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Insurance10 min read

Turo Insurance Explained: Which Protection Plan Actually Saves Money?

Understanding Turo's Three Protection Tiers

Every Turo trip comes with one of three host protection plans. The plan you choose directly affects how much Turo takes from each trip — and this is the single biggest variable cost in your hosting business.

PlanHost FeeLiabilityPhysical DamageBest For
Premier15%$1MActual cash valueLuxury/high-value vehicles
Standard25%$750KActual cash valueMost hosts (default)
Basic35%State minimum$0 (none)Hosts with commercial insurance

The Real Math: Premier vs. Standard vs. Basic

Let's run the numbers on a car that grosses $2,000/month on Turo:

  • Premier (15%): You keep $1,700 — Turo takes $300
  • Standard (25%): You keep $1,500 — Turo takes $500
  • Basic (35%): You keep $1,300 — Turo takes $700

The difference between Premier and Basic is $400/month per vehicle. For a 5-car fleet, that's $2,000/month or $24,000/year — just in Turo fee differences.

When Commercial Insurance Makes Sense

Here's where it gets interesting. Some hosts choose the Basic plan (35% fee) and carry their own commercial fleet insurance. Sounds backwards — why choose the highest fee?

Because Basic plan hosts with commercial coverage get Turo's lowest fee while maintaining full protection through their own policy. If commercial insurance costs you $200/month per vehicle, here's the comparison:

Standard (25%): $500 Turo fee + $0 external insurance = $500/month

Basic (35%) + Commercial: $700 Turo fee + $200 insurance = $900/month

Wait — that's MORE expensive? Yes, for single cars. The math flips at 3+ vehicles because commercial fleet policies have volume discounts, and you get better coverage than Turo provides.

The Break-Even Point

For most markets, commercial insurance becomes cheaper than Turo's built-in coverage at 3-5 vehicles. At that point, you're paying less per vehicle and getting superior coverage with lower deductibles.

Recommended Insurance Providers for Turo Hosts

  • Buckle — Designed specifically for ride-share and car-sharing hosts
  • Safely — Commercial coverage for Turo/Getaround fleets
  • State Farm Commercial — Available in most states, fleet discounts at 5+ vehicles
  • Progressive Commercial Auto — Competitive rates, good for mixed fleets

What About Personal Insurance?

Do not rely on personal auto insurance for Turo. Most personal policies explicitly exclude commercial use. If you have a claim during a Turo trip and your personal insurer finds out, they can deny the claim AND cancel your policy.

See How Insurance Affects Your Bottom Line

Our profit calculator lets you compare all three Turo protection tiers side-by-side with your actual costs.

Open Calculator

Scaling Beyond Turo's Insurance

Once you have 5+ vehicles and commercial insurance, you're essentially running an independent rental operation on Turo's platform — paying 35% for the marketplace. At that point, taking direct bookings through a platform like Launch The Fleet lets you keep 100% of revenue while using your existing commercial coverage.