I have 5 cars on Turo. I started getting repeat customers asking, “Can I just rent from you directly and save the Turo fees?” I wanted to say yes, but I knew my personal insurance would deny me. Enter Lula (and competitors like GMI). They promise “Commercial Rental Insurance” that lets me rent off-app. But at $1,500/month for my fleet, is it actually profitable?
Key Takeaways
- The “Off-Platform” Freedom: Commercial insurance allows you to rent directly to customers (Direct Rentals), bypassing Turo’s 10-40% cut.
- The Cost Barrier: It is expensive. Expect to pay
120−120−300 per car, per month, regardless of whether it rents. - Strict Underwriting: They verify your driving record and often require you to be an LLC with 3+ cars.
- Usage Based vs. Flat Rate: Lula popularized “pay per day” models, but in 2026, many carriers are moving back to flat monthly rates due to risk.
The “Why”: The Middleman Problem
Turo takes a huge cut (up to 40% on the 60 plan).
If you rent a car for $100/day:
- On Turo (60 Plan): You keep $60.
- Direct (Commercial Insurance): You keep $100 (minus credit card fees and insurance cost).
The math works if you have high utilization.
The Investigation: The Math Test
I modeled a fleet of 3 Toyota Camrys.
- Scenario A: Turo Only (75 Plan)
- Gross: $4,500/mo.
- Turo Fees (25%): -$1,125.
- Net: $3,375.
- Scenario B: Direct Rental (Lula/GMI)
- Gross: $4,500/mo.
- Insurance Cost (
150/car):−150/car):−450. - Software (Rental Software): -$100.
- Net: $3,950.
- Verdict: You make $575 more per month if you can find the customers yourself without Turo’s marketing.
Comparison: Turo vs. Private Fleet
| Feature | Turo | Private Fleet (Lula/etc) |
| Customer Acquisition | Done for you (Huge traffic) | You (Marketing required) |
| Insurance Cost | % of Trip (No trip, no cost) | Fixed Monthly (High risk) |
| Control | Turo sets rules | You set rules |
| Age Limit | Turo decides (usually 21+) | You decide (usually 25+) |
[IMAGE: Screenshot of a Lula/GMI policy dashboard showing “Active Vehicles” and the “Add a Rental” button for off-platform trips]
Step-by-Step Action Plan
- Get an EIN and LLC: You cannot get this insurance as a sole proprietor efficiently.
- Quote the Fleet: Contact Lula, GMI, or ABI. You need at least 3 cars usually.
- Buy Rental Software: You need a system to take bookings and credit cards (e.g., HQ Rental Software, Carsync – if active).
- Start with “Hybrids”: Keep the cars on Turo for new customers, but hand your business card to repeat guests for “Direct Booking Next Time.”
FAQ
Can I use Lula for Turo trips too?
Yes. This is the “Off-Rent” coverage. When the car is on Turo, Turo covers it. When it’s off Turo, Lula covers it.
Do I need a rental car license?
In some states (like Florida or California), yes. You may need a specific business license to operate a rental car company.
What about the $1,000 deductible?
Commercial policies have high deductibles. You must collect a security deposit from your direct private guests to cover this.