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Knowing whether you should start a side income and whether it will be worth your time could be challenging. Regarding the car sharing industry, Turo is a famous company that connects hosts to drivers who need to use vehicles on their own terms. Why is Turo a good way to make some extra money?
7 Reasons Why Turo Is A Good Way To Make Money:
- Listing A Car On Turo Is Easy
- Turo Accepts Most Vehicles
- Hosts Set Up Their Own Rates
- The Income Is Largely Passive
- Turo Allows Hosts To Keep Up To 90% Of Gross Bookings
- Hosts Can Accept And Schedule Bookings
- Turo Has Good Insurance Plans
1. Listing A Car On Turo Is Easy
Suppose you want to list your vehicle on Turo and become a host. In that case, it's as easy as signing up and listing your vehicle with high-quality photos and a detailed description of the needed info.
Listing your car on Turo is free of charge and, according to Turo's website, should take approximately ten minutes to complete.
2. Turo Accepts Most Vehicles
Turo's standards for vehicles are reasonably lenient. However, your car needs relatively low mileage and should be in good condition.
Beyond these two considerations, you won't have to be concerned about jumping through too many hoops and going through too much paperwork.
3. Hosts Set Up Their Own Rates
Turo knows that determining the ideal price for your vehicle could be challenging, and if your prices are too high, you may have trouble finding renters and bookings. If the price is too low, you could get constant renters, but you may lose some of your profit.
This is why Turo automatically sets a price for their hosts after considering your location and the type of car you're listing.
This automatic pricing feature constantly adjusts to help the hosts maximize their earnings, but you can turn the feature off to adjust your rates.
You can set up your vehicle's availability and conduct your own rules for renters, such as limiting how far the renter may drive.
You can also charge delivery fees, set up specific discounts for renters, and charge an excess distance fee.
4. The Income Is Largely Passive
Although Turo is mainly regarded as a passive form of income to hosts, some hands-on work is required at times. Turo is not a 100% passive investment, as hosts have specific responsibilities.
Each host is responsible for actively communicating with potential renters, ensuring your listing remains updated and accurate, and you need to maintain your vehicle.
Maintaining your vehicle includes additional responsibilities such as cleaning, refueling, and other minor maintenance work.
However, considering all these responsibilities, Turo is still not as labor-intensive as other additional forms of income, such as delivering for DoorDash and driving for Uber.
If you're wondering about the income, Turo states that the average car owner located in the U.S can earn $500 or more each month. The average owner in the U.S who decides to list more than three vehicles could earn over $3,000 per month.
This is a lot considering Turo is a largely passive income.
However, it may be good to keep in mind that your overall earnings will vary depending on your area's demand for car rentals and the type of car you list.
5. Turo Allows Hosts To Keep Up To 90% Of Gross Bookings
Turo has many plans, including their 90 Plan. Turo's 90 Plan allows its hosts to keep 90% of their gross bookings.
However, if you go with this specific plan as a host, you will need to accept a higher insurance deductible, but if your top priority is to make as much profit as possible, it may be a bet you'll be willing to make!
6. Hosts Can Accept And Schedule Bookings
As a host, another responsibility would be to accept bookings and schedule the pick-up. After a renter has confirmed, you will need to communicate with them regarding where you will meet to give them the keys and drop off the car.
You will then need to arrange where to pick up the car once the trip ends. You can also opt for in-person or contactless checkouts and check-ins.
If you're unhappy with the renter or have doubts about their driving record, you can decline the booking.
7. Turo Has Good Insurance Plans
Turo offers their hosts five different auto insurance plans to choose from. Each insurance plan comes with up to $750,000 in liability insurance through Liberty Mutual.
Having liability insurance will cover you as the host if a renter causes damage to your vehicle and if any bodily damage should occur to someone else while the renter is behind the wheel.
Under each plan, Turo offers their hosts a reimbursement of 100% of repair costs that exceed the car insurance deductible if your vehicle incurs any physical damages during a rental trip.
Some of Turo's higher insurance coverage plans also include reimbursements for lost wages and general wear and tear that comes with renting a car.
Generally, a host will earn between 60% and 85% of their trip price, depending on the insurance plan they decide on. If a host chooses an insurance plan with a higher deductible, the host can pocket a much higher percentage of the car's rental earnings.
However, if the host's vehicle gets damaged during a Turo rental, it also means the host becomes responsible for paying a higher fee for car repairs before Turo reimburses them.
However, if you're in the car rental service industry and already have commercial rental insurance, you can opt out of Turo's insurance plans.
According to Turo, if a host does not use their insurance plans, it means they could earn 92.5% of their trip price; what a great way to make money!