How Turo’s Guest Insurance Really Works | What Hosts Need to Know About Claims

When it comes to renting out your vehicle on Turo, insurance misunderstandings are one of the biggest traps that hosts fall into.

Many new hosts (and even some guests) believe that Turo’s protection plans fully protect everyone involved. But that’s not exactly true—and if you don’t understand how it really works, you could end up leaving money on the table.

This guide breaks down how insurance works on Turo, what’s covered, and how hosts should handle damage step-by-step to maximize payouts and avoid unnecessary losses.

You’re Covered as a Host — But You Might Be Leaving Money Behind

If you’ve selected a Turo protection plan for your vehicle, you’re covered on every booked trip. That means if a guest damages your car, you can always escalate the claim to Turo, and they’ll handle the process for you.

When you file a claim through Turo, you’re also agreeing to pay your deductible —usually anywhere from $250 to $2,500, depending on your plan.

That’s the cost for Turo to take over the claim. They’ll manage the process, pursue the guest or their insurance, and get your vehicle repaired. It’s convenient—but it’s not always the most profitable route.

The Guest’s Insurance Pays First

Many guests on Turo have personal auto insurance that includes rental coverage. What most hosts don’t realize is that Turo’s guest protection plan is secondary to any personal insurance the guest already has.

That means:

• If the guest’s personal insurance covers rentals, that policy is responsible first

• Turo’s protection plan for the guest only kicks in if:

  • The guest doesn’t have rental coverage, or

  • Their insurer denies the claim

Most guests don’t know this. And many hosts don’t think to ask.

But if you do, you might be able to handle the claim directly through the guest’s insurance—without paying your deductible, and with the chance to recover more (like diminished value or loss of use) that Turo doesn’t cover.

How to Handle Damage the Right Way

You have 24 hours to initiate a damage claim in the Turo App. You can choose to settle directly with the guest or escalate to Turo. If you opt to settle with the guest you have 20 days to come to a resolution or escalate to Turo.

Here’s how to handle damage when it happens—and when to move on to the next step:

Offer Direct Pay for Minor Damage

If the damage is minor and the guest doesn’t want to file an insurance claim, offer the option to pay you directly. You can message them something along the lines of:

“Hi [Name], I noticed damage to the vehicle after your trip. Do you happen to have personal insurance that covers rental cars? If so, I’d like to handle the damage through your insurance, unless you'd like to pay for the damages directly. Protection Plans on Turo are always secondary to any primary policy the guest has in place so if we can work this out together it can save time and Turo's processing fees for handling the claim.”

This works best for:

• Scratches

• Scuffed wheels

• Broken trim or lights

• Cracked glass

Keep it clean and professional:

• Get the agreement in the Turo app messages

• Provide a repair estimate

• Collect payment before marking anything resolved. I do not recommend accepting payment plans from guests. They need to pay the balance in full before the 20 day grace period is up or you need to escalate to Turo.

🔒 Important: If you file through Turo, you cannot ask the guest to pay your deductible later. That’s against policy and can get your claim reversed.

Ask the Guest About Their Insurance

If the guest does not have the funds to pay you in full or wishes to have insurance handle it directly, you can request their insurance provider and policy number. The guest, you, or your repair shop can initiate a claim.

Why this matters:

• You avoid your deductible on Turo

• You may be able to recover diminished value and additional expenses, which Turo doesn't cover

Escalate to Turo If Needed

If the guest doesn’t have insurance, refuses to cooperate, or ignores you—escalate the claim through Turo.

You’ll need:

• Pre- and post-trip photos

• Claim submission within 24 hours of trip end

• To pay your deductible based on your protection plan

Turo will:

• Handle the full claim process

• Attempt recovery from the guest’s insurance (if applicable)

• Pay out the approved amount (minus your deductible)

This should always be considered your backup option, and it works. But just know—you’re paying for convenience, not necessarily the best payout.

Most hosts don’t realize they can work with the guest or the guest’s insurance first—and because of that, they escalate every issue and lose money on deductibles and limited reimbursements.

Here’s the smart way to handle it:

1. Ask about the guest’s insurance

2. Offer direct payment for smaller issues

3. Escalate to Turo only when needed

Turo protection is great to have. But knowing when to use it—and when to resolve it yourself—will protect your profit margins and make you a smarter, more successful host.

Join the conversation in our Facebook group.