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Monthly Archives: September 2016

Why Turo’s insurance model could set a precedent for similar peer-to-peer sharing businesses

Peer-to-peer car sharing service Turo allows Canadians to rent their personal vehicle to others. The car’s owner receives 75% of the rental cost, while Turo takes the remaining 25% fee.

The company seeks to put underutilized cars to better use. It also provides an alternative for those who can’t afford to buy a car. The service launched in Alberta, Ontario and Quebec earlier this April.

Once its insurance model has been straightened out, Turo plans to go national with its services. If all provinces can agree on Turo’s insurance model, it could be a first for peer-to-peer sharing businesses.

Intact Financial Corp. currently has an agreement with Turo where users can be insured through two of Intact’s brands: Intact Insurance and Belair-Direct. Through this deal, all rentals are backed by $2 million in auto liability insurance.

Intact’s insurance model for Turo is similar to arrangements that other Transportation Network Companies have. If a registered car is being driven for personal usage, the owner’s personal insurance is in effect. When the vehicle is being delivered and rented, Intact’s commercial insurance provides coverage.

As the app grows, other insurers are expected to support Turo. In early July, La Capitale General Insurance and its subsidiary, L’Unique General Insurance, showed their support for Turo by allowing customers to use the service.

For more information on your policy’s coverage of Turo and other peer-to-peer car sharing services, contact your insurance broker or company agent.