The parts for my C8 Corvette are on backorder. The body shop says it will be sitting there for at least 8 weeks. I have a $1,400 monthly car note and insurance to pay. I assumed Turo would cover the lost revenue while the car was unrentable. I was wrong. I checked my plan, and my “Loss of Income” payout is exactly $0.
Key Takeaways
- Standard Plans Pay Zero: The Turo 75, 80, 85, and 90 plans have NO Loss of Income (LOI) coverage.
- The 60 Plan is the Holy Grail (for LOI): Only the most expensive plan (taking 40% of earnings) covers LOI.
- Commercial Policies Might Cover It: If you have Business Interruption insurance on a fleet policy, that is your backup.
- Proof of Earnings Required: Even if you have coverage, they pay based on average earnings, not potential earnings.
The “Why”: The “Active Income” Model
Turo treats your car as a gig economy asset. If it’s not working, it’s not earning. They do not want to incentivize hosts to keep cars in the shop longer than necessary.
Therefore, they strip LOI from almost every plan to force hosts to get the car back on the road ASAP.
The Investigation: Calculating the Payout
I looked at the math for a host on the 60 Plan vs. the 75 Plan.
- Scenario: Car generates $1,000/month avg. Repair takes 30 days.
- 75 Plan Host: Receives $0 for downtime. Net loss: $1,400 (car note).
- 60 Plan Host: Turo pays based on the last 60 days of earnings.
- Calculation: (Total earnings last 60 days / 60) * Days in shop.
- Result: Receives approx $1,000.
- The Trade-off: The 60 plan takes 40% of every trip. You have to calculate if paying that extra 15% commission all year is worth the safety net.
Comparison: Loss of Income Coverage
| Plan | Host Share | Loss of Income Coverage? | Deductible |
| 90 Plan | 90% | NO | $2,500 |
| 75 Plan | 75% | NO | $250 |
| 60 Plan | 60% | YES | $0 |
| Lula (Commercial) | 100% (minus premium) | Optional (Add-on) | Varies |
[IMAGE: A graph showing the “Breakeven Analysis” of when it makes sense to switch to the 60 plan based on vehicle reliability and parts availability]
Step-by-Step Action Plan
- Assess “Parts Risk”: If you have a rare car (Corvette, Rivian, Cybertruck) where parts take months, you need LOI coverage. Switch to the 60 plan or get commercial insurance.
- Document “Unavailability”: You need a letter from the body shop stating: “Parts on backorder. Vehicle cannot be released.”
- File the LOI Claim: This is separate from the damage claim. You submit it after the repairs are finished.
- Mitigate the Loss: If the car is drivable but just has cosmetic damage, keep renting it until the parts arrive. Do not let it sit in the shop yard if it’s safe to drive.
FAQ
Can I claim Loss of Income from the guest’s personal insurance?
Sometimes. If the guest has Geico/Allstate and they accept liability, you can demand “Loss of Use.” However, they will fight you and demand fleet utilization logs.
Does Turo pay for the weekend rates or just average?
They pay the average daily rate over the last 60 days. If you only rent on weekends, your average will be lower.
What if I just listed the car and have no earnings history?
Then you get paid nothing. LOI is based on actual past earnings, not projected ones.