Renting your car out on Turo can be a great way to earn extra income. However, Turo does charge various fees that car owners need to be aware of. In this comprehensive guide, we’ll cover everything you need to know about the fees Turo charges owners, so you can make informed decisions about listing your car.
If you’re short on time, here’s a quick answer: Turo charges owners a 15-65% service fee on each trip depending on the vehicle protection plan selected. There are also optional fees like premium listing upgrades, delivery options, and cleaning fees that owners can charge renters.
Turo’s Service Fees
Standard Protection Plan (15% fee)
When listing your car on Turo, you have the option to choose different protection plans for your vehicle. The Standard Protection Plan is the most common choice among car owners. This plan covers physical damage to your car up to its actual cash value and liability protection up to the minimum financial responsibility limits in your state.
With the Standard Protection Plan, Turo charges a 15% fee on the trip price. This fee covers the cost of insurance and other services provided by Turo. It’s important to note that this fee is deducted from the trip price before you receive your earnings as a car owner.
Premium Protection Plan (35% fee)
If you want additional coverage and peace of mind, you can opt for the Premium Protection Plan. This plan offers higher coverage limits and includes coverage for acts of God, theft, and damage caused by pets.
The Premium Protection Plan also includes 24/7 roadside assistance and a replacement vehicle if yours is in the shop for repairs.
Choosing the Premium Protection Plan comes with a higher fee of 35% on the trip price. While this fee is higher than the Standard Protection Plan, it provides added benefits and protection for both you and the renter.
Luxury Protection Plan (65% fee)
For owners of luxury and high-end vehicles, Turo offers the Luxury Protection Plan. This plan provides the highest level of coverage and protection for your valuable asset. It includes all the features of the Premium Protection Plan, but with higher coverage limits and additional benefits.
The Luxury Protection Plan comes with a higher fee of 65% on the trip price. While this fee may seem steep, it reflects the increased value and risk associated with luxury vehicles.
It’s worth noting that the fees mentioned here are subject to change, and it’s always a good idea to check Turo’s website for the most up-to-date information. Turo’s service fees are designed to cover the cost of insurance, support, and other services provided to both car owners and renters, ensuring a smooth and secure experience for all parties involved.
Optional Fees Owners Can Charge
Premium Listing Options
One of the optional fees that Turo car owners can charge is for premium listing options. These options allow owners to highlight their listing and increase its visibility to potential renters. By choosing premium listing options, owners can attract more attention to their vehicles and potentially increase their chances of bookings.
Turo offers different premium options such as “Super Deluxe,” “Featured,” or “Top Placement,” each with its own benefits and pricing structure. To learn more about the specific details and costs of these premium listing options, owners can visit the Turo website at www.turo.com/us/en/list-your-car.
Delivery and Pickup Options
Another fee that Turo car owners can charge is for delivery and pickup options. This allows owners to offer the convenience of delivering the vehicle directly to the renter or picking it up from a designated location.
By providing this extra service, owners can cater to the needs of renters who may not have their own transportation or who prefer the convenience of having the vehicle brought to them. The delivery and pickup fees can vary depending on factors such as distance, location, and the time it takes to deliver or pick up the vehicle.
Owners can set their own rates for this service, ensuring that it aligns with their time and effort. To explore the different delivery and pickup options available on Turo, owners can visit www.turo.com/us/en/car-delivery.
Cleaning fees are another optional charge that Turo car owners can include in their listing. These fees are designed to cover the cost of cleaning the vehicle after it has been rented. While Turo expects renters to return the vehicle in the same condition it was received, including cleanliness, accidents can happen, and some cleaning may be necessary.
By charging a cleaning fee, owners can ensure that the vehicle is returned in an acceptable state and cover any additional cleaning costs incurred. The cleaning fee can vary depending on the size of the vehicle and the effort required to clean it.
Turo provides guidelines for what constitutes reasonable cleaning expectations, and owners can find more information about cleaning fees on the Turo website at support.turo.com/hc/en-us/articles/203990570-Cleaning-policy.
Other Potential Owner Costs
While renting out your car on Turo can be a great way to earn extra income, it’s important for car owners to be aware of the potential costs that may arise. Here are some other expenses that owners should keep in mind:
Tolls and Traffic Violations
When your car is being rented out, there is a possibility that the renter may incur toll charges or receive traffic violations. In most cases, the renter is responsible for paying these fees. However, if the renter fails to pay, you as the owner may be held liable.
It’s a good idea to inform renters about any tolls they may encounter during their rental period and remind them of their responsibility to pay. Additionally, you should regularly check for any traffic violations that may have been incurred while your car was in someone else’s possession.
Damage Not Covered by Protection Plans
Turo offers protection plans for owners that cover certain types of damage to their vehicles. However, it’s important to note that not all types of damage are covered. Owners may be responsible for paying for damages that are not covered by the protection plan.
Before renting out your car, it’s essential to thoroughly read and understand the terms and conditions of the protection plan. This will give you a clear understanding of what is and isn’t covered, and help you make an informed decision about whether or not to proceed with the rental.
Lost Item Return Fees
If a renter accidentally leaves personal belongings in your car and requests their return, you may be responsible for returning those items. Turo provides guidelines for returning lost items, and it’s important to follow these guidelines to ensure a smooth process.
It’s also worth noting that Turo allows owners to charge a lost item return fee. This fee can help offset the time and effort required to locate and return lost items. However, it’s important to handle these situations with care and empathy, as losing personal belongings can be distressing for the renter.
Tips for Maximizing Owner Earnings
Choosing the Right Protection Plan
One important aspect to consider when listing your car on Turo is selecting the right protection plan. Turo offers different plans that provide varying levels of coverage for both you as the owner and the renters.
It’s essential to understand the details of each plan and choose the one that best suits your needs.
For example, the Standard plan offers liability coverage up to the minimum financial responsibility limits required by the state. On the other hand, the Premium plan provides up to $1 million in liability coverage, as well as physical damage protection for your vehicle.
To make an informed decision, take into account factors such as the value of your car, your risk tolerance, and the potential rental income. Consider consulting with an insurance professional to understand the implications of each plan and ensure you have adequate coverage.
Pricing Your Listing Competitively
Setting the right price for your car rental is crucial for maximizing your earnings as a Turo owner. It’s important to find a balance between attracting renters with competitive pricing and ensuring you’re earning a reasonable profit.
Start by researching similar cars in your area to get an idea of the market rates. Take into account factors such as the make, model, year, condition, and amenities of your vehicle. Consider any unique features or extras you offer, such as GPS navigation or child car seats, as these can justify a higher price.
Additionally, take advantage of Turo’s dynamic pricing feature, which automatically adjusts your listing price based on demand and other market factors. This can help you optimize your earnings and ensure you’re not leaving money on the table.
Avoiding Common Renter Damage
While accidents and damages are rare, it’s important to take precautions to minimize the risk of them occurring. By taking proactive measures, you can avoid potential headaches and expenses.
First and foremost, clearly communicate your expectations to renters before they pick up the car. Provide them with a thorough overview of the vehicle, including any existing damages or quirks they should be aware of. Encourage them to ask questions and address any concerns they may have.
Additionally, consider installing tracking devices or dashcams in your car to monitor its usage and discourage reckless driving. These measures can help deter irresponsible behavior and provide evidence in case of any disputes or damages.
Lastly, consider offering add-on services such as roadside assistance or insurance deductibles to further protect yourself and your vehicle. These optional extras can provide peace of mind to both you and the renters.
Remember, happy renters are more likely to take care of your car and leave positive reviews, leading to more bookings and higher earnings in the long run.
Turo’s fee structure allows the company to earn revenue while providing a platform for car owners to rent out their vehicles. As an owner, being aware of the different fees Turo charges as well as optional fees you can set is key to maximizing your rental income.
Focus on pricing competitively, picking the right protection plan, and avoiding damage to minimize your costs. With some savvy decision making, Turo can be a lucrative way to earn extra money from your car.