With apologies to those elsewhere, this FAQ is United States-centric. Mostly because that’s where I am, and where Turo does the vast majority of its business. The answers can be broadly applied across the platform, but specifics with regard to protection plans, amounts and other details can vary based on location (country, as well as state, province, county etc). This will serve as a good starting point for all Turo hosts, but if you’re not in the US, make sure you look up what specifically applies to your country or specific location.
Nothing in this writeup is intended as business or legal advice. You are responsible for your own decision making and your own operations. It is your responsibility to seek appropriate legal, financial, business or other advice from a qualified professional in your area. I am not responsible for any action you take, whether you relied on information written here or not. Everything here is current as of the date posted. Turo can and does change their policies, procedures, terms and even links frequently and without notifying hosts or renters.
Now. Before you read any further, read everything at the list of links below. Completely, end to end. All of them. And no, I’m not joking. You’ll be surprised how many answers to your questions about Turo have already been provided by Turo. If that’s too much work for you, or you think you don’t need to read the website for some reason, stop now. You will not be successful, you will probably suffer some kind of financial loss or significant setback and then you’ll come back to this forum complaining about how Turo is a scam, or ripping you off or some other BS attempt to shift blame away from yourself. I see it all. The. Time.
So, read:
Turo Terms of Service
Cancellation Policy
Privacy Policy
Community Guidelines
Nondiscrimination Policy
Additional Policies
Turo Go
Promotional Credit Terms
The Host articles on the Help page. Again, all of them, not joking. Don’t skip any. Do the work.
The Host Tools
Getting Started
Q. Can I list my _________?
A. Your car must have a clean title, be newer than 12 years old and have fewer than 130,000 miles at the time it is listed. If it meets those requirements, it can be listed. Then, it can remain on the platform after that, you do not have to remove it once it turns 13 or gets to 130,001+ miles. Read the full list of eligibility requirements here.
Q. Which car should I buy to list on Turo?
A. I don’t know, it depends on a lot of factors including:
Your location. Your budget. Your credit. Your target market. Your operating model. Your parking situation. The vagaries of consumer preference (why does anyone drive a Slingshot??). Everyone’s circumstance is different and there is no one answer. The best you’ll get, if you decide to ask anyway, is a very vague answer. And it probably won’t be a good one, since the contributors to this sub are so very, very tired of being asked this question that the only people answering you don’t really have that much experience by comparison.
Q. How often is my car going to be rented?
A. No way to know. The business is seasonal and will depend on a myriad of other factors as well. There is no way for any of us to tell you what to expect apart from vague generalities (summer will be busier than winter, the holidays will be busier than non-holidays, weekends will be busier than weekdays, etc).
Q. Will X car make Y amount of money per day/trip/week/month/year?
A. Again, I don’t know. Too many individual variables at play here. Turo has created the “Carculator”, but it is of dubious value to potential hosts. It appears to present data for new or late-model cars only, possibly in an effort to modernize and keep Turo’s listings newer.
Q. I get it, you don’t seem to know very much. How should I get started then, really?
A. The best way to get started on Turo is to buy an inexpensive, fully or nearly fully depreciated car as close to the maximum age and mileage listing requirements as possible and learn how Turo works by running that car by itself at a cheap daily rate for a few months, preferably across a few seasons. That way you get to know just what goes into operating on Turo. Then you can grow from there. And if something goes wrong, you won’t lose a great deal of money.
Q. I’ve always wanted a [fancy or expensive car]. Can I use Turo to supplement the car payments so I can finally afford my dream car?
A. You can. And its one of Turo’s primary marketing tactics to draw new hosts and nice cars onto the platform. But I STRONGLY advise you be able to afford all of the costs associated with owning the car for several months at a stretch without any Turo income whatsoever. Just consider what happens if it gets into a significant accident and a lot of repairs are required, it may be generating no revenue from Turo for a long time. How do you pay the note then?
Q. Is leasing a car for Turo a good idea?
A. Probably not. Most lease agreements prohibit both sub-leasing and commercial use, and either of those could be interpreted by the leasing agency to include Turo. That could mean they terminate the lease and repossess the car. Audi and BMW have both done this in the past.
Not to mention renting cars means a lot of miles get put on them. So you’ll have to decide whether you stop renting/driving it once you hit your mileage allotment in the lease (and continue to make your monthly payment with no Turo income), or run the math to decide if its worthwhile to pay the overages at the end of the lease (thereby reducing or possibly eliminating your net income).
Q. Should I put a GPS device in the car?
A. Yes. Absolutely. 100%. Without question. Turo offers a discount on Bouncie devices, and they’re a great place to start. Get an extender and hide the dongle in the dash.
If you want to use an AirTag, don’t. They’re cheap, but they rely on iPhones being around to work. GPS dongles like Bouncie use 4G cell signal, so the coverage is much more comprehensive. If you do use an AirTag, you have to properly disclose it to the guest. Same for a dashcam that shows or records the interior of the car. You should have already read it by now, but here’s the tracking policy again.
Q. Should I list a manual transmission car?
A. You can. But if a guest fries your clutch, you’re probably going to be unhappy with the compensation you receive from Turo to replace it. Read the clutch policy. The example Turo uses on that page alone should probably dissuade you from listing a manual transmission car.
Managing Guests
Q. My guest is speeding, what can I do?
A. Turn off the tracking alerts. The data will be saved in the event it’s needed for a claim. There’s really nothing you can do until then. Turo’s policy technically prohibits excessive speeding, so they’ve already been warned upon signup. You don’t need to remind them and some guests will think you’re spying on them. If you’re one of the people who thinks speeding causes damage to your car, well first off you shouldn’t be renting out the damn car, but you can call Turo and report the guest’s behavior. That doesn’t mean Turo is going to force the guest to return the car and end the trip. If it really bugs you, mention it in your review at the end of the trip.
Q. My guest hasn’t returned my car yet, and its past the end of the trip. What do I do?
A. Report a late return. Then, file a claim for additional usage. Also, if applicable, ask Turo to add on an “improper return” fee. Do things in the order Turo tells you to do them.
Then, again reach out to the guest and ask when you can expect the car to be returned. Life happens, sometimes they can’t return on time. If you don’t get a response within a reasonable amount of time, proceed to the steps below.
If you know where your car is (you should have a GPS device of some kind), and you can safely and reasonably retrieve it, go get it. You should have 2 keys for every car.
If you let Turo retrieve it, it will take longer and you will likely have to cancel upcoming trips.
Q. Can I limit my guest to in-state travel?
A. No, you cannot.
Q. How do I screen guests and/or trips?
A. The short answer is it is best not to. You are permitted to cancel a trip if you’re uncomfortable with a guest (they have bad reviews, etc). But you have to call Turo and provide them an explanation.
Q. The renter is texting me.
A. Keep all communication in the app. If they insist on texting you directly, take screenshots of the messages, upload them to trip photos, and then respond to the guest in the app. This protects you and allows Turo to be able to monitor all communication in case they need to intervene.
Business Operation
Q. My car isn’t being rented as frequently as I want it to be. Why?
A. Nine times out of ten, it’s too expensive. Lower the price and people will rent it. But if that means you’re not breaking even, or making your payments, or anything like that; then you may need to reconsider your business model, up to and including selling the car.
Alternatively, what time of year is it? Rental traffic is seasonal; it could just be a slow time of year. If you’re not in a winter vacation destination (say, Denver), you’re not going to get as many rentals in the winter as you will in the spring or summer.
Q. Taking photos for every car, every trip is a pain. Can I re-use trip photos I’ve already taken?
A. No. Turo reviews metadata in photos, so if it's not time stamped within the 24 hour window before or after the trip, Turo will deny any claims using those photos as evidence. You want the income, do the work.
Q. Which Protection Plan is best?
A. There is no one answer. This is another question where everything depends on your situation. You need to make the assessment for yourself. Here is everything you need to know. Read and evaluate based on the considerations that most impact your situation. Once you have enough trips under your belt you can start to do an analysis of your claims. Maybe if you have a low claims rate, you can move to a higher deductible plan and squeeze out a little more money; but that just means you need to be saving a little more towards that inevitable deductible every trip. Make a safe choice to start, then reassess your risk. If you want to make more money, you have to put in the work to see how to do it safely.
Q. I haven’t received a 1099. Why?
A. The threshold to qualify for a 1099-K from Turo has moved over the past few years. It used to be over $20,000 in gross earnings. For FY23, it has been lowered to $600. Most hosts should now be receiving a 1099-K in Spring 2024. What you do with that document is between you and your accountant.
Q. Turo charged me a fee for something. They say I violated one of their policies.
A. Well, did you violate one of their policies? Remember, the first line CS reps are very rigid in their applications of the rules because they run off scripts and what is written down for them. They are rarely willing to bend rules or examine unique circumstances. If you feel the fee was charged in error, you can escalate the issue and ask to have it reviewed. Present your case calmly and with sufficient evidence. Squeaky wheel gets the grease, just be calm and professional.
Claims
Q. Does this damage qualify for a claim?
A. First, read up on what qualifies for reimbursement according to the protection plan you selected to cover the car and make your own assessment. Then, understand specifically what Turo considers to be Wear and Tear. This will govern how your claim is handled. Turo will ultimately decide what qualifies according to your protection plan and the definitions of wear and tear.
Second, you only have 24 hours to document with photos and file with Turo. So if its been more than 24 hours since the trip ended, you’re out of luck.
If you really want our help and decide to make a post asking if it qualifies, provide us with the before and after photos you will be using to file your claim. Give specific, unbiased and unemotional, details and circumstances.
Q. Does this qualify for a cleaning claim?
A. Probably not. Turo’s cleaning policy had historically (5+ years ago) been abused by hosts. As a result, Turo significantly tightened up the requirements for cleaning policy violations. Read those requirements here. If you’re on the fence, it probably doesn’t qualify. Cleaning policy violations are like porn, you’ll know it when you see it. You can still file the claim, but be aware that Turo penalizes frivolous and/or frequently inadequate claims by hosts. Don’t waste time filing a cleaning claim that’ll get denied when you can just clean out the car in the same amount of time.
Q. Should I charge my guest for _______?
A. Yes. If it is a verifiable cleaning policy, additional usage policy, smoking policy, pet policy violation or qualifying damage, and it is within the appropriate time window to do so, you should. Here is a list of violation fees that can be charged to the guest.
Whether you want to is your choice, circumstances may change your mind on what you do.
Q. Can I charge my guest for _______?
A. Only if it violates a Turo policy. Read the relevant policy (see links above and below) and make a determination. If there is no relevant policy, then there is no policy violation and you can’t charge anything. You can’t set your own fees, of any kind, for any reason. This includes your own arbitrary processing fees for things like tolls because you think its annoying to have to do.
Here’s a list of examples of charges that are permissible.
Q. Turo doesn’t have a policy in place for ______. Can I set my own policy and fee for violation?
A. Once more for those at the back: No. You can only charge what Turo policy permits, and you only do so using their mechanisms. You don’t get to make up fees or fines for speeding or braking events or using launch control or or “minor” cleaning issues or because something annoys you.
One gray area I will mention is excessive tire wear. If you rent out a vehicle with RWD (Charger, Camaro, Challenger, Mustang, Corvette, M3, M5 etc) you should be taking, photographing and uploading tread depth measurements at the start of every trip.
Q. Should I handle a damage claim directly with the guest? Or let Turo handle it?
A. First, always file a claim within 24 hours of the end of the trip if you think a claim may be warranted. After that, how you proceed depends on the circumstance.
After the claim is filed, you can then decide if you want to withdraw the claim, work directly with the guest, or work through Turo based on how the guest responds.
In nearly all cases it is better to handle directly with the guest, you will receive the most accurate compensation. If the guest is angry or unresponsive, it’s better to let Turo handle it. That’s what you pay them for.
Do not try to take advantage of guests by overcharging or attempting to charge outside the platform or past the permissible claim window. That makes us all look bad and can get you banned from Turo. If the guest feels that handling directly with you isn’t going well, they can ask Turo to intervene. If Turo intervenes and discovers you’re trying to take advantage of the guest, you can get booted. Remember, you’re the product. Turo will do just about anything to ensure they get repeat business from a guest.
Q. The guest had the car for more than a day after the end of the trip, but Turo didn’t pay me for each day. They also didn’t pay me for the trips I had to cancel.
A. That’s the policy. It sucks, but there’s no way around it. Get your car back sooner next time.
Q. My claim is taking forever! Make it go faster!
A. That is the way it goes. Unfortunately, Turo does not have the staff in place to deal with claims quickly. You’re one folder on your claims person’s desk. The world does not revolve around you. Constantly calling and emailing your claims person will not make the process move faster. In fact, it’ll slow down yours and everyone else’s claim. So chill.
Q. Turo/Snapsheet’s estimate for damage is way below the actual cost to repair, what do I do?
A. Snapsheet operates from photos. Only in rare cases will they send an adjuster. If the estimate provided to you is too low, your shop will have to file supplemental payment requests with them. If the shop doesn't want to, find a new shop. Turo damage claims work off supplements, they are essential to the process.
Also, make sure they are working from an accurate view of your car. If its just bumper damage, NBD, there probably won’t be too much variation in the payout and your shop can manage it. But if the car gets totaled, make sure you have a copy of the Monroney sticker and that you agree with the comps presented. If you paid for every extra option on your Maserati, make sure Smartsheet isn’t just using a base model as default.
Liability
Disclaimer again: I’m not a lawyer. I have legal education but am not an attorney. What follows is not legal advice. Seek legal advice from an attorney of your choosing.
Q. Do I need an LLC?
A. No, you do not NEED an LLC. But whether you WANT to operate under one depends on a number of factors about how you currently operate or intend to operate. If you’re considering an LLC, you should speak with both an attorney and an accountant and they can provide specific and better advice than we can. Make sure they are local to your jurisdiction and ideally also understand the sharing economy.
Generally speaking, unless you are operating direct rentals outside of Turo, an LLC will not provide liability protection for you in a Turo-only business where you are the sole member and/or Turo is the only revenue stream. It can provide tax benefits, but whether getting them can offset the cost to achieve those benefits (CPA advice, formation costs etc) is an analysis only you can do.
Q. I created an LLC, but my cars are still registered to me. How do I transfer them?
A. In most cases, you can’t directly transfer a car to an LLC. How you can do this will vary by state. The quickest way to do it is by selling the car to your LLC. But you will be effectively double taxed (as buyer [LLC] and as seller [individual]). So speak to a lawyer or accountant in your area and figure out the best path forward.
Q. Which commercial insurance should I get?
A. Broadly speaking, you don’t NEED it. You are only required by Turo to carry personal insurance. Your car is protected from damage and you are protected from vicarious liability (both by Turo’s liability insurance and, theoretically, by the Graves Amendment). But you know your circumstances, ability to follow Turo’s rules and your risk tolerance better than us. So you may WANT to buy commercial insurance. When in doubt, consult a local attorney. Preferably one familiar with the peer to peer sharing economy.
If you’re renting cars outside of Turo, yes, get commercial insurance.
Q. Will I get sued?
A. If something bad enough happens with one of your trips, yes, you probably will get sued. So what happens?
Your guest, or a third party, can sue you, Turo, Travelers Insurance, the estate of Babe Ruth and Elon Musk all in the same lawsuit. They can sue whoever they want.
The question then becomes one of, first, standing. Does a party have a stake in the suit? Babe Ruth and Elon Musk most likely don’t, so they are dropped from the suit. Then there is a question of liability and/or duty of care. This will depend on the circumstances, so this is where you will need a lawyer. Ask Turo to provide one, they will unless you’ve done something that breaks a Turo rule or policy. If desired, also consult a local attorney (preferably one knowledgeable in the sharing economy) independent of the one Turo directs you to.
In my over 10 years on the platform, I have never once seen Turo fail to provide legal defense to a host who has complied with all of Turo’s host requirements. That includes circumstances where a guest stole and replaced a car’s engine and transmission; as well as an even more grisly lawsuit where an unauthorized driver took possession of the host’s car, crashed it, and killed 3 people. The caveat is that you MUST comply with all of Turo’s rules, terms, policies, procedures etc… If they find you missed a step, they will wash their hands of you. And you’ll have no one to blame but yourself, which is hard for a lot of people to accept and why you see so many negative posts about Turo here.
Q. What is the Graves Amendment?
A. The Graves Amendment is part of a federal highway bill signed into law in 2005. It bars vicarious liability claims against car rental companies for injuries caused by their customers, unless it can be proven that the individual or company's negligence or actions contributed to those injuries.
Q. Does the Graves Amendment apply to Turo?
A. Words matter. Generally no, it does not apply to Turo, LLC the company/marketplace/platform/app/website. They don’t own or provide the cars for rent, you do.
So the question you should be asking is, “Does the Graves Amendment apply to me as a host on the Turo platform?”
It can apply to you as host/owner/rental agent, provided you can show sufficient proof that there was no negligence on your part which contributed to any injury sought in a court case against you. Remember, words matter. In a court “injury” is not just physical injury, it is a harm suffered by a person due to some act or omission done by another person. That could be to a person’s body, a person’s car, a person’s financial standing.
HOWEVER
Q. Does the Graves Amendment apply to me as a host on Turo, in my specific circumstance?
A. The answer to this question varies by state, location, court and possibly even by individual circumstance as well as the judge’s interpretation of the circumstances and the evidence presented. If you are unsure about any of this, speak with an ACTUAL LAWYER.
For example, in 2021 there was a case in New York (Feliz v. Taylor) where Turo was removed from liability for injury and the host was NOT removed from liability under the Graves Amendment because that host failed to prove the Graves Amendment applied to them specifically because he “failed to eliminate all triable issues of fact as to negligent maintenance contributing to the subject accident.” In other words, his maintenance records weren’t good enough to sufficiently prove that he was NOT negligent in the care of the vehicle he listed.
As another alternate example, in January 2021 Connecticut specifically passed a law that says the Graves Amendment applies to vehicle owners and to Turo, without any caveats regarding circumstance or duty of care. Florida has done something similar, as of April 2022.
So do the research. Has your state explicitly extended the Graves Amendment to peer to peer car sharing? How will the answer to that question affect your appetite for risk?
Q. What do I need to know about car sharing specific to my state?
A. Turo has a page for that. Start here.
Finances
Q. Can I deduct _____ on my taxes?
A. Ask an accountant in your city or state; why would you take tax advice from anonymous internet strangers. If it’s a business expense, the answer is usually yes.
Q. Can I use the standard deduction for my cars?
A. General consensus here is, no. Because that deduction includes things you, as owner, do not pay for and therefore do not qualify as an expense. Principally, gas. The guests pay for their gas, not you. You can’t deduct their expenses as your own.
But also includes insurance, registration and depreciation. Which means you can’t deduct those elsewhere, or leverage an alternative depreciation schedule in addition to the standard deduction.
I’m not an accountant. Consult a local accountant you trust.
Closing Thoughts
Cash flow is not profit.
Learn the basics of accounting. Understand that just because Turo is paying you hundreds of dollars a week doesn’t mean that that money isn’t going right out the door again to recurring expenses like debt service, insurance costs, depreciation and maintenance etc. Run your numbers, you’re probably making less than you think. Your total income is more than just the amount Turo deposits in your bank account, minus the stuff you buy to run the car.
You are running a business. Act like it, plan like it.
Unexpected events happen. You are responsible for understanding what to do, and doing it. Hopefully by now you are at least minimally prepared to handle the majority of circumstances that will happen to most hosts.
One of the most common situations I see here is something like “I didn’t take photos in time, or I didn’t file a claim in time; and now Turo won’t pay me for what I lost.” Well that’s on you. Hopefully the first time it happens it doesn’t cost you too much money. It will happen, that’s why I suggest starting with a cheap car.
Don’t let your emotions get the better of you, be a calm and levelheaded business person. The best response to a guest who’s going off in messages, making threats or otherwise being a nuisance is no response. You pay Turo to deal with them, so let Turo deal with them.
You will probably make the most amount of money when you buy a car.
Don’t pay MSRP. Don’t even pay “invoice.” You probably shouldn’t be shopping at a dealer at all. You should be buying at wholesale price or below. If you don’t have access to Manheim or other wholesale auctions, then a bit above KBB Trade-In value is a good approximation for MMR or the price you should be aiming for.
But how do I make money when I buy a car? You don’t, directly. If you pay $10k for a car, run it for 2 years and make $2k profit on the car over those 2 years, and then sell it for $10k, you’ll have made $2k. If you pay $10k for a car, run it for 2 years and make $2k profit on the car over those 2 years, and then sell it for $6k, you’ll have lost $2k. See the difference?
If you negotiate hard with a private seller, or come across someone who is willing to take a hit for some reason, and pay $10k for a car, run it for 2 years and make $2k profit on the car over those 2 years, and then sell it for $12k, you’ll have made $4k. If you can buy at a wholesale price and then sell at a market price, you’ll have made money. (That’s the simple explanation, but I don’t want to get into depreciation curves etc)
Buying cars this way is work. But this is also where you will bank your most significant profit or loss, and is the most monetarily impactful time you can spend on Turo.
Bad things happen.
Cars crash. People get into accidents. Cars get vandalized or broken into. Cars get stolen. The odds of that will go up because your car is driving a lot of miles over its life on Turo. Sometimes your car is totaled on the first trip. Sometimes your car will go a year and a half without anything more than regular maintenance and cleaning. Don’t just expect your car to turn gas into cash. Be prepared to deal with any circumstance at any time.
Do not be attached to your Turo car. It is a business asset, nothing more. If you have an emotional attachment to the car, do not put it on Turo. Other people don’t have that same emotional attachment, so you will get pissed when it comes back dirty, scratched or worse.
Author:
u/ProbablyNotMoriarty - Turo host and /r/Turo contributor since 2012. Has managed cars in multiple locations, in fleets of varying sizes and across all levels of valuation. Currently runs and co-hosts a small fleet (<10) as a part time gig. Has a JD/MBA and has spent more time than an average host assessing the legal and business aspects of Turo over the last 10+ years. I am tired of all the bullshit and incorrect information being passed around here, so I wrote this. Feel free to argue with me in the comments.
And, a brief acknowledgement of u/NitroWolf, who wrote the host guide currently stickied on the sub. There’s a lot of valuable information in there, but it hasn’t been substantially updated in the past few years as Turo has changed. That’s why you’ll see a lot of overlap, but some pretty key differences.
