Turo Protection Plans vs. Insurance: What’s the Difference?

If you’re a Turo host, you’ve probably heard people refer to the protection offered through Turo as “Turo insurance.”

That wording can create a lot of confusion.

There is insurance involved in a Turo trip, but not every protection Turo provides to a host is an insurance policy. In fact, Turo specifically states that it is not an insurance company and that the physical damage reimbursement provided to U.S. hosts through its earnings plans is contractual reimbursement — not insurance.

Understanding that distinction is important because your Turo earnings plan and your own auto insurance serve different purposes.

First: Turo Now Calls Host Protection Plans “Earnings Plans”

If you’ve been hosting for a while, you probably know them as host protection plans.

In 2026, Turo changed the terminology. Beginning March 31, Turo began referring to its U.S. host protection plans as earnings plans.

You’ll still hear hosts call them protection plans, and you’ll see older information online using that terminology.

For this article, when we discuss a host’s Turo protection or earnings plan, we’re talking about the plan a host selects that determines things such as their host share and financial responsibility for eligible physical damage during a Turo trip.

So Is a Turo Earnings Plan Insurance?

Not exactly. There are two different components that are important to separate.

For U.S. hosts, Turo’s current earnings plans include third-party automobile liability insurance provided under a policy issued to Turo by Travelers Excess and Surplus Lines Company.

Separately, eligible physical damage to the host’s own vehicle is generally handled through contractual reimbursement from Turo, subject to the host’s selected earnings plan, damage responsibility, terms and exclusions.

Turo explicitly states that this physical damage reimbursement is not insurance. That distinction is one of the biggest things new hosts misunderstand.

Liability Insurance and Physical Damage Are Two Different Things

Imagine your guest causes an accident during a Turo trip. There could potentially be damage to your vehicle and to someone else's vehicle or property — or injuries to another person. Those are different exposures.

Third-party liability insurance addresses the host's potential legal exposure for covered bodily injury or property damage claims involving other people.

Damage to your own Turo vehicle, however, isn't paid by that liability policy. For U.S. hosts, eligible physical damage to their vehicle is instead addressed according to Turo's contractual physical damage reimbursement terms under the selected earnings plan.

Think of it this way: Liability = damage or injury involving other people. Physical damage reimbursement = eligible damage to your Turo vehicle.

What Does Your Turo Earnings Plan Do?

When you choose an earnings plan, you're deciding how much of the trip price you want to earn in exchange for how much financial responsibility you're willing to accept if eligible damage occurs.

Under Turo's current U.S. structure, the three primary earnings plans generally provide host shares of 70%, 80%, or 90% in most markets, with corresponding per-trip damage responsibility amounts of $250, $1,500, or $2,750. Some markets use dynamically adjusted host shares based on booking lead time.

In simple terms: More protection = you generally keep a smaller percentage of the trip price but accept less damage responsibility. More earnings = you generally keep more of the trip price but accept greater damage responsibility.

That is a business decision every host should make based on their own risk tolerance. Don't choose a plan based only on which one lets you keep the highest percentage. Ask yourself what happens financially if your vehicle comes back with thousands of dollars in eligible damage.

What Does Turo's Physical Damage Reimbursement Cover?

For U.S. hosts, Turo states that its earnings plans address eligible physical damage occurring during the reservation period, including collision and most comprehensive-type events such as theft, fire, vandalism, animal impacts, and falling objects, subject to the applicable terms and exclusions.

After the host's applicable per-trip damage responsibility, Turo may reimburse eligible repair costs up to the lesser of the vehicle's actual cash value or $200,000.

That does not mean every type of loss involving your vehicle is covered. For example, Turo states that its U.S. host earnings plans don't include reimbursement for wear and tear, loss of hosting income, or a replacement vehicle while yours is being repaired.

As with any protection arrangement, eligibility, exclusions, reporting requirements and other terms matter.

Your Guest's Protection Plan Is NOT Your Earnings Plan

This is another important distinction. The protection option selected by your guest and the earnings plan selected by you as the host are separate.

Turo explains that a guest's protection plan limits the guest's potential out-of-pocket responsibility for eligible physical damage, while the host's earnings plan determines the physical damage reimbursement available to the host.

So don't assume: “My guest bought the best protection, so I'm completely protected.” Your host earnings plan controls your relationship with Turo regarding reimbursement for eligible physical damage to your vehicle.

Then Why Do I Still Need My Own Auto Insurance?

Because your Turo earnings plan isn't a replacement for the underlying insurance you need for your vehicle.

Turo's Terms require hosts to maintain their own auto insurance policy for vehicles listed on the platform and to meet applicable minimum insurance requirements. Turo also notes that additional coverage, including physical damage coverage, may be necessary for vehicles subject to a lease or loan.

Turo's host earnings plans generally apply to Turo reservation periods. Your vehicle still needs insurance outside of those reservations. This is where off-trip insurance becomes important.

What Happens Between Turo Trips?

Imagine your guest returns your vehicle Monday. Your next reservation starts Friday. On Wednesday, you drive the vehicle to have the brakes serviced and get into an accident. That's not the same exposure as damage occurring during your guest's active Turo reservation.

Or maybe the vehicle is sitting at your house between trips when it's damaged. Again, you need to know what insurance applies.

Turo itself tells hosts that they still need their own auto insurance and explains that if a vehicle is damaged when it isn't on a Turo trip, the host would need to look to their applicable underlying insurance.

That's why having a Turo earnings plan does not eliminate the need for appropriate off-trip insurance.

“But I Already Have Personal Auto Insurance.”

Having an insurance card doesn't automatically answer the question. Personal auto insurance carriers can have exclusions and underwriting restrictions involving peer-to-peer car sharing.

Your carrier may restrict coverage while the vehicle is being shared, and its underwriting guidelines may affect whether it is willing to insure a vehicle participating in car sharing at all.

That's why hosts should review their actual policy and speak with a licensed insurance professional rather than relying on another host saying: “I've had this company for years and they've never said anything.”

Never having a problem isn't the same thing as confirming coverage.

Protection Plan vs. Insurance: The Simple Version

Here's the easiest way to remember the difference:

Your Turo earnings plan helps determine what happens financially between you and Turo when eligible physical damage occurs to your vehicle during a Turo reservation.

Third-party liability insurance included with Turo trips addresses covered liability claims involving injury or property damage to others.

Your underlying auto insurance addresses applicable exposures outside the Turo reservation, according to the terms, exclusions and underwriting requirements of that policy.

Those pieces can work together, but they aren't interchangeable.

Don't Wait for a Claim to Figure Out What You Have

The worst time to learn the difference between insurance and contractual protection is after your vehicle has already been damaged.

Before listing a vehicle on Turo, you should understand your selected earnings plan, your per-trip damage responsibility, what isn't reimbursed, your liability protection, your off-trip insurance, and any requirements imposed by a lender or lienholder.

If you're unsure how your insurance should be structured, Green Atlas Insurance works with car-sharing and rental operators to evaluate available coverage based on their vehicles, state, ownership structure and business model.

You can complete our quote request form to tell us about your operation and determine what available insurance options may fit your needs.