What is Turo? How Does Turo Work?

What is Turo?

Turo stands as a peer-to-peer car sharing platform, offering car owners the opportunity to rent out their personal vehicles to individuals in need. Think of it as akin to Airbnb, but for cars. Amidst steep rental car fees and often restricted availability, Turo and similar alternate car rental services have emerged as saviors. The escalation of rental car costs became a prominent narrative during the pandemic, reaching unprecedented heights in July 2021.

The saga of exorbitant rental car prices has persisted post-pandemic. The U.S. Bureau of Labor Statistics revealed that as of January 2023, car rental rates had surged by 36% in comparison to January 2020, the last plausible month pre-dating the COVID-induced lockdowns in the U.S.

Conversely, the allure of peer-to-peer car sharing platforms has retained its allure, experiencing a surge in popularity. As per data from market research firm Global Market Insights dated July 2021, the global car sharing market had breached the $2 billion mark in terms of value in 2020. Moreover, it is projected to sustain a 20% annual growth trajectory from 2021 through 2027.

How Does Turo Work?

Turo operates as a peer-to-peer car rental platform, providing a streamlined process for both car owners (hosts) and renters. Here's an in-depth breakdown of how Turo works for both renting and listing a car:

Renting a Car on Turo:

1. Finding a Car:
   1. Renters visit the Turo website or app and click on "Book a car."
   2. They enter their desired location (city, airport, hotel, address) and specify the rental dates and times.
2. Browsing Listings:
   1. Turo displays available listings based on the search criteria.
   2. Each listing includes details such as the car's make, model, year, a photo of the vehicle, rating from previous renters, and the trip price per day.
3. Booking a Car:
   1. Renters choose a listing that suits their preferences and provide rental details, including pickup and drop-off locations, preferred protection plan, and a message for the host.
   2. The host has a set time (30 minutes to eight hours, depending on the rental start date) to respond to the request. Some listings offer "Book Instantly" for automatic approval.
4. Picking Up the Car:
   1. On the rental start date, renters meet the host at the agreed location.
   2. The key transfer can be done in person or through the Turo app for remote unlocking.
   3. Some listings offer direct delivery, while others are available at designated public areas.
5. Using the Car:
   1. Once picked up, the car can be used as if it were the renter's own vehicle.
   2. Renters are responsible for reporting any tickets, damage, or issues to Turo and the host promptly.
   3. Turo provides 24/7 roadside assistance.
6. Dropping Off the Car:
   1. On the last day of the rental, renters return the car to the designated drop-off location.
   2. The process mirrors the pickup, and any changes to the drop-off date require communication with the host.
7. Payment:
   1. Turo charges the renter's payment method 1-3 business days after the trip concludes.
   2. Additional fees may apply, such as the Turo Young Driver fee for those under 25.

Listing a Car on Turo:

1. Listing Your Car:
   1. Hosts provide details about their car, including license plate number, make, model, year, VIN, at least one high-quality photo, and a written description.
2. Pricing Your Car:
   1. Hosts use the Turo "carculator" to determine a competitive rental price based on their car's details, location, and comparable listings.
3. Responding to Requests:
   1. Hosts have a specific timeframe (30 minutes to eight hours) to approve or deny rental requests from potential renters.
4. Dropping Off the Car:
   1. Hosts set up preferred pick-up and drop-off locations for their car.
   2. On the rental start date, hosts drop off the car at the agreed location, either in person or remotely.
5. Picking Up the Car:
   1. At the end of the rental, hosts retrieve their car from the renter using a similar process to drop-off.

How Does Turo Work With Insurance?

Liberty Mutual serves as the provider of insurance coverage for vehicles on the Turo platform, contributing to a comprehensive safeguarding system. A noteworthy element of this insurance package is the inclusion of up to $750,000 in liability coverage. This coverage is a standardized feature within every hosting plan, thereby ensuring a consistent level of protection.

However, it's important to highlight that the specific extent of coverage can fluctuate, contingent on the individual car and the chosen plan by the renter. This tailored approach ensures that the insurance meets the distinct requirements of each transaction, enhancing the overall user experience.

An added boon to renters is the provision of 24/7 roadside assistance integrated into Turo's insurance offering. This thoughtful inclusion provides renters with a safety net, encompassing assistance in cases of vehicle breakdown during their rental period. This alleviates the financial responsibility for the car owner and offers a seamless experience for renters, bolstering the platform's commitment to customer satisfaction.

While Turo's insurance stands as a robust shield, it's crucial to underscore that it is not a substitute for personal car insurance. Engaging with Turo as a host or renter mandates the continuation of your own individual car insurance. This dual-layered approach guarantees comprehensive coverage, encompassing both Turo's insurance provisions and your existing personal insurance.

What Does a Turo Do?

The core principle of the Turo car rental system revolves around effectively connecting vehicles that are ready for use with individuals seeking their services. Car owners, known as hosts, make their vehicles accessible by listing them as available for rental within specific regions and at designated timeframes.

Prospective renters navigate the listings to identify the car that suits their requirements within their desired location. Upon selecting a vehicle, renters initiate a request to the hosts, outlining their intent to rent the chosen car.

Subsequently, hosts review and approve these requests, establishing the rental arrangement. Once the approval is granted, the host arranges for the vehicle to be positioned at a predetermined location, facilitating a seamless pickup process for the renter.

Renters then embark on their designated period of usage, making the most of the rented vehicle according to their pre-defined timeframe. Upon completing the agreed-upon rental duration, renters return the car to the predetermined location for the host to retrieve. 

Where is Turo Available?

Turo does not enjoy the same expansive reach as some of its counterparts in the realm of peer-to-peer service applications. The platform's availability extends solely to the United States, Canada, and the United Kingdom. However, even within these countries, there are limitations to its coverage. For instance, if you're a resident of Canada, it's important to note that Turo's services are not uniformly accessible across the entire country.

For Canadian users, Turo's operations are concentrated in specific provinces. The platform caters to residents of Alberta, British Columbia, Nova Scotia, Ontario, and Quebec. These regions represent the areas where individuals can engage with Turo's services. It's worth considering this geographic constraint when contemplating the utilization of Turo's peer-to-peer car sharing within Canada.

How to Sign Up for Turo?

The process of getting started with Turo is straightforward and user-friendly. Here's a step-by-step guide to help you through the initial registration process:

1. Download Turo App:

• Head to the Play Store (for Android) or App Store (for iOS) on your smartphone.
• Search for "Turo" and download the official Turo app.

2. Launch the App:

• Open the Turo app on your smartphone after it's installed.

3. Explore Available Vehicles:

• Upon launching the app, you'll have the opportunity to search and explore the available vehicles. This provides a glimpse of the exciting options at your disposal.

4. Sign Up:

• To proceed with renting a vehicle, you'll need to sign up for a Turo account.
• Turo offers multiple options for signing up:
  1. Use your Google or Facebook account for a quick registration.
  2. Alternatively, you can sign up using your email address.

5. Provide Details:

• If you choose to sign up with your email, you'll need to provide some basic information such as your name, email address, and password.
• Follow the prompts to complete this step.

6. Verify Account (If Required):

• Depending on the platform's requirements, you might need to verify your email address or other details to ensure the security of your account.

7. Access Your Account:

• After successfully signing up, you'll have access to your Turo account.

8. Start Renting:

• With your account in place, you can now browse, select, and rent vehicles from the available listings on Turo.

9. Complete Booking:

• Choose the vehicle that suits your needs and preferences.
• Select your desired rental dates and times.

10. Confirm Reservation:

• Follow the steps to confirm your reservation, which may involve specifying pick-up and drop-off details.

11. Payment:

• Provide the necessary payment details to secure your booking.

12. Enjoy the Ride:

• Once your reservation is confirmed, you're all set to enjoy the rented vehicle for the specified duration.

What Are the Advantages and Disadvantages of Turo? 

Advantages of Turo:

• Cost Flexibility: Turo's pricing can be more variable than traditional car rental companies. Prices are often set by individual car owners, potentially leading to more competitive rates and money-saving opportunities.
• Convenience: Turo's wide range of available vehicles might be more convenient in terms of location and availability compared to traditional rental car companies. Vehicles can be found in various neighbourhoods, providing more options for renters.
• Extended Pickup and Drop-off: Many Turo rentals offer 24/7 pickup and drop-off options through Turo Go. This flexibility allows renters to access and return vehicles at their convenience.
• Local Community Benefits: Since a portion of the rental fees goes directly to car owners, Turo can contribute to keeping money within local communities.
• Diverse Vehicle Selection: Turo offers an array of vehicle types, from compact cars to electric vehicles to luxury cars, giving renters more choices to suit their preferences.

Disadvantages of Turo:

• Additional Fees: The initially advertised rental cost on Turo can increase significantly due to various additional fees. These fees may include trip fees, protection plans, mileage fees, cleaning fees, and more, potentially leading to unexpected expenses.
• Insurance Coverage: While Turo provides optional protection plans, relying solely on these plans might not be suitable for those who have credit card car rental coverage. Turo's insurance may not align with coverage from traditional credit cards.
• Inconsistent Experience: The quality and condition of vehicles can vary among Turo listings. Some renters have reported issues with cleanliness, maintenance, and adherence to Turo's policies.
• Limited Coverage by Credit Cards: Turo's unique peer-to-peer model might not be covered by traditional credit card rental car insurance policies. This can leave renters with less comprehensive coverage compared to traditional rental cars.
• Geographic Limitations: Turo's availability is limited to specific regions and cities, which might not be suitable for travelers in areas where the service is not yet established.
• Unpredictable Costs: With various fees, potential reimbursements, and cleaning violation penalties, the total cost of a Turo rental can be difficult to predict accurately.
• Host-Driven Experience: Turo's rental experience is influenced by individual hosts, leading to potential inconsistencies in communication, service quality, and vehicle conditions.

Ultimately, choosing Turo over traditional rental cars depends on individual preferences, needs, and awareness of potential costs and benefits.

What is the Procedure for Turo Cancellation?

Turo Cancellation Procedure:

When unforeseen circumstances disrupt your travel plans and you need to cancel your Turo car rental, the platform provides a clear procedure to follow. Here's a step-by-step breakdown of what to do:

1. Access the App or Website:

• Log in to your Turo account through the app or the company's official website.

2. Initiate Cancellation:

• Locate the booking you need to cancel and select the option to initiate the cancellation process.

3. Contact the Host:

• It's recommended to communicate with the host as soon as possible to inform them about the cancellation. Open communication can help manage expectations and foster a smooth process.

4. Understand Cancellation Policies:

• Familiarize yourself with Turo's cancellation policies, as they vary based on when you booked the vehicle and the duration of the trip.

5. Cancellation Timeframes:

• If you booked the vehicle more than 25 hours before the trip starts, you can cancel without incurring charges up to 24 hours before the trip.
• If you made the booking within 25 hours of the trip start time, you have a one-hour window after booking to cancel without penalties.

6. Cancellation Fees:

• Trips longer than two days: Cancelling these trips will incur a cancellation fee equal to one day's trip cost.
• Trips shorter than two days: Cancellations for such trips will result in a fee equal to 50% of one day's trip cost.

7. Refund Amount:

• When cancelling, you'll receive a refund based on the cancellation policies and timeframe.
• For trips longer than two days, the refund will be calculated minus the cancellation fee.
• For trips shorter than two days, half of one day's trip cost will be deducted as the cancellation fee.

8. Delivery Fees:

• If you've paid for delivery fees, cancelling the trip will result in only half of those fees being refunded.

Host Cancellations:

• If a host cancels your booking, you will receive a complete refund.
• Hosts who cancel may be charged a fee for the inconvenience caused to the renter.
• An automatic review mentioning the cancellation will be generated on the host's listing.

Preventing Cancellations:

• To mitigate the risk of last-minute cancellations, thoroughly review host profiles and read their reviews.
• Having a backup plan (Plan B) in case of cancellations can help you navigate unexpected changes.