There has been a lot of media speculation following the tragic Boston accident that occurred in February 2012, involving a car rented through Turo (then RelayRides). Many pointed to that accident as a prime example of the risks surrounding the sharing economy. Others speculated that the insurance provided by Turo may not provide adequate coverage. Some wondered about the liability incurred by owners in case of catastrophic accidents.
The case has settled within the insurance limits, and while we are legally restricted from sharing details, I am pleased to report that our insurance worked exactly as designed, protecting both the owner and traveler.
Looking ahead, Turo will continue to provide a car rental marketplace that is better protected and better insured than the general transportation marketplace.
Let me illustrate how Turo is actually better protected and better insured.
Turo is better protected
All travelers in the Turo marketplace are insured with at least the minimum liability coverage of the state where they are located, unlike the general driver population, which can frequently be uninsured. In fact, an estimated 14% of licensed drivers, or roughly 29 million drivers, are uninsured nationwide, compared with zero at Turo.
Turo is better insured
Turo owners are provided with $1 million of insurance, which is many times more than typical insurance covers and up to 20 times more than all state-mandated minimums, meaning they are typically better covered when their car is being driven in the Turo marketplace than when they are driving their car themselves.
While accidents are a sad reality in transportation, we want people to know that we remain committed to offering a transportation marketplace that sets the standard for transportation safety. After more than one million rental days completed on trips through the Turo marketplace, our industry-leading trust and safety protections have worked as they were designed.
Moving forward, we will continue to make safety one of our highest priorities.
Updated June 8, 2016