Does AAA Insurance Cover Turo Rentals?

Turo is an increasingly popular peer-to-peer car rental platform that allows car owners to rent out their personal vehicles. With Turo, owners can earn extra income by making their cars available for others to rent when they aren’t using them.

But what about insurance? Does AAA auto insurance cover Turo rentals? Here’s what AAA members need to know about using Turo and how AAA insurance may or may not protect them.

How Turo Works

Turo is essentially an Airbnb for cars. Car owners list their vehicles on the Turo platform along with rental rates and availability. Renters browse available listings, book the cars they want to rent, and pay Turo.

Turo handles the payments and takes a cut as a fee. The rest of the rental income goes to the car owner. Renters pick up the car at the beginning of the rental period and return it when done.

Turo provides some liability insurance coverage, but there are limitations and exclusions. Renters can also purchase additional protection through Turo.

Turo’s Insurance Offerings

Turo provides liability insurance on all booked rentals with a $1 million policy limit. This covers bodily injury and property damage to third parties if there is an accident during a Turo rental.

However, Turo’s insurance has a $3,000 deductible. If renters cause an accident, they would be responsible for up to the first $3,000 in damages.

For physical damage coverage on the rented vehicle itself, Turo offers additional “protection” plans:

• Basic – Covers up to $30,000 for the rented vehicle with a deductible of $500.

• Standard – Up to $75,000 coverage with a $250 deductible.

• Premium – Up to $150,000 in coverage with a $500 deductible.

Renters can pay extra per day to add one of these protection plans to their rental. This covers damage to the owner’s car, unlike the liability-only coverage Turo provides automatically.

Does AAA Cover Turo Rentals?

Whether AAA insurance covers a Turo rental depends on the type of coverage the member has on their personal policy.

AAA auto policies include standard coverages like liability, collision, comprehensive, uninsured motorist, and medical payments. Policies differ, but here’s how AAA insurance would generally apply to Turo rentals:

Liability Coverage

• AAA’s liability insurance likely** does not extend** to Turo rentals. It covers policyholders when they drive their own insured vehicles.

• Turo provides $1M liability insurance on all rentals. This is primary if there’s an accident during a rental.

Collision and Comprehensive Coverage

• AAA collision and comprehensive insurance only cover policyholders’ owned vehicles, not cars rented through Turo.

• To have coverage for damage to the rented Turo car, renters must purchase one of Turo’s protection plans.

Uninsured/Underinsured Motorist

• This coverage would apply if a Turo renter was hit by an uninsured or underinsured driver.

• Turo’s liability policy wouldn’t apply, so the AAA policy would handle medical bills/injuries up to its limits.

Medical Payments

• Same as uninsured motorist above. AAA medical coverage is primary for renters’ injuries in an accident caused by an uninsured driver.

AAA liability insurance also does not extend to Turo rentals, but Turo does include their own liability coverage on all booked rentals.

Potential Gaps to Watch Out For

While Turo offers liability and physical damage coverage options, there are some potential gaps AAA members should be aware of:

• Deductibles – Turo’s deductibles are much higher than a typical AAA policy. Renters are responsible for up to the first $3,000 in liability claims.

• Exclusions – Damage from regular wear and tear may not be covered. Mechanical breakdowns and pre-existing conditions are also often excluded.

• Limited coverage – Even with Turo’s premium protection plan, coverage maxes out at $150,000. Many AAA policies have higher limits.

• No personal injury protection – Turo does not include PIP coverage that would pay medical bills for renters/passengers injured in an accident. AAA covers this, but only if the renter has the coverage on their own policy.

The bottom line is Turo renters are not as well protected as they would be driving their own insured vehicles. AAA members should be cautious about relying solely on Turo’s insurance offerings for protection.

Insuring Your Car on Turo

For AAA members listing their vehicles on Turo, their personal auto policies also likely do not extend coverage to Turo rentals.

When renting out a car, AAA insurance only covers the owner for their own personal use of the vehicle. Some key points:

• Liability insurance will not apply to third-party claims if there’s an accident while someone is renting the car.

• Collision/comprehensive coverage will not cover damage to the owner’s car while someone else rents it.

• Car owners need a commercial rental car policy to get true coverage for Turo rentals. Most personal auto policies explicitly exclude commercial rental use.

AAA members using Turo should speak with an agent to discuss risks and options for insuring their car while renting it out. Proper commercial insurance is recommended to avoid major coverage gaps.

Options for Supplemental Coverage

For AAA members renting or listing cars through Turo, additional specialty insurance products exist to help fill coverage gaps:

• Short-term rental insurance – Ad-on liability policies to cover Turo car owners during third-party claims. Usually lasts 1-3 months.

• Rental reimbursement insurance – For renters to be reimbursed for expenses if they damage the Turo car, since AAA collision doesn’t apply.

• Rideshare coverage – Add-on policies that can be added to a AAA personal auto policy to cover ridesharing and car rentals through Turo.

These supplemental insurance options can help strengthen protection for both Turo owners and renters. AAA members using Turo should discuss add-on products with their agents.

The Takeaway on AAA Insurance and Turo

AAA auto insurance policies generally do not extend primary coverage to Turo car rentals and sharing.

• For renters, Turo’s liability insurance is primary. Collision, comprehensive, and PIP gaps can be filled with Turo’s protection plans or specialty rental products.

• For owners listing cars on Turo, commercial rental insurance is recommended since personal auto policies exclude commercial use.

AAA members should carefully review Turo’s insurance coverage options and exclusions. Supplemental specialty insurance can help fill gaps for owners and renters. Consulting with AAA agents is also key for guidance on managing Turo-related risks.

With proper understanding of insurance limitations and the right supplemental policies if needed, AAA members can more confidently use Turo for renting and listing vehicles. Just take proactive steps to verify you have adequate coverage in place.