Understanding Turo Protection Plans
The HostCaptain Launch Kit: Getting Started Series
Protection plans are one of the most confusing—and most important—decisions you'll make as a Turo host. Choose wrong, and a single accident could cost you thousands of dollars or wipe out months of profit.
This guide breaks down exactly how protection plans work, what each one covers, and which one we recommend for beginner hosts.
⚠️ Disclaimer
Protection plan details and deductibles can change. We've written this guide based on Turo's official documentation as of 2026. Always verify current terms at turo.com before making decisions.
The Basics: What Do Protection Plans Cover?
Every Turo protection plan includes two types of coverage:
🛡️ Third-Party Liability Insurance
This covers damage your guest causes to other people or property while driving your car. If your guest hits another car or injures a pedestrian, this kicks in.
Coverage: Up to $750,000 (up to $1,250,000 in New York) — same on ALL plans. Provided by Travelers Excess and Surplus Lines Company.
🚗 Physical Damage Reimbursement
This covers damage to your own car during a trip—collisions, theft, vandalism, weather damage, etc.
Coverage varies by plan: Different deductibles and additional benefits depending on which plan you choose.
💡 Important Clarification
Physical damage reimbursement is NOT insurance—it's a contractual agreement between you and Turo. Turo agrees to reimburse you for damage costs above your deductible, up to $200,000 or your car's actual cash value.
The Three Protection Plans (2026)
Turo now offers three plans. The percentage tells you how much of each trip's earnings you keep—the rest goes to Turo for the protection coverage.
| Plan | You Keep | Deductible | Liability Insurance |
|---|---|---|---|
| Max protect ⭐ | 70% | $250 | Up to $750,000 |
| Balanced | 80% | $1,500 | Up to $750,000 |
| Max earn | 90% | $2,750 | Up to $750,000 |
What Do the Deductibles Mean?
The deductible is your out-of-pocket cost before Turo reimburses you for damage. For example, on the Balanced plan with a $1,500 deductible:
- If damage costs $1,000 to repair → You pay $1,000, Turo pays $0
- If damage costs $2,000 to repair → You pay $1,500, Turo pays $500
- If damage costs $10,000 to repair → You pay $1,500, Turo pays $8,500
⚠️ The Deductible Trap for Economy Cars
If you're hosting a $10,000 economy car on the Max earn plan ($2,750 deductible), most small-to-medium repairs will cost less than your deductible. That means Turo pays nothing—you pay everything. A $1,500 fender bender? 100% your cost.
Breaking Down Each Plan
Max protect: Best Protection ⭐
✅ HostCaptain's Recommendation for Beginners
The Max protect plan offers the best balance of protection and manageable risk for new hosts. The $250 deductible is low enough that most repairs won't hurt your bottom line significantly. This is where we recommend starting.
Best for: New hosts, economy vehicles, anyone who wants peace of mind with a manageable deductible.
The math: On a $100/day rental, you get $70. The low deductible makes this ideal for beginners.
Balanced: Middle Ground
Best for: Experienced hosts with 2-3 vehicles who can absorb occasional $1,500 repair costs and want higher earnings.
Max earn: Maximum Earnings, Maximum Risk
⚠️ Not Recommended for Beginners
The Max earn plan looks attractive (keep 90%!) but that $2,750 deductible means you're essentially self-insuring for most damage. One bad incident wipes out months of that extra 20% you kept compared to Max protect.
Best for: Large fleet operators, hosts with commercial insurance, or those with significant cash reserves.
What About Your Personal Insurance?
This is crucial to understand: Your personal auto insurance likely does NOT cover your car while it's rented on Turo.
Most personal policies have a commercial use exclusion. During a Turo trip, your car is covered by Turo's protection plan, not your personal insurance.
📅 During Trips (Turo's Coverage)
Turo's protection plan covers liability and physical damage (minus your deductible). Your personal insurance is NOT active during this time.
🏠 Between Trips (Your Personal Insurance)
When you're driving your own car for personal use, your personal insurance applies. Make sure your insurer knows you're doing carshare/Turo—some policies require an endorsement.
⚠️ Important Warning
If your personal insurer doesn't know about your Turo activity and discovers it during a claim, they could deny the claim and cancel your policy. Always disclose your hosting activity to your personal insurer.
Advanced Strategies (For Later)
Some experienced hosts use different protection plans strategically. We'll cover these in detail in our Advanced Protection Techniques guide, but here's a preview:
🎓 Max earn for Luxury Vehicles
Some hosts with expensive luxury cars use the Max earn plan because the high daily rate ($200+/day) makes the 20% savings significant. But they need reserves to cover the $2,750 deductible.
🎓 Max earn for Large Fleets
Hosts with 10+ vehicles sometimes use the Max earn plan because they can "self-insure" across their fleet. One car's damage cost gets absorbed by profits from 9 others.
🎓 Commercial Insurance Integration
Some advanced hosts get commercial auto insurance that covers their vehicles 24/7, allowing them to use the Max earn plan while having backup coverage.
💡 Our Advice
Don't try advanced strategies until you have at least 6 months of hosting experience, 3+ vehicles, and a solid financial cushion. Start with the Max protect plan and learn the business first.
How to File a Damage Claim
If your car is damaged during a trip, here's the process:
💡 The Photo Rule
Take detailed photos at the start AND end of every trip. This is your proof that damage happened during that specific rental. Without before/after photos, getting reimbursement is much harder.
The HostCaptain Recommendation
Start with the Max protect Plan
For beginner hosts with one economy car, the Max protect plan offers the best balance:
- ✅ Manageable $250 deductible
- ✅ Keep 70% of earnings
- ✅ Up to $750,000 third-party liability coverage
- ✅ Low enough risk for sleep-at-night peace of mind
Once you have more experience, more vehicles, and more financial cushion, you can experiment with higher-take plans. But don't risk your business learning the hard way.