Intact Now Covers Car Sharing with Turo

Turo is Ontario’s first peer-to-peer car-sharing company. Turo allows local car owners to offer their personal vehicle to a community of pre-approved renters through an online marketplace. Peer-to-peer car sharing is very similar to renting a car from a rental company, e.g. Enterprise, but instead of using a car from a company owned fleet, you borrow the vehicle from a local individual.

The owner lists their car at turo.com. It’s free to register and the owner controls the pricing and availability of the vehicle. Once listed, their car can be viewed by a community of Turo renters. When someone chooses to rent the vehicle, a request will be sent to the owner for approval. The owner coordinates when and where to meet their guest for vehicle drop-off and again for pick-up when their rental is finished. Turo is very user friendly for both the owner and the renter. See the chart below on the steps for both parties.

TURO owner and renter steps
Cars listed on Turo must be 10 years old or newer, and have an odometer reading below 200,000 km, with some exceptions. All users are pre-screened for trust and safety purposes. Turo requires a one-day minimum rental term but the average rental period is 5.5 days. The company takes 25% commission for each rental from the car owner and collects another 10% of the total trip price from the renter.

Intact Insurance is insuring Turo, it’s vehicle owners and renters. Intact has identified three periods that need to be covered:
– Personal use: Regular personal usage of the vehicle.
– Delivery period: Vehicle is being delivered by the owner to the renter.
– Rental period: Vehicle is being used by renter.

So far, only Intact policies can cover vehicles for this type of peer to peer sharing. We’re hopeful more insurers will allow this type of use.

Intact has outlined that it’s personal auto policy continues to provide coverage when the owner uses his or her vehicle for personal use. But, while the vehicle is being delivered to the renter and in possession of the renter, coverage will be in place on a commercial fleet policy issued by Intact Insurance. See the below image for a breakdown.

TURO coverage shart

The commercial fleet policy is issued to Turo to cover the vehicle when in use during the delivery and rental period. The named insured will be Turo and Turo will be responsible for the premium and the $1,000 deductible. This means no deductible for the vehicle owner and that their insurance policy will not be affected if a renter is in an accident.

The commercial fleet policy covers all vehicles for any incidents arising while the vehicle is being used by the renter. The following coverages are included in Turo’s commercial fleet policy:

• $2M Third Party Liability
• Standard Accident Benefits
• Physical damage limit of $75K
• Replacement cost for up to 4-year-old vehicles

See the image below on how claims are reported to Intact or Turo on behalf of the renter.

TURO claims handling

The company has a nationwide presence in more than 2,500 cities in the U.S. and has safely facilitated more than one million rental days to date. With a strong consumer demand, they are moving into international markets, starting in Canada. Turo already operates in Alberta and Quebec.

If you’re interested in listing your car on Turo, please click here for a quote. You can also give us at call at 416-237-0436. We’re happy to help.

 

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