Turo is a peer-to-peer car sharing marketplace that allows private car owners to rent out their vehicles to guests. Often referred to as the “Airbnb for cars,” Turo provides an alternative to traditional car rental companies.
But how exactly does Turo work? This guide examines how the platform connects owners and renters, its protections, what vehicles can be listed, tips for maximizing earnings, and more. We’ll cover everything you need to know about how Turo operates from both the host and traveler perspective.
Table of Contents
Overview of Turo
Here’s a quick look at how the Turo car sharing platform functions:
- Car owners list their personal vehicles available for rental on Turo’s website or app
- Renters browse listed vehicles by type, location, and features, then book rentals directly from owners.
- Turo’s platform handles messaging, payments, and insurance between owners and renters.
- Owners earn income by setting daily or weekly rental rates which renters pay. Turo takes a cut.
- Renters pick up and return vehicles to owners locally, or have them delivered.
- Turo provides protection plans and roadside assistance during each rental.
By providing the platform and insurance, Turo empowers owners to become entrepreneurs renting out cars they already own but aren’t fully using.
How Owners List Cars on Turo
Owners can list their car on Turo’s platform in about 10 minutes:
- Create a Turo account and profile online or via the mobile app.
- Enter your vehicle’s basic information like year, make, model.
- Answer questions about features, options, and condition.
- Upload high quality photos showcasing the vehicle.
- Set your daily and weekly rental rates, availability calendar, and delivery options.
- Provide pickup/dropoff details like parking instructions.
- Confirm your identity and required documents.
- Get listed once approved! Update your pricing and availability anytime.
Turo reviews required documents and listings details to confirm eligibility before activating new cars on the platform. Then you’re ready to start receiving rental requests!
How Does the Rental Process Work?
Once listed, the Turo rental process works seamlessly:
- Guests search cars on Turo’s website or app by location, date, and other filters.
- Guests request to book a listing for selected dates.
- The owner approves the trip after reviewing renter eligibility.
- Turo collects rental prepayment from the guest’s credit card.
- Turo provides trip insurance and roadside assistance automatically.
- The owner and renter connect to arrange handoff of keys and the vehicle locally.
- After the trip, the owner rates the renter and Turo pays out the rental earnings minus their fee.
Turo handles booking, payments, and protection, enabling a smooth rental process between owners and guests.
Vehicle Eligibility Requirements
To be listed on Turo, vehicles must meet certain criteria:
- Be a passenger vehicle under 12 passenger capacity
- Be a 2005 model year or newer in most markets
- Have 70,000 miles or less in most markets
- Pass a safety inspection and minimum eligibility standards
- Have a clean title with no salvage history
- Meet minimum insurance requirements
- Have documented service history
- Renters must be 25+ to book in most cases
Turo focuses on newer, premium vehicles. Specific requirements vary slightly by listing region. Older “classic” vintage vehicles can also qualify in some markets.
How Much Do Owners Earn?
As an owner, your potential Turo earnings depend on:
- Vehicle appeal – Newer, luxury, or specialty cars often rent more frequently and at higher rates.
- Area demand – Major metro areas provide more renters and bookings vs rural locations. Airport proximity also drives demand.
- Pricing – Setting competitive rates relative to your vehicle’s value and location. Deal discounts can boost bookings.
- Availability – Cars listed more often rent more frequently.
- Ratings – Highly rated owners and vehicles get displayed more prominently.
- Responsiveness – Quickly responding to booking inquiries improves conversion.
Median owner earnings range from $500-$1000 per month according to Turo, with top owners earning thousands. Income scales with number of vehicles listed and reviews.
How Much Does Turo Cost?
Turo costs for owners include:
- Listing fee – One-time $99 charge to create your listing
- Commission – Turo takes 25% of the trip price from each booking
- Insurance – $20 per trip billed to help cover standard insurance
For renters, costs include:
- Trip price – The base rental rate set by owners for daily or weekly rental periods
- Booking fee – One-time $30 fee paid per rental booking
- Insurance – Cost added per day for insurance protection coverage
- Delivery fees – Optional fees if requesting delivery instead of self pick-up
Both owners and renters enjoy signing up and listing vehicles for free. Turo generates revenue from commissions, fees, and insurance plans to enable their platform.
Protection for Owners and Renters
Turo provides measures to protect owners and renters throughout each car sharing transaction:
- Up to $750,000 liability insurance during each trip
- Background checks on all renters
- Customizable rental criteria like minimum renter age
- Renter identity and driving verification
- Payment coverage for damages caused by renters
- $30,000 collision insurance with most vehicles
- 24/7 roadside assistance
- Free cancellation and refunds on most bookings
- Rental screening for quality vehicles
- Secure payments via the platform
- Renter guarantees if issues arise
This protection gives both parties assurance using the platform. However, owners may choose to purchase supplemental commercial coverage.
Tips for Maximizing Owner Earnings
Follow these tips to boost your rental income on Turo:
- List attractive vehicles – Newer, luxury, or specialty cars earn the most.
- Price competitively – Compare similar vehicles in your local market. Deal discounts increase booking conversion.
- Respond quickly – Fast inquiry responses lead to more bookings and 5-star ratings.
- Highlight features – Play up amenities to command higher rates like bike racks, winter tires, mobile WiFi, car seats, etc.
- Focus on demand zones – Airports, downtowns, and event venues feed most rental demand.
- Keep calendar updated – Block off trips or periods when vehicle not available to maximize bookable days.
- Provide extras – Treats like mints or charging cables improve renter experience.
- Take professional photos – Showcase vehicles attractively inside and out.
- Satisfy customers – Fulfill bookings reliably and address issues promptly to sustain great reviews.
Putting thought into your vehicle listing, pricing, and renter experiences leads to more trips completed at optimal rates.
Frequently Asked Questions
What types of cars rent best on Turo?
Newer luxury models, convertibles, trucks, specialty vehicles, and minivans with things like bike racks or snow tires. Airport renters frequently book affordable midsize sedans too.
Can I list classic or vintage vehicles?
In some markets, Turo allows vehicles 1990 and older to be listed if they pass expanded eligibility requirements. Insurance may be limited.
How does delivery and pickup work?
You can offer local pickup/dropoff yourself. Or Turo delivery by a professional driver can be requested by renters for added cost.
How does Turo vehicle insurance work?
Turo provides liability insurance as hosts. But experts recommend purchasing supplemental commercial policies for more coverage. Gaps can exist.
Does Turo place a mileage limit on rentals?
You can set a max mileage limit per day or trip when listing your vehicle. Standard limits apply if not specified. Overage fees can be charged.
Can I rent out my leased vehicle?
No, vehicles with outstanding loans or leases cannot be listed on Turo. You must fully own or co-own the vehicle. Turo provides guidance on checking eligibility.
Turo empowers regular vehicle owners to leverage their car assets and availability to earn extra income through an Airbnb-like peer-to-peer model. With robust protections in place for both owners and renters, the platform makes monetizing your car easy and low risk.
Following these best practices for listing, pricing, communicating, and coordinating allows owners to maximize their rental volume, rates, and reviews over time. Tap into the potential of the sharing economy by renting out cars you already own but are underutilized.