Whether you’re flying across the country or heading out on a road trip, renting a vehicle is often part of the travel experience. What many travelers don’t realize is that not all rentals are treated the same from an insurance perspective.
In recent years, peer-to-peer rental platforms like Turo have become increasingly popular, but they can create insurance questions that don’t always apply to traditional rental car companies. Before you get behind the wheel, here’s what you should know.
Traditional Rental Cars vs. Turo
A traditional rental company owns and maintains its fleet of vehicles. Turo operates differently. Instead of renting from a business-owned fleet, you’re renting a vehicle from another individual through an online platform. While the experience may seem similar, the insurance implications can be very different. Many travelers assume their personal auto policy will cover either option exactly the same way. That’s not always true.
Does Your Auto Policy Extend Coverage?
Many personal auto policies provide some level of coverage for traditional rental vehicles. However, coverage can vary depending on:
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Your carrier
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Policy language
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Where the rental occurs
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The type of vehicle rented
Turo introduces additional complexity because some insurers treat peer-to-peer rentals differently. Before renting, ask:
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Does my policy extend coverage to Turo vehicles?
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Are there exclusions for peer-to-peer rentals?
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Will my liability coverage apply?
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What deductible would I owe if the vehicle is damaged?
Understanding Liability Exposure
The biggest concern often isn’t damage to the rental vehicle. It’s liability. If you’re involved in a serious accident that causes injuries to another person, the financial consequences can be substantial. Understanding what liability protection applies before an accident occurs is critical. This is especially important when traveling in unfamiliar areas or driving vehicles you don’t regularly operate.
Umbrella Coverage Matters
Serious accidents can exceed the liability limits provided by an auto policy. An umbrella policy may provide additional protection above underlying limits, potentially helping to protect assets if a major claim occurs. Travel is an excellent time to evaluate whether your current liability protection is adequate.
Don’t Wait Until the Rental Counter
Many insurance questions are easier and less expensive to answer before your trip begins than after an accident occurs. The goal isn’t just having insurance. It’s understanding how that insurance works when you’re driving a vehicle that isn’t yours.