regularly. By renting out their cars on Turo, hosts can earn money to offset the cost of owning and maintaining a vehicle.
The amount of money that can be earned on Turo depends on various factors such as the location, the type of vehicle, the demand for rentals, and the pricing strategy. Hosts can set their own rental prices, but they should consider the market rates and adjust their prices accordingly to attract renters.
Turo offers various protection plans that hosts can choose from to protect their vehicles during rentals. However, hosts should also be aware of the potential risks of renting out their vehicles, such as accidents, damages, and theft. Hosts should also be prepared to handle customer service and communication with renters.
Conclusion
All in all, Turo is a great platform for those looking to rent out their vehicles. While the percentage that Turo takes may seem high, it’s important to remember that they are providing a valuable service that connects renters with Vehicle owners. Without Turo, many people would not have access to the vehicles they need.