Suppose you’re a car owner who wants to rent out your vehicle through Turo. In that case, you may be wondering if your insurance policy will cover any damages or accidents that occur during the rental period. One of the insurance companies that many Turo hosts inquire about is Mercury Insurance. In this blog post, we’ll explore whether Mercury Insurance covers Turo and what you need to know before renting out your car on the platform.
What is Mercury Insurance?
Mercury Insurance is a California-based insurance company that provides auto, home, and business insurance to customers throughout the United States. The company has been in business since 1961 and has a reputation for providing quality insurance coverage at affordable rates.
Does Mercury Insurance Cover Turo?
The short answer is no. Mercury Insurance does not cover Turo. The reason for this is that Turo is considered a commercial car-sharing service, and Mercury Insurance policies do not cover the commercial use of personal vehicles.
While this may be disappointing news for some Turo hosts who are also Mercury Insurance policyholders, it’s important to understand that Turo provides its own insurance coverage to hosts during the rental period. This coverage is designed to protect hosts against any damages or accidents while their vehicle is being rented out.
Understanding Turo’s Insurance Coverage
Turo provides hosts with insurance coverage during the rental period, which includes liability insurance, physical damage protection, and roadside assistance. Here’s a breakdown of what each of these coverages entails:
Liability Insurance – Turo provides hosts with $1 million in liability insurance, which covers any damages or injuries that occur to third parties while the vehicle is being rented out. This coverage also includes legal defense costs if the host is sued for damages.
Physical Damage Protection – Turo provides hosts with physical damage protection, which covers any vehicle damage that occurs during the rental period. This coverage includes collision, theft, and vandalism and has a $3,000 deductible that the host is responsible for paying.
Roadside Assistance – Turo provides hosts with 24/7 roadside assistance during the rental period, which covers things like flat tires, dead batteries, and towing.
It’s important to note that Turo’s insurance coverage only applies during the rental period. Once the rental is over, the host’s personal insurance policy will be responsible for any damages or accidents while the vehicle is driven for personal use.
What About Turo’s Commercial Insurance Policy?
Turo also offers a commercial insurance policy for hosts who want additional coverage or have higher-value vehicles. This policy provides up to $1 million in liability insurance and covers any damages to the vehicle during the rental period, with a lower $500 deductible.
While Turo’s commercial insurance policy may provide additional peace of mind for hosts, it’s important to understand that this coverage is optional and comes with an additional cost. Hosts should carefully consider their insurance needs and budget before purchasing this policy.
What Should Turo Hosts Do?
Suppose you’re a Turo host who is also a Mercury Insurance policyholder. In that case, it’s important to understand that your personal policy will not cover any damages or accidents that occur during the rental period. However, Turo provides its own insurance coverage designed to protect hosts during this time.
Before renting out your car on Turo, reviewing the platform’s insurance coverage and understanding what is and isn’t covered is important. Hosts should also
consider purchasing Turo’s commercial insurance policy if they have a higher-value vehicle or want additional peace of mind.
It’s also important to notify your insurance company that you plan to rent your car on Turo. While your personal policy may not cover the rental period, your insurance company may have specific requirements or restrictions for car-sharing services that you must be aware of.
Also, hosts should protect their vehicles during the rental period, such as providing renters with clear instructions on how to operate the vehicle and what to do in case of an accident or breakdown. Hosts should also take photos of the vehicle before and after each rental to document any damages during the rental period.
While Mercury Insurance does not cover Turo, hosts can still rent out their vehicles on the platform with peace of mind thanks to Turo’s insurance coverage. By understanding Turo’s insurance policies and taking steps to protect their vehicles, hosts can enjoy the benefits of renting out their cars on Turo without worrying about the risks. As always, it’s important to review your insurance policies and notify your insurance company before renting out your car on any platform to ensure you have the coverage you need.