In recent years, the car rental industry has exploded in popularity, particularly in the United States.
Today, there are almost as many people renting cars as there are car owners but at the same time, they want to know does Geico cover Turo car rentals or not, so let’s find out.
One major player in this growth is Turo, a company that has become a leading name in the car rental business. Turo operates as a marketplace where customers can rent cars online.
Does Geico Cover Turo Car Rentals?
While renting a car through Turo is quite straightforward, there’s a legal aspect that one must consider. In many states, it’s unlawful to drive without car insurance or some proof of financial responsibility.
This naturally leads to the question: Can Geico, a well-known insurance company, cover Turo rentals?
Does Geico Cover Turo?
Unfortunately, Geico does not cover Turo. Geico’s policies are strictly against providing coverage for peer-to-peer car-sharing platforms like Turo. They only insure cars driven and maintained by the owner and not used for commercial reasons.
This isn’t an isolated case; many insurance companies have been distancing themselves from car-sharing platforms, excluding them from their auto insurance policies.
Contrastingly, traditional car rental companies continue to benefit from various insurance programs tailored to their needs.
Why does this difference exist?
It’s easy to lump car-sharing and car rental into one category, but they are distinct. Traditional car rental businesses operate with a fleet of vehicles, renting them out to customers. Turo, on the other hand, acts as a virtual marketplace, similar to Airbnb, where individual car owners can list their vehicles for rent.
The lack of support from insurance companies towards the car-sharing model isn’t well-explained. It’s a stance that has hindered many car-sharing companies, including Turo, from obtaining coverage from traditional insurers like Geico.
What about Geico for Turo Guests and Hosts?
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For Guest (Renters):
When you examine well-known car rental businesses like Enterprise, Alamo, and others, you’ll discover that Geico provides insurance for them. Geico themselves confirmed this in an article, although they concluded it with the phrase “it depends.” The situation is somewhat complex.
While some insurance companies might offer coverage for Turo, Geico is not one of them. They do not provide coverage for Turo Guests, no matter what kind of insurance policy you hold with them.
We reached out to Geico to clarify this matter, and a customer service representative confirmed that Geico’s auto insurance does not extend to cars rented through vehicle-sharing platforms.
So, if you’re planning to rent a car through Turo, you should know that Geico’s insurance won’t cover you, regardless of the policy you have with them.
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For Turo Hosts:
What about those who host vehicles on Turo?
For Turo hosts, personal insurance isn’t an option. Turo has its own built-in protection plan, and you can’t switch away from it unless you can provide evidence of commercial auto insurance.
Geico’s policies are even more restrictive in this context. They don’t allow their insurance to be transferred from an insured car to a renter. Geico’s coverage is specifically designed for the original drivers of the vehicle and traditional car rental companies that operate under legal business structures with professional staff.
So, if you’re a host on Turo, using Geico as your insurance provider isn’t a viable option. Attempting to do so could lead to complications, especially if there’s any damage to the car while it’s rented out.
What Insurance Options Are Available on Turo?
For Turo Hosts, there are two main options:
- Turo’s in-house protection plans
- Commercial Auto Insurance
Turo’s in-house insurance for hosts:
| Packages | Cost | Deductible |
|---|---|---|
| 90 Plan | 10% Of Trip Earnings | $2500 |
| 85 Plan | 15% Of Trip Earnings | $1625 |
| 80 Plan | 20% Of Trip Earnings | $750 |
| 75 Plan | 25% Of Trip Earnings | $250 |
| 60 Plan | 40% Of Trip Earnings | $0 |
If you decide to use Turo’s insurance for hosts, part of the money you make from renting out your car daily will be set aside for insurance. The exact amount depends on the specific insurance plan you choose.
Typically, the more comprehensive the insurance package, the more benefits you receive, but the less you earn per trip.
The plans are named by the percentage of daily earnings that the host takes home. For example, the 90 Plan means that the host keeps 90% of the daily earnings, with the remaining 10% going towards insurance.
Should anything go wrong, the Turo insurance plan offers up to $750,000 in third-party liability coverage. But remember, this is a backup plan. You’ll have to use your own personal auto insurance first before Turo’s protection kicks in.
For Turo Guests
| Minimum | Standard | Premium | |
|---|---|---|---|
| Cost | 18% of the trip price for trips costing more than $250, otherwise 25% with a minimum of $10. | 40% of the trip price, with a minimum of $12/day | 65 – 100% of the trip price with a minimum of $14/day. |
| Liability Coverage | The required minimum amount by the state | The required minimum amount by the state | Up to $750,000 |
| Deductible | $3,000 | $500 | $0 |
Turo offers different levels of insurance coverage to suit various needs:
- Minimum Level:
- Cost: It’s 18% of the trip price if the trip costs more than $250; otherwise, it’s 25%, but no less than $10.
- Liability Coverage: The bare minimum required by the state.
- Deductible: $3,000
- Standard Level:
- Cost: 40% of the trip price, and at least $12 per day.
- Liability Coverage: Again, the state-required minimum.
- Deductible: $500
- Premium Level:
- Cost: Anywhere from 65% to 100% of the trip price, but not less than $14 per day.
- Liability Coverage: Up to a substantial $750,000.
- Deductible: Nothing at all.
If none of these options seem right for you, you may prefer to explore third-party insurance providers. There are still several companies out there that accommodate Turo’s business structure.
State Farm, Progressive, and USAA are some examples. We’ve previously detailed these insurance options in other articles; you can follow the link to learn more about them.
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Final Words:
To sum up, Geico insurance doesn’t cover Turo. Hosts should consider commercial insurance or Turo’s protection plan, while guests can pay for Turo insurance or seek out other insurance providers that cover Turo.
This scenario reflects a broader trend in the industry, where traditional insurance companies like Geico and Progressive are hesitant to adapt to new peer-to-peer business models. Those interested in using Turo should be aware of these constraints and plan accordingly to ensure proper coverage.