Nitrowolf

Turo Handbook for New and Experienced Hosts

I'm putting together a guide for new and experienced hosts alike. I see the same questions pop up time and again, so I figured it may be time to put all the most common questions and situations in one place. Please take the time to read through this entire document before asking the same questions everyone else asks!

Comments
This needs to be stickied
Thanks for this guide and all the updates you've done! I read this before starting and after starting Turo at least a dozen of times!
So apparently if you get commercial insurance, your car is not covered for personal use and you can't drive it. If you get personal insurance, your car is not covered for turo. So what do people do for their personal cars? Just get one plan for that car and everything else on commercial insurance?
You can still keep your personal policy on the vehicle for when you drive it. it's what I do with my personal vehicles that I rent out.
Yeah, it sucks paying 2 premiums, but it's the cost of doing business.
Great write up. How have you found people to manage your rental fleet in different areas (or even locally)? I’m looking to move the work or managing my cars onto someone else but am unsure of the best way to do it.
Word of mouth mostly. Usually someone with a large fleet already who knows how to manage cars, and I also look for references that have cars hosted with them already.
Hi. Thank you for such a detailed post!
Since getting commercial insurance is hard for a smaller fleet, so if I run the business w/o commercial insurance, the worst case when really bad things happen(death involved) would be the company going bankrupt and I lost all the cars, is it correct?
And a lot of hosts probably would be in this situation I guess?
No, worst case is they pierce the corporate veil, which would be trivially easy for most LLCs. If you are using your personal insurance, you are comingling your finances/resources, and thus your personal assets are all up for grabs during a lawsuit.
So worst-case scenario is you lost everything you own, all your money, and you are in debt for the rest of your life.
People don't realize how dangerous renting a car under their own personal insurance and/or name is. It just takes one idiot and you and your family are now living under a bridge for the rest of your lives. Even if you win the case, you still have to pay the lawyers tens or hundreds of thousands of dollars to protect yourself from losing everything.
If your insurance carrier wouldn't deny coverage for business use, you'd be in a much better position, but it's the worst of all possible worlds here. Your insurance won't cover you, you can't get insurance for what you want to do, and if you get sued, everything you own personally and business wise is up for grabs.
I've been contemplating how to get around this, and I think the most logical way to handle this if you insist on doing everything under your personal insurance is to put literally EVERYTHING you own in a trust. All your money, your house, etc... that is NOT associated with Turo is in a trust. That way, if/when you get sued, you have nothing to attach and thus even if you are in debt for the rest of your life, you can still draw on the trust for your daily living.
Trusts like this are somewhat complicated to setup, but once you do, everything you own is VERY protected. Certain Trusts have MORE rights than you do as an individual, and thus are immune to even the government taking it, much less civil lawsuits.
After reading this, the takeaway is that renting ones personally owned and insured car out on Turo is a really risky, generally bad idea, and they shouldn’t do it- unless they are, essentially, an independent rental car company. Which I believe you indicated that you are, operating outside of Turo?
So, is there no middle ground?
The points put forth suggest that Turo is almost fraudulently, purposefully misleading the public on multiple levels. If that’s true, then they are ripe for a class action lawsuit. Hosts who have been wronged by Turo, banding together to prove true what was described in this handbook.
The points about personal insurance not covering renters is correct, the fact that we live in a litigious world is right, and going through an insurance claim is a slow and frustrating process, and at the end of the day, you have to look after yourself. Again, all true statements.
But, there is no ultimate insurance coverage for anything. Frankly, my personal insurance company suggested I put everything in a trust, before I ever had a business to speak of- if the paper deliver person trips on your front steps and breaks their neck on your property, they could sue for way more than $1M, and win here as well.
While at first the information seemed generally insightful, after some consideration, it may be a bit biased. It is no secret that traditional RACs don’t like Turo, but for different (financial) reasons.
Please be careful that, as worded, this post could be seen as a scare tactic cloaked as useful (miss)information.
No, I only operate within Turo. I do have the ability to rent outside of Turo, but I don't. The only exception to this is my Lotus Exige, which it's unknown wether or not Turo will cover it if there's an issue, so I have renters sign a rental contract for that, but the rental is still handled through Turo. I only keep the paperwork in case there's a claim and Turo won't cover it for some bullshit reason.
There is no safe middle ground, you are correct. You are at risk if you listen to Turo. They lie straight up and without question. You can verify this yourself if you do even just a little bit of due dilligence. Turo is absolutely, without a doubt misleading people on many levels.
Putting everything you own in a Trust is definitely a good idea.
If it is biased, it's only because I have been burned many, many times by Turo and have learned many hard lessons. You can believe in a conspiracy or a scare tactic if you want, go ahead. When you get screwed by Turo, don't cry to anyone though, since you knew ahead of time when and how they'd screw you... so it's all on you at that point. I would turn it around and say you sound like a Turo shill, personally. All the information I've posted here can be verified independently by anyone with very little difficulty.
Most of the information here is common sense, but it's not stuff you think of off the bat, and Turo tells you outright falsehoods to get you to earn them money without any risk to themselves, which can also be verified by asking literally ANY established host that's been around for more than a few rentals.
Turo is not a car-sharing company, they are an insurance company. They make money off the host and off the renter for insurance... and the more claims they can deny, the more money they make. The car-sharing part is just incidental to their unlicensed insurance operations.
Thank you
Amazing. Thank you so much for this incredible wealth of information!!
Awesome info man, it sure how I overlooked this before. Insurance seems so tricky. It’s almost a guaranteed risk when you start. Wow.
Wow.. thanks you for this great write up. I was really concerned about having the proper insurance to do Turo under an LLC and you really cleared up my questions I had been looking for. I wanted to try turo as a side gig and just rent out one car to start, but it appears it's not worth the risk .. as proper car sharing insurance is a hug issue / hurdle.
Thanks for the info.
Thanks for the great write up! For exotics, do you ask the renter to sign a piece of contract/document to protect you as a host?
Yes, but only because it helps me cover the car under my commercial insurance policy.
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Well, personal insurance is the way you handle that, but you are putting yourself at risk if something happens during a rental. The ONLY way to cover yourself is commercial insurance, otherwise you are at risk. I wish there was a better answer, but that's ultimately the only one I know of.
Turo knows this, but they don't admit it. It's pretty deceitful IMHO.
Where do you park your cars?
Long term airport parking lot.
This is really useful. Thank you for taking the time to compile this information.
What does this mean exactly?
My personal insurance is so that I'm covered if I'm driving my car while it is not being rented.
Why would I be in the car while a renter is driving?
And the car would be covered under the Turo insurance that I'm paying for (30% of the daily price) while the renter is in the car.
Am I missing something here?
I'm not sure how to make it any clearer. When you are renting your car on Turo (or delivering/picking it up from a rental), your personal insurance carrier does not cover you, at all. (And if you are delivering/picking up, Turo does not cover you... so in that instance, you have zero coverage from anyone.)
Turo claims they cover you while the car is rented, but if and ONLY if you haven't screwed up any one of the million little details they require of you to be covered. The chances of you doing everything right, everytime are virtually zero... thus Turo will decline your coverage if they can find one single thing out of place.
They already do this on small claims. They will be doubly sure to disqualify you on a $1,000,000 payout, you can rest assured. Additionally, if the damage/loss of life/loss of limb results in more than $1,000,000 in coverage, Turo will pay that out and you are on your own. When was the last time you heard of a death or major injury lawsuit stopping at $1,000,000 in payouts? $1MM is chump change in that arena.
Also, you will be sued personally, since you own the vehicle. Turo has no business in that, and you're going to be on your own when that happens. Turo cares about Turo, not you.
Reading this soon. Just moved to Hawaii and the Turo market here is thriving. Jumping in very soon.
About remote hand-offs & pictures of car before trip: You(OP) say: “I provide superior service through my remote hand-off system” So: 1.do you or a person you hire go to the airport and take and upload pictures in the 24hour period before the trip? Every time when there is more than 24 hours between trips?
2.RELATED Question: Is not enough that the guest(renter) uploads all the required pictures-just before they take the car?(Let’s say we demand to take and upload pictures from guest as requirement for them to be able to rent from us)
Yes, the person I have working for me takes pictures before and after every trip. Since I have so many cars, he is there every day (except Sunday - in this case he will take pictures the day before or after. There is a RARE occasion that a car comes in and goes out on the same day on a Sunday (most days it's just an ending rental and a new rental on that car doesn't start until Monday), which then I do have to rely on the renters for pictures, but thankfully this is rare)
As for the guest uploading photos... You just have to assume all the guests are retarded, because that's the only safe assumption and most of them are. You can very rarely get the photos you need from them when everything is good and on the up-and-up. Some are just stupid and can't follow directions. Some follow directions but not exactly. Some have crappy cameras (most) and/or don't understand how to frame shots.
But more importantly, if there's damage, they are going to take strategic angles that don't show the damage... so no you can NEVER rely on renters to upload photos, because they won't upload photos if there's a problem.
Also, it's a huge burden on the renters anyway, since you really need more than basic photos to protect yourself. It's very important you take photos of the undercarriage of the vehicle. Lots of expenside damage occurs under there and renters can't/won't/shouldn't be expected to climb under the car to take pictures.
Man, I've got stories about undercarriage damage that I could tell you. Pictures pictures pictures.
I have updated the guide to reflect information on Clean Titles and on Mileage limits.
You MUST have a clean title and it MUST never have been deemed a total loss by an insurer... and this is determined solely by CARFAX, not by your title. You may have a clean title, but if Carfax says otherwise, or it's been listed as a total loss (Hail damage type stuff), then Turo will refuse your coverage when you go to make a claim.
Turo will let you list a car with more than 130,000 miles, but will then deny coverage when you go to make a claim.
if I list a car at say, 125k miles for its first trip. Will they deny coverage when the odometer passes 130k? Or is the 130k claim denying only a problem with vehicles that had their first Turo ride after 130k?
Fantastic write up. Do you have any information on how much money can be made on average if one follows all your advice?
Check
As with the "what car is good?" question, it depends entirely on your market.
You probably aren't going to make a lot of money in Western Kansas, but will make more in Eastern Kansas, etc... LA is very saturated, so not a lot of money there, whereas another city in CA might be better.
Excellent article, thank you for the advice.
If personal insurance is about as good as tissue for protecting a Turo host, would you be able to pass along the insurance risk to the renter by having them sign a contract stating that damages during their trip will be designated as their responsibility and that you require, as part of your rental, that they claim under their personal policy as a "renter" to cover the costs?
Also, what about the use of two-way automatic dash cams that recored the drivers as well as the road in-front of them during their trip? Do you think that this would be a useful item for a Turo rental vehicle that wouldn't scare away potential clients?
There might be some obvious holes that I am missing in here but would like to hear your thoughts.
Thanks.
You could do the contract thing, but the guests are going to balk at that a lot, I suspect, and it's a pain in the ass. Additionally, not all renters have personal insurance. In fact, Turo is specifically for people that are too risky for traditional RACs to accept - meaning people without credit/insurance/etc... So that's a pretty dry well you are going to be plumbing.
As far as dashcams goes, I tried that... anything not nailed down in a car will be damaged/broken pretty quickly. Renters don't care and they are idiots, so you're stuff will get stolen or broken.
With regards to commercial policies... this just happened, and it's why I stress above that not having commercial insurance is insane if you are renting on Turo. This is from a host in one of our private Host groups:
Turo does NOT have your back here. They never will. If and when there is an accident involving injury in your vehicle, Turo is going NOPE the hell out and you are stuck with the multi-million dollar bill, because your personal insurance sure as hell is not going to cover it.
The ONLY thing that will cover you is a commercial car rental policy written through GMI or Sonoran. You are just tempting fate if you rent out on Turo without one of these policies.
Taken from
"Liability coverage protects hosts against lawsuits for bodily injury and property damage to third parties that occurred during the trip period."
Isn't a passenger considered third party?
This isn't to undercut your point of having commercial insurance, it is definitely super important. But I feel like this situation should be considered under their policy.
Great guide, one area to add if possible is 'tools of the trade' like gps trckers, keys, etc.
Thanks again!
That's kinda already covered by the other sticky, and I'm running out of room (character limit) for additional content in that post.
Thank you for the info, sorry I'm a little late in finding this. My Mercedes C 300 was considered to be in an "accident" through collision coverage with my insurance recently because there was a metal pipe thing laying on the freeway that scraped the bottom of the car and needed AC repair as a result (which has been repaired). You listed "has ever been in an accident" as not qualifying for hosting on Turo -- do you think my situation is still not an exception considering all I did was run over a debris on the road? That seems awfully harsh considering original MB parts were covered with the repair...but technically it's listed as an accident -- so I really can't host my car?
I've purchased vehicles that had an accident on the report, but they were still listed as having a "clean title" since nothing else was wrong with it and it had been repaired...
Thanks again for the info
From my understanding, you should be ok, so long as your title wasn't branded salvage, rebuilt, or total loss by the insurance company. As long as Carfax says the title is clean, I believe Turo will cover the vehicle, or at least, I have not heard of them denying coverage when a Carfax says the title is clean.
It's funny you should mention that, I just bought a new Caravan that has damage to the front right listed on the Carfax, and I'm wondering if Turo will nitpick that if there's ever an issue... the title is clean and the Carfax shows clean as far as that goes, but it does list damage to the right front. So I'm in the same boat as you at the moment for all practical purposes.
Any advice for taking good undercarriage pictures?
And thanks so much for writing this up!
I'm currently wondering if I want to got the get-around route or the turo route, and this is useful / helpful!
Also is it possible to see your listings page?
With regards to the undercarriage, nah, they don't have to be difficult. Just get your camera under there and snap a few pictures. If you really want to get fancy, just get a selfie stick and put it under there.
You just want basic shots showing that nothing is hanging down or obviously damaged. Generally, anything damaged on the undercarriage is really going to be screwed up (hanging down/leaking/hole in it, etc...) so it will be obvious something is different between the before and after pictures.
I can't post my profile, I think it's against the forum rules.
I know some of you don't believe me, or at least don't want to believe me when I say Turo will find ANY reason to not pay out your claim and leave you hanging with ZERO protection... but with the most recently revised TOS, they clearly spell out the fact that they will leave you to suck it for ANY POSSIBLE reason they can find. Go check the Terms of Service yourself (
The bolding is mine. They are trying to make their TOS iron clad on when they deny you... meaning if you forget one single thing in their byzantine set of rules, that change on a weekly basis (I'm not kidding, try to keep up with the changes to the TOS), they will deny your claim.
Of course, they will let small things slide, but when it comes to the big payday, the one where you NEED their $1MM protection, they will use ANY and ALL excuses to not cover you, rest assured.
Do you have any thoughts on the Metromile/Turo partnership?
https://www.metromile.com/blog/metromile-and-turo-are-teaming-up-to-redefine-auto-insurance/
https://turo.com/blog/news/metromile-turo-redefine-auto-insurance
I've been calling them periodically to find out when this will actually launch. The metromile rep I spoke to yesterday said either Q4 this year or Q1 2020. This could maybe be what we're all looking for.
It's been "in process" for years now. I don't expect it to ever come to actual fruition.
Thanks for all the info nitro. Also stukovx has posted good stuff. Correct me if I'm wrong, but it seems like it's not worth it unless you go all in. For the majority of people that are doing Turo, it seems like they are not doing it correctly and just risking lots of liability for little return. For the people that have just a few cars, it doesn't seem worth it because they would essentially be paying for 3 car insurances which will eat up all the profit. You have to pay Turo for liberty mutual insurance, then you have to have commercial insurance to cover yourself just as backup and then personal insurance so you can drive your own car.
I've read that USAA allows you to do turo. Maybe that's the only realistic option for people doing it on the side?
Well, it depends on what your goal is. If you want to just cover your car payments, it might be worth it. If you want to make a profit, it's not as easy as one would hope.
The main problem is the insurance. Turo says they cover you when they don't, and that's the lynchpin of their whole system. They dupe unsuspecting hosts into putting up their assets and risking them and it costs Turo nothing. YOU are taking all the risk, not Turo.
What needs to happen is a major carrier like State Farm, Farmers, etc.. (why the HELL isn't Liberty Mutual doing it... ask yourself that. They back Turo, supposedly, but will cancel you if they find out you're listing your car on Turo with a personal policy. That should be a HUGE red flag to anyone paying attention. The SAME company that's backing Turo's "$1MM liability" policy will CANCEL you if they find out you're listing your car on Turo. Seriously??) needs to have a rider available like they do for Ridesharing. That way, you are covered "off duty" and supposedly Turo will cover you while on duty. But if Turo NOPES out, like they usually do, then your Insurance carrier has your back. Right now, nobody has your back except commercial insurance.
USAA and a couple others I've heard about will not drop you if you list your car on Turo, but they won't cover you if anything happens while on rental. So if LM/Turo nope on out for a claim, your insurance carrier won't cover you either and you're stuck with the bill.
You mentioned asking the guest for their insurance card upon delivering the rental car.
If i understood everything youve said, my own insurance policy wont cover me because im NOT driving.. so does that mean the guests policy will cover MY car if they happen to wreck it while THEY'RE the ones driving it?
If thats the case, my plan would be to ask every person who wants to rent my car off turo for their insurance cards and see what kind of coverage they have. If not then i would simply cancel the ride and fine someone else who has coverage.
Would this theory work in practice?? While i save money to get my own commercial policy
In theory, you could do it that way. I believe it might be against the Turo TOS, but I'm not 100% sure about that. I only do it on the one car that I'm not sure if Turo will cover (my Lotus).
But yes, you are correct, that your personal policy will not cover your car when it's being used for commercial activity, such as renting it out on Turo. Typically speaking, the renters policy WILL cover them if they are using your car. However, someone reported that in certain states, Geico has new language in their policy that excludes that, so even the renters insurance won't cover it.
Small update suggestion:
For the "dealing with cops" section, consider telling them that the car wasn't stolen in the traditional sense. That it was "theft by conversion," which is the technical term for keeping rental property you don't own. That should work when the cop says "its not stolen, you gave them the keys."
Thanks for the informative post, but I’m confused and frankly have been confused for the last 2 years about Turo. Your general tone indicates that Turo is deceptive, sleazy, extremely risky and generally not worth dealing with, yet you have a fleet of cars, some that are worth good money, which equals a pretty big investment with them. Which, in turn, means you’re making good money. Without getting into specifics could you share why you have so much invested with them if they’re obviously such a risky venture? General total revenue or per vehicle revenue or whatever? I’m in the perfect position to put a fleet out there because I’m a used car dealer and can get great deals on cars, but my experience mirrors the general attitude towards Turo which is “it’s just not worth it”. I’ve had a 2009 bmw 328 convertible listed with them for a month. With their automatic pricing, they had it priced at 30 something dollars a day, which is ridiculously cheap for a bmw convertible. This is a car I have for sale so I didn’t really care, whatever. It got rented out 3-4 times, and average it netted me 25 bucks a day. The renters were great, no issues, picked up from my house. I put full coverage insurance on it which was 100 bucks a month. So far it’s made 75 bucks net profit and hasn’t even covered the insurance. That’s without taking into account oil changes, tires, and the general looming feeling of someone smoking your car and starting a long drawn out battle to just get what I have invested in it. So I raised the price to minimum 50 bucks a day and have gotten no other interest. This is in Texas by the way. This is on a 6k car, so I can only imagine how it would be on a 50k Tesla. And again I’m still very intrigued because a couple years ago there was a guy on reddit who had a beautiful fleet, multiple vettes, Tesla’s, jags, etc, so what’s the consensus here?
If I were looking to start a Turo business right now, I would not do it. I started several years ago, so I'm vested in the process.
I also have experience navigating the byzantine TOS and am tied into the resources that let me know about changes that I would not otherwise know about (Facebook groups, etc...) that would torpedo me when I missed a new rule that Turo added. I have been screwed by Turo numerous times when they change the rules, or contradict their own TOS, etc... I, fortunately, know the TOS better than all of the customer service representatives as this point, so when they tell me something incorrect, I know they are wrong and can escalate it via links directly to the TOS that supports my side. It's still a huge pain in the ass process and they still tell me incorrect information... and if I wern't armed with my experience, I would easily give up and take it at face value.
I would most definitely not invest in Turo at this point if I weren't already invested. Vehicles are depreciating assets and you don't "invest" in a vehicle. A vehicle is an expense. With the thin profit margins now, it doesn't make a lot of sense to put anything but the cheapest shooters on the platform. I'm slowly trading out all of my cars for $3500 shitboxes, because those are the only thing that makes sense. If it goes tits up and you lose the car and Turo won't reimburse you, well, you're only out $3500 intead of $35,000. Turo has basically created an environment where renting out nice cars is a recipe for disaster. They desparately want nice cars but only want to pay for shitty cars, so they get shitty cars from the smart people, and nice cars from the people who don't know they are getting screwed or are bad at business/finances.
With regards to your BMW, I'm surprised you aren't getting more rentals? Typically, though, if you aren't doing free airport delivery, your rental rate is going to be cut drastically. You lose your place in the search rankings on Turo, and many guests will just pass your car by. The farther you are from the airport, the less rentals you are going to get.
Just as an FYI, if your car isn't registered in your name (or a business name) it will NOT be covered by Turo. Renting out on dealer plates is against the TOS and will result in them NOPE-ing on out when it comes time to pay out. If you're renting out on your own commercial insurance, then it's less of a concern, but I believe that's not strictly legal... not that I would personally care about that, but it may be of concern to you.
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What an awesome post! Thank You so much for spending the time and effort for putting all this information together for the rest of us!
You were very clear, but I have to quadruple check what you are saying because it blows my mind.
If I use my personal car insurance exclusively for Turo, doesn't that violate the terms of the insurance on most states? Don't most/all insurance companies not allow you to use your car exclusively for Turo? If that's true, that means the vast majority of cars listed on Turo/Getaway violate the terms of their insurance?
You are welcome! I have a 2nd post, Turo 201: Advanced Topics if Hosting coming out as soon as ... well... as I get around to it.
To answer your question about insurance... it varies by insurance company. Some will allow it, but not cover you and most will just drop you if they find out.
None will cover you, though, so you need commercial insurance to be truely covered in the event of a claim and Turo abdicates their responsibility, which they will do for any possible reason they can find.
Yes, it's very true that the majority of vehicles on Turo are at great risk, and the hosts are putting themselves in the scope of financial ruin and lots of headache/heart ache/hassle and don't even realize it.
Is there a way not to go into triple insurance? I have to personally insure the cars at my residence, then cover it on Turo, and then the Renter covers their end. Why go through all the headache if its "Super Insured"? Does getting that commercial insurance able me to cut my costs on the insurance since it is about 30 to 35 precent off the top? Please advise. And what do you do about financing, do you pay cash for cars, auctions, the New AFC line of credit, or finance at the dealership?
There is a way, yes... but it comes with it's own problems.
If you have commercial insurance, you can forgo your personal and Turo insurance (Assuming you don't drive the car for personal reasons. If you do, then you still need personal insurance).
However, if you forgo the Turo insurance, by going with the 90% plan, you lose out on a lot of benefits for the 5% difference from the Basic plan, such as billing, collections, vehicle recovery, and liability insurance. In my opinion, it's not worth the 5% to lose all that.
Most of my cars are on the Basic plan, unless there's a snow storm or incliment weather, then I switch to the Standard plan (Just had a snow storm, switched my insurance to Standard, and sure enough, 2 wrecks... 100% covered by Turo).
The problem comes if you use your cars for personal reason, then you need to at least double up insurance. Personal policies won't protect you during commercial activity and commercial policies won't protect you during personal activity. So... you're stuck. In my case, the majority of my cars are for Turo only, so I only have the commercial policy and Turo's policy in effect. On my personal vehicles, I have all 3.
As far as paying for cars goes, I buy most of mine with cash. I have a few financed, and a few leases. But I wouldn't recommend financing or leasing unless you can absorb the entire cost of a loss, which I can do across my entire fleet, so it's not a huge risk. But if you're not able to absorb the ENTIRE cost of the vehicle without pain, do NOT finance or lease vehicles on the platform, because you're one wreck away from being upside down on a loan or lease.
In my case, it's worked out quite well on 4 of the 7 vehicles I have leased. 3 of them have made a huge profit, one is looking to break even, and two are kinda iffy and I'm looking to dump the leases next month. I'm probably not going to do any leases going forward.
AFC is way too high an interest rate to even be a consideration. Dealer financing can be ok if you can find a 0% or really low APR deal.
But in the end, paying cash for the cars is your best bet.
Have you ever made a claim with your commercial insurance?
It seems as though US Choice only covers your claims if you have a signed rental agreement and since you do remote handoff, is it still covered without a signed rental agreement?
No, I have never made a claim. Commercial insurance is only for a catastrophy, not general claims.
The Turo rental agreement counts as a signed agreement, at least for GMI. I made sure to clarify that several times when entering into the policy.
Just curious, in the case the entire fleet (or 1 car) is titled and registered under your LLC, why wouldn’t you just pay for a business general liability of $1 million and a umbrella policy of another million (around $2k per year for both combined), instead of your commercial auto policy that you mentioned that you only save for catastrophic cases and have potential loopholes as well?
There is a company called ABI that offers a Period X insurance product that essentially does what the MetroMile and Turo partnership is said to do (tracker and scheduled based handoff of insurance responsibility), with the only downside being ABI restricting your personal usage of your commercial vehicle to 250 miles per month.
I would imagine that this Period X commercial auto insurance product for car sharing + $1 mil general liability + $1 mil umbrella would be way more cost effective and safer (a lot less loopholes) than getting a commercial auto policy for each car that is only used for catastrophic situations with terms that don’t seem too reassuring + personal policies for each car you want to drive personally in the event Turo doesn’t want to cover the Big Bertha lawsuit that might come down on you.
I’m honestly curious about this because traditional car rental companies use general liability + umbrella + commercial auto (replaced by Turo + Period X in this case) as their method of covering themselves and their cars when conducting business, and we as hosts should be able to replicate this process with slight changes to just the commercial auto side with carsharing specific components.
How are you doing on turo now? My market has shifted. Too many people starting to under cut my prices and some dealerships are renting out there slow cars for some turnover money. I'm not making a profit and forced to match prices. I'm sinking here any advice?
My profits are down substantially compared to last year, as well. You can't really compete with people who aren't in it (or don't know enough about business) to make a profit.
I would look to other markets nearby you could move/expand into that aren't so crowded.
I recommend checking
A) Can you add a section on how you manage remote hand offs?
B) As you and everyone else has reiterated, WE should not do it, but YOU are fine to do it... Now I get it, and I appreciate the warning. I have no doubt that you're being transparent and have nothing to gain by edging others out of the giant marketplace... but how did you get to where you were pre-commercial insurance? You certainly took the risk at some point? I'd really like to do this to offset the loan, but this is pretty discouraging.
A) Yes, I will try to add a section on my Turo Hosting 201 Advanced Conecpts writeup I've been (slowly) working on.
B) I didn't know any better at the time. The unfortunate fact is there's no safe way to go about getting into the business. You will basically have to take the risk of getting sued into living under a bridge until you can build a large enough fleet and enough experience to get the commercial insurers to talk to you. Three+ years ago, people didn't understand and/or insurance agencies didn't know what Car Sharing is, and they lumped it in with Ride Sharing... so a lot of agents said people were covered under the Ride Sharing riders, and that turned out to not be the case... and the few cases that were submitted for claims got denied by the underwriters because it was commercial use where someone else was using the vehicle, and not the owner.
I wish I had a better answer... and there probably eventually will be once insurance agencies catch up to the modern world. Car Sharing should, theoretically, be a better deal for insurance companies because they don't have to cover the car when it's rented out, thus decreasing their liability. But insurance companys are notoriously slow to adapt to new technology until there's lots of statistical data available to assess the risk.
You mentioned a remote pickup/drop off service, how do you handle that exactly? Thanks for the write-up!
I have a proprietary automated system for locking/unlocking after pictures are uploaded. I still verify drivers license photos manually, though.
What do you recommend if I own a bmw and I want to rent it out on the weekends and when I go on vacation?
Are you emotionally attached to your car? Is it your baby? Then I wouldn't rent it out. If you can drive it off a cliff tomorrow and not care... Then, maybe. But you still have the insurance thing to contend with.
Nitrowolf it's a great guide, I unfortunately have battled Turo's claims department quite frequently. It is a no you are not covered tactic which is why they were kicked out of New York. I wrote a super dissertation that crushed them in arbitration. Lots of wasted time and energy for no reason.
Yeah they do that a lot. I am glad you beat them in arbitration. They need more people to do that before they change their shitty ways
Can you share your tactics to beat them please?
Ed bolian talks about this with his stolen lamborghinis/other cars - there's a term called "theft by conversion", i.e. you hand it to them first, then it "becomes" a theft... not sure. But he could hardly convince police to even come retrieve a stolen car with him.