Making Money On Turo | Our Turo Review 🚗
Today we’re reviewing a fast growing peer-to-peer car rental website called Turo. We’ve heard tons of buzz about entrepreneurial car owners making money on Turo and wanted to learn more about this trending side hustle. If you’re wondering if you can really make money on Turo or curious about the pros & cons of listing your car on the site you’ve come to the right spot. We’ll cover all that and more in our Turo review.
Turo = A Quick Way To Earn Passive Income
When it comes to developing passive income streams, most endeavors require significant upfront effort. From starting a blog to investing your money, you will often have to wait months or years to enjoy any return for your efforts. Making money with Turo doesn’t require that level of patience.
Don’t get me wrong: starting your own business or investing your money are great uses of time and resources.
However, if you want to develop a passive income stream today that actually makes a difference for your finances, you might be better off using some alternative methods.
Thankfully, technology and the rise of the sharing economy has made it easier than ever before to make money. In fact, if you own a vehicle, you are already sitting on a passive income opportunity.
By renting your car on Turo, you can start to earn income from your vehicle every single month without much effort. This ‘AirBnB’ of car rentals has truly created a world of opportunity for anyone looking to diversify their income, and that’s why we’re breaking down this personal car rental platform in this comprehensive Turo review.
If you’ve ever wondered how to make money with Turo or if this platform is worth it, be sure to read our Turo review until the end!
What Is Turo?
When I referred to Turo as being an AirBnB-styled car rental platform, that’s really the most accurate way to describe Turo.
Turo is a leading peer-to-peer marketplace where users can rent or list their vehicles. From Lamborghini’s and luxury cars to basic sedans or trucks, the sheer amount of inventory available on Turo at any given time is impressive.
Since Turo is a peer-to-peer marketplace, both renters and car owners benefit. Renters enjoy competitive prices and a wide variety of vehicles, and car owners can easily monetize an asset they already own without having to register a business or jump through hoops. It’s a win-win.
Let’s get onto the fun stuff of our Turo review. The money! How easy is it to actually earn money with Turo?
Making Money With Turo
The bottom line is that there is real potential for making money on Turo. It’s a sweet little side hustle as it’s not time intensive and can produce some really nice side income. Here are a few things we like about this side hustle:
- Time: It takes less than 15 minutes to list your car on Turo.
- Earnings: You can earn up to 90% of the trip price. Depending on your make and model this could mean $50+ in daily earnings.
- Underutilized Asset: If you’re like most people, your car is sitting idle for a huge part of the day. Turo helps turn an idle asset into a profit producing asset.
This Reddit poster is a good example of what success looks like with Turo. He started with one car and is now looking to expand. As he says, hosting a single car on Turo isn’t going to pay your mortgage but it can be a great way to earn a bit of extra money.
Earning Potential – Turo Car Calculator & Payment Structure
Your earning potential on Turo varies depending on a number of factors:
- Make/model/year: Newer cars and luxury brands will obviously command more money than an old beater
- Frequency: The more days your rent the more days you can earn
- Geography: Each market has different supply, demand, and market prices
- Time of year: Holidays or high season can command higher prices
In our market many cars start at $50/day and go up from there. If you get a few rentals per month you’re looking at a couple hundred dollars of earning potential each month. Not bad!
Vehicle owners are free to set their own listing price or to let Turo automatically assign a rental price based on market data. However, there are some important facts to know about Turo’s payment structure.
How Do You Get Paid With Turo?
Currently, Turo pays car owners via PayPal within 5 days.
Hosts can request reimbursement from renters for items like refueling, cleaning, or excess mileage through Turo’s Reimbursement Tool.
What Fees Does Turo Charge?
Turo charges hosts when they rent a vehicle on the platform. Most commonly vehicle owners earn 65% to 85% of trip prices depending on their vehicle protection package.
It’s possible to earn 90% of trip value if you have commercial rental insurance and you waive Turo’s vehicle protection plans and rely on your own coverage. However, going with your own coverage has it’s own risks and rewards. Users also have to accept this when they choose to rent your vehicle.
Generally, most Turo hosts can expect to earn between 65% to 85% given they don’t carry commercial rental insurance.
The Turo Carculator Helps Estimate Earning Potential
If you’re curious to see if you can make money on Turo with your vehicle, I suggest using their handy ‘carculator.’
The above data is for a 2018 Acura ILX listing in Los Angeles. Put in your own vehicle and location, but keep in mind, your listing price may have to be more competitive to actually book listings.
I really like that the Turo calculator only books your car for a portion of the month. Realistically, if you set a reasonable rental price on your car and secure a handful of bookings each month, you can still make decent money by renting your car on Turo.
Plus, if you live in a major city and can tweak your listing to appeal to more people, earning a few hundred dollars of monthly passive income is not out of the question.
Turo Listing Tips – How to Maximize Earnings
Like any marketplace, anything you can do to make your Turo listing stand out will increase the chance that your car is booked and that you get paid.
There are a few strategies you should keep in mind when creating your listing.
- Remain competitive – don’t just use Turo’s auto-price feature. Do some research and price your car to remain competitive in your market.
- Take professional photos – entice customers with eye-catching photos of your vehicle.
- Offer extras – give customers more power. For added fees, you can allow customers to drive farther, return the car at any fuel level, or return the car without cleaning the interior.
- Provide clear instructions – no one likes getting burned by fees. Ensure that customers are aware of any rules, such as no-smoking rules or pet bans.
Additionally, it’s important to maximize the number of Turo reviews you can get. Reviews influence how cars are listed on the market and also increase your trustworthiness.
Ask your customers for reviews upon the completion of a trip. To improve your listing even more, make an effort to respond to all in-app messaged and rental requests as quickly as possible. Reviews are so important on marketplaces like Turo so make sure you take the extra step to ask for a review from your happy customers.
Earning Money On Turo: The Bottom Line
- Earning potential varies but many hosts report $50+ per day
- Payment is fast and done via PayPal
- A professional listing with nice photos is key to getting bookings and more earnings on Turo
- Reviews are important and your should gently push renters to leave you a review
If you have a car and are interested in making extra money Turo could be a very interesting option for you to check out. But how does Turo actually work and how do you get started with your first rental on the site? That’s what we’ll talk about next in our Turo review.
How Does Turo Work? 5 Steps For Renting Your Car On Turo
Alright, by now we’ve learned there is real money to be made on the car sharing marketplace. But how do you actually get started renting your car on Turo?
If you want to rent your car on Turo, the process is broken down into 5 main steps:
- List your car – create a free listing (describe your car, upload photos, and set availability dates).
- Respond to requests – confirm or deny car rental requests.
- Meet guests – arrange a meeting time with confirmed renters and prep your car for rental.
- Earn – enjoy your new passive income stream each day your car is out on the road.
- Pickup – meet your renter, review your car, and provide a rating for your experience to maintain the integrity of the marketplace.
That’s all there is to it.
Now, there are some important details to cover regarding Turo’s payment structure and vehicle requirements, so let’s take a deeper look!
Listing Your Car
According to Turo, listing your vehicle only takes about 10 minutes.
To get started, you must provide:
- A profile photo.
- Your phone number and driver’s license.
- Car availability.
- Car details and photos.
That’s it. Here is what your listing will look like:
If you want to make some serious cash with Turo, there’s more to it than just putting up a listing. This is a competitive market, after all, and you’ll need to make your listing stand out from the crowd.
However, at it’s core, the actual process for listing your car on Turo is very simple.
Time to examine some specific vehicle requirements and what Turo hosts need to know.
Turo Requirements – What Owners Need to Know
Since we’re talking about vehicles, there’s a fair amount of regulation and terms of services to break down in this Turo review.
If you’re serious about making money with Turo, I suggest you review the following documents and terms a few times. If you don’t comply with Turo’s TOS, your listing can be suspended, so avoid the headache if you can!
Turo Vehicle Requirements
On paper, renting your car with Turo is fairly painless. However, you must follow all Turo car requirements to use their platform.
Here are the main Turo vehicle requirements:
- Type – gas, diesel, hybrid, and electric vehicles that seat eight or fewer people are eligible.
- Make – cars, light trucks, cargo vans, specialty, and classic cars are eligible. No motorcycles, RVs, or specific specialty cars (outlined in Turo’s requirements)
- Exclusivity – if you list you car on Turo, you cannot list it elsewhere.
- Maintenance – ensure your vehicle meets all legal requirements for your region and maintain your vehicle to meet Turo standards.
Failure to adequately maintain your vehicle may result in Turo suspending your listing and issuing a Turo-requested inspection, which involves running your vehicle through a list of safety checks at a mechanic.
In the United States, there are additional vehicle requirements as well. U.S. Turo vehicles must:
- Be registered in any state except New York.
- Be no more than 12 years old (except for specialty vehicles)
- Meet Turo insurance requirements (for personal car insurance not provided by Turo).
- Have a value of up to $150,000.
- Have less than 130,000 miles.
- Not be a branded or salvaged title. Your car must also never have been declared a total loss.
Again, Turo requirements vary by region and country. If you have a car that’s under 12 years old and in good condition you are usually fine, but be sure to review each requirement.
Turo Available Locations
In addition to vehicle requirements, you must also list your vehicle in a marketplace where Turo operates.
If you want to rent your car on Turo, you must live in:
- The United States.
- Canada – Alberta, Ontario, Nova Scotia, or Quebec specifically.
- The U.K.
Commercial hosts can operate in other countries, but you must have commercial insurance coverage. Checkout Turo’s location availability document to see a list of ineligible countries and rules regarding border crossings.
If your vehicle checks all of these boxes, you are officially ready to start making money on Turo!
It doesn’t matter if you’re listing a 10 year old sedan or the latest BMW sports car: protecting your assets is of the utmost importance.
Since Turo operates in several countries, their protection policies can vary. As with vehicle requirements, I suggest taking time to review the terms of service and to review your own car insurance policy.
Do You Need Commercial Insurance To Be A Turo Host?
According to Turo: “Turo is not an insurance company and does not insure Hosts or Guests. Turo does make Protection Plans available to US Hosts and US Guests. All Protection Plans include third-party liability insurance from Liberty Mutual under a policy acquired by Turo via Turo Insurance Agency, LLC, a licensed insurance producer.”
Turo hosts can decline a protection plan and offer guests commercial rental insurance instead. This will allow them to operate in more marketplaces and earn 90% of trip revenue, but most hosts rely on Turo Protection Plans.
Long story short: you don’t need commercial insurance to use Turo. However, you need to pick the right Protection Plan for your level of risk tolerance.
Turo Protection Plans – What’s Covered?
There are three host protection plans available: Premium, Standard, and Basic.
Every plan includes up to $1,000,000 in third party liability insurance. However, plans differ in terms of allocation of financial consequences for vehicle damage and the sorts of headaches that can result if a renter damaging your vehicle.
Here is a broad overview of Turo’s Protection Plans:
Alright, so what does this mean for hosts?
Well, a few points stand out. As you can see, the ‘Basic’ Protection Plan offers a much more lucrative revenue share agreement. However, this plan is not without risk.
Under basic protection, you are mostly on the hook for uninsured costs of repair under $3,750. UIM coverage protects hosts and guests when they suffer losses from an uninsured driver or a hit and run scenario, so keep this in mind.
Additionally, only Premium Protection Plan members are protected against exterior vehicle wear and tear. No hosts are protected from interiors wear and tear. Turo also provides zero coverage for the ‘delivery’ phase of the car rental process (i.e. if you have to drop-off your vehicle for a renter).
Turo Insurance: The Bottom Line
Ultimately, the most important aspect of Turo’s Protection Plans is that hosts are protected with $1,000,000 of liability insurance and uninsured repair costs of up to the lesser value of the vehicle or $125,000.
However, I urge you to read Turo’s host protection plans and terms in great detail.
Most negative Turo reviews result in confusion or disagreements surrounding the protection plans. Therefore, it is imperative that hosts understand the risks of listing their car and what protections they can opt for.
Basic and Standard plans are quite lucrative. As long as hosts are willing to accept wear and tear and the possible loss of car rental income in the event their car is damaged or destroyed, the extra income per trip might be worth it.
Personally, since this is a car rental business, my gut would be to at least opt for the Standard Protection Plan and 70% revenue share agreement. I think most guests are respectful of the things they rent, but the thought of having to shell out money for minor uninsured costs of repair is a bit unnerving. It’s a risk/reward question for hosts. If you’re comfortable with more risk you can potentially reap higher rewards.
Other Apps Like Turo
Turo is one of the leading peer-to-peer car rental marketplaces around. However, as with many other gig economy marketplaces, there’s a fair share of competition.
Some other marketplace apps like Turo include:
- HyreCar – rent your car to ride share/delivery drivers.
- Getaround – a direct competitor to Turo.
- Drive Share – only for classic car rentals.
- Riders Share – Turo but for motorcycles.
Realistically, your two most lucrative options are to rent your car with Turo or Getaround. Other platforms simply lack the volume or have very specific vehicle requirements.
Turo vs. Getaround
Let me start out by saying that Turo and Getaround are incredibly similar.
Both marketplaces are global, and the process of listing your car, renting it out, and getting paid are similar.
Where Getaround shines is in their tech. Upon listing, car owners setup a Getaround Connect device in their vehicle. This system allows renters to access vehicles through the Getaround mobile app and provides enhanced security, so there’s no need to worry about handing off a key or dealing with customers too often.
However, where Getaround falls short is in their pricing structure and payment model.
Getaround charges a 40% commission on every trip. This is far more than Turo where in some cases hosts only pay a 10% commission. Additionally, Getaround hosts must pay a $99 Connect setup fee and $20 monthly subscription fee for the tech side of Getaround. Payments are also sent out once a month, unlike Turo’s 5 day system.
Both Turo and Getaround guests have roadside assistance, and Turo has the added advantage of offering flexible protection plans. In contrast, Getaround provides one cookie-cutter level of coverage.
If the tech side of Getaround appeals to you and you don’t want to deal with customers, Getaround could be for you. Otherwise, I suggest sticking with Turo.
Turo Pros & Cons
It wouldn’t be a true Turo review without breaking down the pros, cons, and testimonials from real users.
- Ability to earn passive income by using an asset you already own.
- Fast 5-day payment schedule.
- Comprehensive protection coverage and industry-leading revenue share agreement.
- Complete control over your listing: set your price, availability, and accept/decline rental requests.
- Renting your car for money isn’t free. You must factor in added mileage, wear and tear, and general depreciation.
- Instability in rental demands can significantly impact your earnings.
- Less protection = less earnings. You may be liable for wear and tear and some uninsured costs of repair if you don’t opt for Premium Protection.
Turo Reviews – What Hosts & Renters Say
Currently, Turo has a 4/5 star review on Trust Pilot, with nearly 6,000 reviews from hosts and users alike.
Generally, anyone renting a car on Turo has a lot to gain. There’s tons of selection, and Turo is generally cheaper than traditional car rental companies, especially if you rent a car for an extended period of time (and take advantage of long-term discounts).
Additionally, Turo also protects renters with liability insurance, offers roadside assistance, and makes the booking process very seamless. Plus, renters know what they’re getting into if they rent from a reputable host who has a detailed listing.
Some friends of mine actually rented out a Toronto Audi when we took a trip down to Montreal for a music festival. Everything went according to plan, right down to the pickup and drop-off process. Being able to drive an Audi for the weekend was also pretty cool since we had never done that.
Now, in terms of making money on Turo, there’s obviously more risk as a host, and this is why reviews can vary dramatically.
Firstly, it is absolutely clear that many people are making great money with Turo. In fact, there are even hosts who purchase several vehicles and operate a mini Turo fleet.
A quick look at this Reddit thread shows you what I mean:
However, there are also cases where Turo hosts have encountered problems. Specifically, having damage claims denied or having troublesome customers that dispute your damage claims can be a nightmare.
If there is one thing about being a Turo host, it’s this: you need to protect yourself.
Renting your car for money is a viable, lucrative way to diversify your income. However, you should take photos before and after your car is used, and you must know your own insurance policy and Turo’s protection policies to a tee.
And, as another Reddit user points out, you really need to detach yourself from your vehicle if you plan on listing your vehicle for an extended period of time.
Who Should Use Turo?
At the end of the day, peer-to-peer car rental is similar to making other investments. There are drawbacks, rewards, and an overall level of risk tolerance that owners must recognize.
Personally, I love the idea of the gig economy and P2P marketplaces. More competition makes life better for users, and platforms like Turo are enabling vehicle owners to monetize an asset they already own.
So who should use Turo?
- You have a car (obviously!)
- Your car has some idle time (weekends, holidays, work week, etc)
- Your willing to put in the time to create a nice listing and provide your drivers with a good experience
You shouldn’t use Turo if you have a deep personal attachment to your car. Additionally, if you don’t understand Turo’s policies or take action to protect yourself (i.e. taking photos of your vehicle), you may incur some unfair repair fees along the way.
However, if you want to build wealth and try out a new investment option, Turo is worth strongly considering.
Unlike starting a business or investing in the stock market, Turo enables owners to start making money almost immediately. Plus, if you are successful with your first listing, you can even invest in additional vehicles to expand your Turo fleet. I don’t know about you, but the idea of earning a few hundred dollars a month in passive income sounds quite enticing.
Turo Review: A (Mostly) Great Way To Earn Extra Money
I hope this Turo review has helped outline the reality behind making money by renting out your car.
To wrap up, let’s sum up our Turo review learnings:
- Overall: Turo is a very compelling way for car owners to make extra money 👍
- Earning Potential: A single car could produce $50+/day in earnings 👍
- Flexibility: Great flexibility for hosts as you can make your car available as much or as little as you wish 👍
- Time Commitment: Listing your vehicle is fast and easy. Managing your listing is quick as well through Turo’s easy to use website 👍
- Watch Outs: Be cognizant of additional wear and tear as that can eat into your profitability. Protect yourself with photos and a good understanding of Turo’s policies. If things do go wrong prepare to have to deal with a potentially frustrating claims process 👎
- Insurance: Turo offers various coverages. Hosts can choose the most conservative option for max protection but realize Turo charges more. While this makes sense taking 35% of a host’s rate feels steep 👎
This side hustle offers plenty of opportunity for car owners to make money on Turo. As long as you protect yourself, optimize your listing, and understand coverage policies, you should be set to make money by renting out your car. There is no obligation for signing up and doing a rental or two and it could be the beginnings of a wonderful side hustle for you. If you’re interested in checking out Turo you can sign to as a host for free right here.
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