Owning, registering and insuring a car is often very expensive. While some people can live without owning a car, others require it as a necessity. Moreover, the price is usually worthwhile when you think about the convenience that the average car provides. So, if you’re looking to offset some of the costs associated with owning a car, you might want to consider renting it out on Turo. Read this to see our review of Turo.
Who Is Turo?
Like Airbnb, Turo is an online marketplace where you can rent cars or earn passive income by renting out your car. This peer-to-peer platform was founded in the United States in 2009 under its former name (RelayRides) and their services are currently available in the United Kingdom, Germany and Canada.
Plus, Turo allows independent car rental companies and entrepreneurs to sign up as “Commercial Hosts” in over 50 other countries. They’re also the only peer-to-peer car rental platform in Canada at the moment, which means you can make a decent profit when you’re not using your vehicle.
How Does Turo Work For Owners?
You can list your vehicle for rent on Turo in four easy steps:
1. Register And List Your Car
Register for a free Turo account and create a rental post for your car, which takes about 10 minutes. Afterward, you can access your account via your computer or mobile device.
2. Customize Your Listing
Once you have full control over your account and rental listings, you can customize it. You can set your daily rental price and rules for drivers. Alternatively, Turo can adjust your price automatically to maximize your income.
3. Book Renters
From that point on, you’ll get notifications when potential guests request bookings. Guests are screened for suitability and it’s up to you to accept or deny them. Then, you simply arrange a meeting spot and hand over the keys.
4. Get Paid
Once a rental period ends, you’ll receive payment by PayPal in 1 – 5 days. Turo pays 65% – 90% of a trip’s price if you buy one of their insurance packages. They’ll reimburse you for other costs too (gas, extra mileage, etc.).
Turo Car Requirements
To get potential bookings on Turo, you’ll need to provide various details in your listing, such as the make, model and license plate number of your vehicle, along with your location and several clear photos to show viewers. Additionally, your vehicle must:
- Be less than 12 years old
- Be registered in one of the following provinces:
- Alberta
- British Columbia
- New Brunswick
- Newfoundland & Labrador
- Nova Scotia
- Ontario
- Prince Edward Island
- Quebec
- Not have dealer, temporary or trader plates
- Meet Turo’s insurance, maintenance and safety requirements
- Have a maximum fair market value of $105,000
- Have less than 200,000 KM on it
- Feature a clean title (not “salvage” or “branded”)
Can You Rent Out Specialty Cars On Turo?
You may also be able to list your car as a “classic” or “specialty” vehicle if it:
- Is at least 25 years old
- Has a fair market value of $105,000 or less
- Has safe and functional seatbelts
- Is in fantastic condition (physically and mechanically)
- Can be subject to further review, if necessary
Keep in mind that these are just the general requirements to post a vehicle on Turo in Canada. Go to Turo’s help center for more information about hosting or renting cars.
How Does Turo Car Insurance Work?
To become a host on Turo, you must buy their in-house vehicle insurance or have a commercial rental policy from an acceptable third-party provider. That’s because renting your car out on Turo means you’re using it commercially, which can void any personal insurance policy you have and leave you with a lack of coverage for unexpected events.
Insurance Plans Offered By Turo For Owners (Hosts)
Turo offers owners a standardized insurance plan across Canada through Economical Insurance Company and ICBC. Through it, owners would be protected from physical damage costs caused by collision or any qualifying event. It would also be covered for events such as theft.
- Get up to $2,000,000 in third-party liability insurance
- Get up to $105,000 in physical damage (up to your car’s actual cash value)
- $0 deductible
- Get up to $500 for your replacement vehicle
The cost of this plan is 30% of the trip price, meaning your get to keep 70% of the profits.
Insurance Plans Offered By Turo For Renters (Drivers)
Turo offers protection plans for guests in every participating province. Guest insurance prices vary according to the level of coverage you want.
Turo displays the amount of third-party liability insurance and the out-of-pocket physical damage limit for each plan. The physical damage coverage included in your plan will limit the amount you have to pay for damaging a host’s vehicle but doesn’t remove the costs associated with any mechanical or interior damage you’re responsible for.
When renting a car on Turo Canada, in-house coverage is secondary to any personal insurance you already have. Otherwise, Turo offers 4 protection options for guests:
| Cost | Third-party liability coverage | Physical Damage Deductible | |
| Minimum Plan | 18%-25% of trip’s price (minimum charge of $7.50 per day) | $2 Million | $2,000 |
| Standard Plan | 40% of trip’s price | $2 Million | $500 |
| Premier Plan | 80% of your trip’s price (minimum charge of $15 per day) | $2 Million | $0 |
| No Plan | $0 | $2 Million | No Coverage |
Minimum Plan
- Up to $2 million in third-party liability coverage
- Limits responsibility to $2,000 of physical damage to the host’s vehicle
- Cost depends on your trip’s price:
- Less than $250 = 25% (minimum charge of $7.50 per day)
- More than $250 = 18% (minimum charge of $7.50 per day)
Standard Plan
- Up to $2 million in third-party liability coverage
- Limits responsibility to $500 of physical damage to the host’s vehicle
- Cost = 40% of your trip’s price (minimum charge of $12 per day)
Premier Plan
- Up to $2 million in third-party liability coverage
- Limits responsibility to $0 of physical damage to the host’s vehicle
- Cost = 80% of your trip’s price (minimum charge of $15 per day)
- Only available for trips of 2 or more days, on cars valued at under $25,000 total
No Protection
As they do with their host insurance plans, Turo allows you to rent a car without any in-house guest protection. While you still get up to $2 million in third-party liability coverage, you and/or your personal insurer are responsible for all costs related to physical, mechanical or interior damage and administrative claims or appraisal fees.
What Happens If Your Car Is Damaged?
If your car is damaged during a trip, the renter should report the damage by contacting Turo. However, if they don’t and you notice damage at the end of the trip, you can report it to Turo.
To make an insurance claim following an incident, notify Turo within 24-hours of the end of the trip. Make sure to provide clear photos of your vehicle’s condition before and after the damage occurs. After that, within 1 – 3 days, you should be contacted by a Turo agent, who will assist you with the claims process and help reimburse you for any eligible damage.
Pros And Cons Of Turo
Turo is a recognized company but there could be things about their platform or rental process that you don’t like, so remember to weigh the pros and cons before signing up:
Pros Of Turo
- Customer Service – They offer excellent customer service and 24/7 roadside assistance.
- Earn Passive Income – It can be a flexible way to earn passive income on your unused car.
- Fast Payments – Payments are made via PayPal, which is fast and convenient.
- Customizable – You’re allowed to set your own schedule and prices.
- Ability To Incentivize – You can gain more traction by offering extras (unlimited mileage, prepaid refuels, etc).
- Insurance Plans – Turo offers a standardized plan that has comprehensive liability insurance and physical damage protection. Similarly, they also offer renters a tier of insurance plans.
- Safe – All renters are verified and you can choose to accept or decline bookings.
Cons Of Turo
- Treatment Of Your Car – It can sometimes be uncomfortable and stressful to let strangers drive your vehicle. Guests aren’t always respectful and can damage or lower the value of your car.
- May Be Hard To Rent -Listings may not receive traffic if your vehicle is in a remote or less popular area.
- You May Not Qualify – Your car is ineligible if it’s more than 12 years old or doesn’t have a clean title.
Turo FAQs
Is Turo legitimate?
Is Turo worth the effort and cost?
Do I need personal car insurance if I’m renting my car on Turo?
Thinking About Listing or Renting a Vehicle On Turo?
Then don’t forget to learn everything you can about their platform beforehand. Although Turo offers a flexible way to make passive income, there are risks involved with their rental process (for hosts and guests), so their marketplace may not be exactly right for you. Visit Turo.com or contact their customer service department for more information.
