My favorite types of side hustles are the ones that require the smallest amount of work. Renting items is always a great income stream that can be categorized as semi-passive.
I was recently introduced to a company called Turo that lets car owners rent out their cars for extra cash. It’s a neat concept and if you have a vehicle that sits around much this could potentially be a good earning opportunity for you.
This is one of the best potential mailbox money ideas. It lets you take something you have and don't use all the time (because, we really don't), and it lets you earn on your own terms.
Check out our Turo review here and try it out for yourself.
Quick Summary
- Turo is a car sharing service where you can get paid to rent your car
- Great side hustle potential, especially if you have a limited use car
- Allows you to rent more exotic cars
How Turo Works
Turo, formerly RelayRides, is a car sharing company that allows people needing to rent a vehicle to do so through their peers who have listed their vehicles for rent on the Turo website.
The appeal of Turo is that those wanting to rent cars can browse the listings and find exactly what they need at the price they want. And those listing their car can make a profit.
There are some basics guidelines to list your car on Turo. The types of cars accepted are:
- 2006 or newer
- Less than 130,000 miles
- Clean title
- Legally registered in the United States (except New York)
Vehicles that are older than 2006 or have more than 130,000 miles but that are in excellent condition may also be listed with Turo.
You can list your car for free by filling in basic information about your vehicle, uploading photos and setting your rates. If someone decides to rent your car they can pick it up from your driveway or you can earn extra cash by meeting them at their preferred location. Turo makes their money by taking a percentage of the rental or “trip” fee.
If you’re worried about insurance and the safety of your car the fact that Turo provides up to a million dollars in coverage and prescreens renters should help ease your mind.
How Much Can You Earn with Turo?
The amount you can earn will vary depending on several factors. (Although the Turo website states you can earn up to $1,000/month.)
First off, the make and model of your car is going to help determine the rental rate you can pull in. Other factors include the demand for rental cars in your city (bigger cities and tourist areas will have a higher demand) and how many days per month you’re willing to rent.
Other things like the willingness to meet a renter at an airport and how fast you respond to customers can also make a big impact.
They also have fun programs, like the Porsche host program that allows unique car owners the ability to earn more, and allows renters to ride in a great car.
Right now Turo has a bonus of 25% (up to $100) of trips you approve within the first 60 days of listing your vehicle.
The percentage of the trip price you keep will depend upon the level of coverage you choose for your car. The amount you’ll profit will be in the range of 65-85% of the trip price.
Turo Car Insurance
It's important to note that both hosts (i.e. those renting the car) and guests (i.e. the renter) must carry insurance. If you're a host, your personal car insurance policy will not likely cover any damaged incurred while the car was rented. That's because your personal policy is designed for personal use - not for using your car as a service. In fact, in most states, you car insurance company can drop you if they discover you're listing your car on Turo.
However, for guests, many insurance policies (and even credit cards) cover rental car usage.
Car Insurance Options For Hosts
Turo has three levels of insurance options for hosts:
- Basic
- Standard
- Platinum
These insurance options are provided by Liberty Mutual. They all three offer $1,000,000 of liability protection and up to $125,000 in physical damage protection. The difference in the plans is how much you pay - both on what you're charged per trip, and also what you have to pay towards the deductible.
Basic: With the basic plan, you get to keep the most money each trip - you only pay 15% of your total trip to Turo. However, if there is an accident or claim, you'll have to pay 80% of the $3,000 deductible. You also don't get a replacement vehicle while the car is being repaired, or wear and tear coverage.
Standard: With the standard plan, you pay 25% of your trip to Turo. However, if there is a claim, Turo will cover the full cost of the deductible. You also get replacement vehicle coverage while your car is being repaired.
Platinum: With platinum, you pay 35% of your trip to Turo. However, this level of service also includes wear and tear coverage, as well as loss of income while your vehicle is being repaired.
Car Insurance Options For Guests
If you're renting a car on Turo, you also need insurance. It's important to note that Turo offers every user the state minimum in liability insurance when you rent a vehicle. If you "Decline" Turo's insurance offers, you're declining additional protections.
Before you consider Turo insurance options, you should know if your personal car insurance policy covers you. You want to look for a "Non-Owner Vehicle Coverage" section in your policy. Many comprehensive insurance policies offer this. You can also look at our guide to car insurance to learn more.
Also, some credit cards offer a "Loss Damage Waiver" for rental cars (especially high end cards like American Express or Chase). However, some of these may not include peer-to-peer car services like Turo, so you need to check.
With that being said, you can opt to buy insurance from Turo. They offer three plans:
Minimum: This plan includes the state minimum liability coverage, but also covers you if the car is damaged or stolen. This plan includes a $3,000 deductible, and costs 15% to 25% of the trip cost (varies by location and vehicle type).
Standard: This plan includes $1,000,000 in liability coverage, and has a $500 deductible if the car is damaged or stolen. This plan costs 40% of the trip price.
Premier: This plan includes $1,000,000 in liability coverage, and has no deductible if the car is damaged or stolen. It also includes flat tire coverage to help you. This plan costs 60% of the trip price.
Turo Alternatives
The one major alternative to Turo right now is called Getaround.
Getaround is a platform extremely similar to Turo, where you can list your car and start making money with it. It also allows users to rent on the platform, and provides insurance while your car is being rented.
The big limiting factor on Getaround is that it is currently only in a handful of cities right now.
Another start-up called Maven tried to get off the ground, with a focus on just GM vehicles, but it is stalled at the moment.
How to Get Started
If you’re interested in renting out your car you can visit Turo to get more information and list your car for free. From there you can fill out your vehicle’s availability, price and other details.
Hopefully this Turo review showed you how it's possible to make money renting your car. For more inspiration, check out this review where the owners have three cars and fully pay for their rides on Turo -> Side Hustle Nation.
If you try listing with Turo come back and let us know about your experience.
Turo Review
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Summary
Turo is a peer-to-peer car-sharing service that allows you to list your car for others to rent. It allows you to earn extra money from your vehicle while you’re not using it.
Pros
- Easily list your car to make extra money when you’re not using it
- Turo provides insurance and takes of all the transactions
- Higher-income potential for unique cars
Cons
- Does require some work and coordination to deliver and pick up vehicles
- Depending on your market, you may not have high volume
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.