Everything You Need to Know About Turo Rental Cars

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Ever since the spike in price and demand for rental cars in 2021, renters have been looking for viable alternatives.

Turo is one alternative option that could offer cost-savings potential when renting a car—as well as a range of other benefits. This peer-to-peer car sharing service offers convenience, flexibility, the exact car of your choosing and benefits for young drivers.

We’re taking a deep dive into Turo, for both renters and hosts, answering the following questions along the way:

• How does Turo work?
• How does insurance work with Turo?
• How does Turo pickup work?
• How does Turo payment work?

How Does Turo Work?

Turo is the world’s largest rental car sharing platform that allows anyone to list their car for rent. It’s often described as the Airbnb of car rental, allowing you to skip the rental counter in exchange for a peer-to-peer service.

How to Rent a Car On Turo

Turo’s website makes renting a car easy. You can put in the location where you want to rent a car, as well as the dates and pick-up and drop-off times.

You’ll then be provided with a list of available rental cars and their location on the map in relation to the location you inputted.

Turo’s search functionality is highly specific, offering you several filters ranging from price to distance from your location.

You can also select the exact make, model and age of your car, as well as special features including:

• All-wheel drive
• Android compatibility
• Apple CarPlay
• AUX input
• Backup camera
• Bike rack
• Blind spot warning
• Bluetooth
• Child seats
• Convertible
• GPS
• Heated seats
• Keyless entry
• Pet-friendly hosts
• Ski racks
• Snow tires/chains
• Sun roof
• Toll pass-friendly
• USD charger/USB input
• Wheelchair accessibility

You can also specify whether you want an electric or hybrid car, what transmission you prefer and the mileage limit you are comfortable with.

After setting the filters to your preferences, you can scroll through the results and find the car that suits you best.

Once you select a car, you’ll be redirected to its page where you can find all of its details. You’ll also find Turo user reviews of the car, information about the host, as well as the total number of trips the car has been rented for.

Just like with an Airbnb rental, the Turo host and user review information helps you to get a better idea of what to expect. Turo hosts also have ratings such as “All-Star Host” to further indicate their quality, experience and reputation on the platform.

On the car’s main page, you’ll be able to find optional extras which you can add to your car at the checkout for an additional price. This could include trip-specific extras such as child safety seats or a bike rack, as in the screenshot below.

Some Turo hosts will also allow you to add on unlimited mileage for an extra fee per day as well as prepay the cost of refueling, eliminating the hassle of refueling before returning.

If you don’t opt for unlimited mileage, be sure to check the number of miles included in the standard price as well as the cost of additional miles. For example, a Turo rental car might include 600 miles in the base price with a fee of $0.25 per mile for any additional miles driven.

Depending on your host, you may also have the car delivered to you for an extra fee, which varies depending on your desired pick-up location. The same applies for drop-off locations.

Once you’re happy with the car and optional extras, you can head to the checkout to confirm your booking. Some car rentals on Turo require approval from the host while others offer instant approval upon booking.

Keep in mind that there are age requirements for booking a car with Turo. The following restrictions apply:

• You must be a minimum of 18 years old to book a rental car.
• You must be 21 or older to book a vehicle with a total market value of more than $20,000.
• You must be 25 or older to book a Deluxe Class vehicle.
• You must be 30 or older to book a Super Deluxe Class vehicle or a specialty vehicle.

To make a booking, you’ll need to create an account with Turo or continue by using your Facebook, Google or Apple account.

Be sure to check the cancellation policy of your host. Most hosts allow free cancellation up to 24 hours before your rental period begins.

Because Turo is a peer-to-peer car sharing service, Turo hosts have some flexibility in setting their own policies. However, Turo itself sets clear policies on smoking and cleanliness.

Turo doesn’t require you to clean your rental car before returning it to the host, but a certain level of cleanliness is required. Specifically, “if you return the car in a condition that only could have been caused by irresponsible or abusive behavior” hosts have the right to report you and charge you a $150 cleaning violation fee plus a 3% processing fee. The following instances could trigger a cleaning violation fee:

• Biowaste or bodily fluids
• Spills or waste that requires cleaning inside of vents or between the door panel and window
• Major stains or residue that covers a large area of the vehicle’s interior and would require steam cleaning or a full detail
• An extreme amount of caked-on mud, dirt, sand, or insects requires professional-level exterior detailing
• Significant amounts of pet hair

Likewise, Turo operates a strict no-smoking policy in all cars and requires hosts to provide smoke-free cars. If you smoke in a Turo rental car and are proven to have done so, you’ll be charged a $150 smoking violation fee plus a 3% processing fee.

How to Hire Out Your Car On Turo

Becoming a host on Turo is straightforward. The platform is free of monthly and setup fees, making it a low barrier to entry business option. As long as you have a car that meets the requirements, you’re good to go.

According to Turo, the average annual income among all U.S.-based vehicles (where there were at least three distinct vehicles within each market area) between Jan. 1, 2020, and June 31, 2023, were as follows:

• $10,868 for one car
• $32,605 for three cars
• $54,341 for five cars
• $76,078 for seven cars
• $97,814 for nine cars

Given these numbers, it’s no small wonder that business-savvy folks have started renting out their cars on Turo.

If you play your cards right, Turo could become a lucrative side business, helping you cover the cost of your cars, their insurance premiums and perhaps even earn you a profit on top.

Your Turo rental car needs to be equipped with permanent or temporary license plates—dealer or trader plates aren’t allowed.

The following vehicles are ineligible for listing on Turo:

• Box trucks
• Limousines
• Off-road vehicles
• Motorcycles
• RVs
• Three-wheeled vehicles
• Vehicles that seat more than 10 people (nine passengers plus the driver)
• Vehicles that require a commercial license

Additionally, your vehicle can’t be older than 12 years and can’t have a mileage greater than 130,000. If your vehicle’s mileage exceeds 130,000 miles after having been listed and rented on Turo, you can continue to list it provided that it’s in excellent condition.

Similarly, as Turo provides coverage equal to the actual cash value of your vehicle up to $200,000, your vehicle can’t have a fair market value greater than this amount.

You’ll also need to ensure that your vehicle meets the minimum maintenance checks and cleaning requirements, to avoid any issues with guests.

Vehicles may be determined Deluxe Class or Super Deluxe Class if they meet the following requirements:

• Deluxe Class. Fair market value between $45,000 and $80,000.
• Super Deluxe Class. Fair market value greater than $85,000.

Once you’ve verified the eligibility of your vehicle, you can go ahead and create a listing. Turo has a useful help center to walk you through every step of the setup process.

When listing your car, you’ll need to consider pricing, optional features, delivery and pick-up fees and discounts. You can use Turo’s Automatic Pricing feature to automate price setting based on your vehicle type, location, trip history and changes in supply and demand. Turo’s Pricing Insights feature also comes in handy by helping you gauge the pricing of your competition.

You can also determine the delivery fees you wish to charge, up to a maximum of $120. Keep in mind that Turo will take 10% of your delivery fee earnings.

Before finalizing your listing, you can set your availability. You can do this either by specifying certain hours for pick-up and drop-off or by blocking out certain times and dates in the calendar.

When you receive a booking, you’ll need to check your guest in up to 24 hours before the rental period begins. This consists of:

• Confirming the guest’s driving license
• Documenting the vehicle’s condition
• Giving the guest access to the vehicle and key

The check-in process is crucial as failure to verify the guest’s driving license could void your insurance protection plan in the event of an accident.

You can also manage trips and guest check-in remotely using Turo Go. To do this, you’ll need an active OEM Connected Car subscription, as well as have hosted at least three trips or more, with a response rate of at least 85%, a commitment rate of at least 80%, a five-star trip rating of at least 80% and an acceptance rate of at least 60%.

As you continue to receive regular requests for rentals, your status as a host can increase.

As an incentive for good practices, Turo runs the All-Star host program to reward and give greater visibility to popular hosts. To be recognized as an All-Star host, you need to:

• Have a response rate greater than or equal to 95%
• Have an acceptance rate greater than or equal to 90%
• Have a commitment rate greater than or equal to 95%
• Have at least 90% or more five-star ratings
• Have your account open and free of active policy violations
• Have 10 or more completed trips across all listings, including deleted listings

As an All-Star Host, you’ll receive priority customer support, increased visibility and a $100 promo code to be used for travel on Turo (valid for 180 days). Host status is assessed every quarter.

Similarly, if you meet the requirements for All-Star host status and have at least four active vehicles on Turo during the past 365 days with at least one completed trip on each, as well as have earned $36,000 or more during the past 365 days, you’ll be eligible for Power Host status. This gives you additional perks including business insights and a dedicated “success manager.”

How Is Turo Different From Traditional Rental Cars

Turo rental cars are different from traditional rental cars. With traditional rental car companies, you pick the category of car that you want, you show up and they hand you the keys. You can’t be certain about the type of car you’ll receive, since it will depend on inventory at the time.

With Turo rental cars, you’ll be able to select the specific rental car that you want.

If you want a more affordable car with great gas mileage, you can find plenty of Hondas on Turo. If you want more specialty cars like a Tesla or Porsche, you can find those options as well. The ability to select a specific car enables you to know exactly what you’ll be getting. If specific features such as ample legroom, a bike rack or child seating are a priority, you can be certain you’ll get them

Additionally, with Turo rental cars, you often won’t see an extra charge for certain benefits. If the car already has built-in navigation, you won’t need to pay extra to access it.

When you book a car with Turo rental cars, you might have to take a rideshare or a taxi to get to the pickup location. However, many Turo hosts will offer to drop the car off at the airport for an additional fee. Moreover, hosts can often deliver the car to multiple different locations to make it more convenient for you, for an extra fee.

Another major difference is the year of cars available. Most rental car companies try to keep their fleet relatively young. This means you usually can expect your car to be no older than two to three years old.

On the flip side, Turo allows its hosts to provide cars up to 12 years old. You may be getting a slightly older car, but they’re often cheaper because of the age and mileage, while still meeting maintenance and safety requirements.

In terms of pricing, it can’t be said that Turo is necessarily cheaper than traditional rental car companies. While the base trip price is often cheaper than a standard rental car, additional costs such as Turo trip fees, delivery fees and optional extras can increase the cost. Moreover, you’ll typically need to take out a Turo insurance plan to insure your rental. This can kick up the price compared to using credit card rental car insurance to cover your traditional rental car.

Here’s a summary of the main differences between Turo vs. traditional rental car companies:

How Much Does Turo Cost

The cost of a Turo rental car depends on a number of factors including the duration, car type, location, age of the driver and optional extras included.

Here are some of the main fees to expect:

• Trip price. This is the daily rate set by the host, multiplied by the number of days you’ve selected. Hosts may charge different rates depending on the which days you’re renting, as well as offer discounts for certain rental durations.
• Trip fee. 100% of the trip fee goes to Turo and is a charge that helps them continue running the platform. The trip fee can be anywhere between 2.5% and 100% of the trip price, with a minimum fee of $15. It’s calculated using more than 50 variables.
• Protection plan fee. Turo rentals aren’t typically covered by insurance policies, so it’s necessary to take out a Turo-specific insurance protection plan. The cost varies depending on the plan you choose (more on this later).
• Young driver fee. Drivers aged between 18 and 20 will be charged $50 per day extra while those aged between 21 and 24 will be charged $30 per day extra. For drivers aged between 18 and 21, it’s mandatory to pay for a protection plan.
• “Airport fee,” “License recovery fee” or “Operator fee.” This fee is collected by Turo and remitted to the airport, allowing your host to deliver and park your rental vehicle on the airport’s premises.
• Optional extras. Depending what you choose, there may be optional extras to pay for such as ski racks, child seating, prepaid refueling or unlimited mileage.
• Pick-up/return fee. The amount charged by the host to deliver and pick-up the vehicle.
• Security deposit. According to Turo, you may be required to make a security deposit.
  “We charge a security deposit to guests under age 30 who book a Deluxe Class car, to all guests who book a Super Deluxe car, and to guests who plan to travel from the UK to the EU. We also charge a deposit to some US and UK guests based on their auto-insurance score, trip details, and other factors.”
• Taxes. In some U.S. states, it’s legally required for Turo to collect taxes on trips.

While there are quite a few potential fees to watch out for, how much you’ll end up paying depends highly on your individual circumstances. In some cases, you might save a significant amount by booking with Turo compared to booking with a standard rental car company; in other cases, the reverse might apply.

Payment Process On Turo

For trips booked more than five days in advance, without any security deposit requirements, you’ll have the option to Pay Now or Pay Later.

If you opt for the Pay Now option, Turo will authorize the cost of the trip when you book and charge your payment method 40 hours after the authorization or one hour before your trip begins, whichever comes first.

If you opt for the Pay Later option, Turo will charge the full amount three days before the beginning of the trip for trips booked five to 13 days in advance. For trips booked more than 14 days in advance, Turo charges the full amount seven days before the trip starts.

You can use debit cards, credit cards, Revolut prepaid cards, Apple Pay and Google Pay to cover the cost of your Turo rental. All cards must be issued in the name of the primary guest.

When it comes to getting paid as a host, the trip number, type and your bank’s processing time influence when you’ll receive your funds. For your first trip, Turo initiates payment three business days after it ends. For all other subsequent trips, Turo initiates payment three hours after the end of the trip. If a trip lasts more than one week, Turo will make weekly partial payments, every seven days.

Turo issues payments through Stripe, which means you’ll need to set up an account and get verified with Stripe.

It’s important to understand that Turo takes a cut of your earnings as a commission for allowing you to use its platform. The exact percentage Turo takes depends on the insurance protection plan you choose to cover your Turo rental cars. The lower the cut Turo takes, the higher the deductible will be when you make a claim.

As a brief overview, Turo offers the following five protection plans for U.S.-based hosts:

• 60 Plan. You’ll receive 60% of your total earnings and be liable to pay a deductible of $0 in the event of a claim.
• 75 Plan. You’ll receive 75% of your total earnings and be liable to pay a deductible of $250 in the event of a claim.
• 80 Plan. You’ll receive 80% of your total earnings and be liable to pay a deductible of $750 in the event of a claim.
• 85 Plan. You’ll receive 85% of your total earnings and be liable to pay a deductible of $1,625 in the event of a claim.
• 90 Plan. You’ll receive 90% of your total earnings and be liable to pay a deductible of $2,500 in the event of a claim.

You can find a full explanation of the terms and conditions of each insurance plan on Turo’s website.

Insurance Options Available Through Turo

If you’re wondering if your regular car insurance will cover Turo, this is a question best asked to your insurance company. However, in general, you shouldn’t expect your regular car insurance to cover you beyond basic liability when renting with Turo.

Likewise, using credit card insurance on Turo is risky. Turo advises its renters to not rely on rental car insurance from credit cards to cover Turo cars.

American Express explicitly states that peer-to-peer sharing of cars is not covered under their rental car protections.

Chase requires the car be rented from a commercial rental car company that is licensed under the laws of the jurisdiction you’re renting in. Since Turo is just a platform for people to list their cars, they may not be licensed in the state you’re renting in. Plus, Turo doesn’t consider itself a commercial rental car company, so don’t expect rental car insurance from Chase to cover your Turo car rental.

The only issuer that may apply is Barclays, as there are reports that they have covered Turo rental cars. However, it isn’t explicitly stated in any benefits guides so you’ll be taking a risk by relying on a Barclays card.

At the end of the day, your best bet is to take out an insurance plan offered through Turo.

Turo offers the following insurance plans for guests:

Turo: Pros and Cons

Turo certainly stands out from a traditional rental car company, but that’s not to say that it will always be the better choice.

Let’s run through the pros and cons of using Turo.

Pros of Turo

You Know What You’re Getting

Traditional rental car companies will only guarantee you a certain class of car. With Turo, you’ll be guaranteed an exact model of car.

That means you know exactly what you’re getting and paying for upfront, without any nasty surprises.

This enables you to use Turo to tailor to your preferences.

Convenience

Car rental companies tend to have hubs at airports as well as other popular travel and touristic locations. However, sometimes you may need a more local car rental option.

Because Turo is a peer-to-peer car sharing platform, it’s much more likely that you’ll find hosts in your area, even if it’s far away from an airport.

That can make car rental far easier and save you a long trip in the process. So instead of having to figure out how to avoid getting scammed by Uber, you can avoid the hassle altogether and rent with Turo.

Potential Cost-Savings

The base fee charged by hosts on Turo tends to be much lower than those charged by traditional rental car companies.

Depending on the insurance and trip fee assessed by Turo, as well as the optional extras you add-on, you might enjoy significant cost-savings when booking a rental car with Turo.

Young Driver Friendly

In most states in the U.S. you need to be at least 21 years old to rent a car.

That’s where Turo offers young drivers a significant advantage, lowering the age requirement to just 18 years old.

Flexible Pick-Up and Drop-Off Locations

Most Turo hosts offer a range of pick-up and drop-off options in order to make your experience as smooth as possible. You can easily arrange airport pick-up or have the car delivered to a different location more accessible to you.

Hosts tend to provide a range of delivery options and supplement them with clear instructions to find and drop-off the car.

Cons of Turo

Availability of Cars

While Turo comes with the advantage of being able to select the exact car you want, that works only when the car you want is available.

Given that Turo is a peer-to-peer car sharing service, you may find that the exact car you are looking for is not available in your area.

However, this isn’t much of a big deal when put into perspective. While a traditional rental car company can guarantee you a certain class of car, they won’t guarantee the model. At least with Turo you’ll always be able to choose what model you want before booking, even if you were hoping for a different type of car.

High Insurance Costs

Typical auto insurance plans won’t cover rental cars from Turo. Likewise, most credit cards that offer car rental insurance exclude Turo cars from coverage.

For this reason, you’ll always be stuck having to pay for a separate insurance policy from Turo to cover the duration of your rental period. This could end up making the cost of a Turo rental car equal to or more than that of a traditional rental car company, as you can insure the latter using credit card rental car insurance.

Therefore, figuring out how to get the best rate on rental cars means you need to compare the cost of rental with Turo with a traditional rental car company.

Likewise, if you have a credit card that offers complimentary status with popular rental car companies, you could enjoy free upgrades and other perks compared to using Turo.

Unpredictable Trip Fees

Many users have complained about the unpredictability of Turo trip fees.

The trip fee is levied by Turo with the host having zero involvement.

Turo trip fees can be anywhere between 2.5% and 100% of the total price of the rental, with a minimum charge of $15 per trip. It calculates the fee based on more than 50 variables, making it difficult to predict.

Some users report fees as high as 100% while others report them as low as 2.5%, with no clear indication as to what causes the fee variability.

Inconsistency

Just like Airbnb, the quality of your rental car experience with Turo can vary widely between hosts.

You can mitigate this risk by searching for All-Star and Power Hosts.

Nevertheless, the same standard of quality control doesn’t exist with Turo compared to traditional rental car companies.

However, if you do your research and read user reviews, you should be able to avoid bad experiences.

Maximizing Your Turo Experience

Let’s take a look at some tips for both renters and hosts hoping to maximize their success with Turo.

Tips for Renters

When renting a car with Turo, you’ll want to do your homework when it comes to the host.

Ensure you read user reviews, check the status of the host and how many trips they’ve already completed. This will mitigate the risk of a bad experience.

Make sure you communicate clearly with the host so you know exactly where to find the car and what additional costs you can expect to pay for.

As with any rental car, inspecting and photographing the car before use is key to protecting your rights in the event of a dispute. Similarly, if you determine that the rental car doesn’t meet reasonable standards of cleanliness, your best bet is to not use the car and immediately contact Turo’s customer support team.

Although you won’t get insurance coverage, Turo typically codes as travel with most card issuers. Because it codes as travel, you’ll want to use a card that earns you the most points on general travel when paying for the cost of your rental car, such as the Chase Sapphire Reserve® or the American Express® Green Card.

You should also keep an eye out for Amex Offers, as Amex occasionally has an Amex Offer for savings on Turo car rentals. This can help shave some money off your rental cost.

Tips for Car Owners

If you have the ability to rent out your own car without buying a new one, this is an easy way to test the waters.

Make sure you create an attractive listing with a competitive price. You can use Turo’s Automatic Pricing and Price Insights tools to help you achieve this.

Clear communication is crucial for smoothly managing the booking process and setting the expectations of your guest from the outset. This prevents problems down the line, which leads to more positive user reviews and the chance to increase your status as a host.

Ready to Explore with Turo?

Turo is a great alternative to traditional rental car companies. The ability to select your car directly and for underage drivers to be eligible to rent cars are some of the many advantages that Turo has over other rental car companies.

Keep in mind that your credit card rental car insurance likely won’t apply to Turo rentals, so if you want protection you’ll need to purchase one of Turo’s protection plans. This cost should be taken into account when comparing the cost of Turo to traditional rental car companies.

Whether you’re looking for an economy car or an all out exotic experience, Turo is a great option to consider before your next rental car.