Recent News
Reports are coming in that an explosion happened right in front of Trump Tower in Las Vegas, NV. The explosion was inside a Tesla Cybertruck, rented through Turo, with an individual inside that ended his own life right before detonation. Here at KAASS LAW, we do not condone violence and or or any act of terrorism. This type of event is tragic, and his behavior is unacceptable in our society, and anywhere else. While this unfortunate event occurred, the real focus is the nature of car owners and the proper safety measures.
The Tesla truck that exploded was under Turo, a peer-to-peer car-sharing company that allows car owners to rent out their vehicles to others. It operates as an online marketplace. People can list their personal cars for rent, and others can search. For those who are not familiar with Turo and its coverage, the following will discuss their policies and bring awareness for anyone using that company.
Terminology
Turo has defined certain terms that declare the exact meaning to avoid any vague and ambiguous interpretation. If a vehicle is to be damaged, the vehicle has to sustain some type of harm, including mechanical damage and interior damage that would impair its value, usefulness and or normal functions. Guest refers to the primary person that is tied to the trip booking. They also use it to refer to any additional drivers authorized. Interior damage would consist of abuse or misuse of the interior of the vehicle by the guest.
Mechanical damage would fall under the guest’s negligence and or intentional misuse of the vehicle. Mechanical failure would mean any mechanical, electrical, suspension, engine, or transmission. This can happen due to age, wear and tear, defect, lack of maintenance, or warranty issue. Which therefore, any resulting damage or resulting fire that arises due to those causes. Vehicle refers to the vehicle booked during the applicable reservation period. Anything that falls under related costs resulting from damage to the vehicle during the booked trip. Cost and fees include, but not limited to:
- Claims processing costs and all similar or associated costs, minus any residual salvage value upon collection
- Estimation or appraisal costs
- Registrations or transfers taxes
- Repairs or replacements costs
- Storage fees
- Towing fees
Third-party coverage
All Turo trips include coverage under a third-party liability insurance policy issued to Turo from Travelers Excess and Surplus Lines Company (“Travelers”). The Travelers policy provides secondary (excess) coverage, to ensure that any Turo approved driver will be insured up to the state minimum limits required for third-party liability, unless primary coverage is explicitly required by an applicable state statute (e.g., Maryland and New York). Claims made to Travelers are handled by their partner Constitution State Services. You may receive communication from Constitution State Services regarding a filed claim.
Bodily injury and property damage to third parties
The Travelers policy insures Guests against liability to third parties for bodily injury and third party property damage resulting from the use of the booked vehicle during the booked trip. Coverage provided is up to the minimum liability coverage required by state law. Guests can’t decline this coverage.
Personal Injury Protection (“PIP” ):
- The Travelers policy provides the minimum amount of PIP coverage allowed by law in those states where PIP coverage is required and can’t be waived.
- The scope of PIP coverage varies by state. It typically protects Guests and passengers (up to a stated dollar amount) for:
- medical expenses
- loss of income
- funeral expenses
- similar expenses resulting from injuries incurred during the use of the booked vehicle during the booked trip
- Coverage is provided regardless of who was at fault.
- Turo has either waived this coverage entirely or subscribed to the lowest limit allowable by state law. Hosts and Guests are bound by Turo’s election and agree to be bound by that election under the Terms of Service.
- The attached files include specific elections, rejections, and waivers for each state, and is incorporated by reference and made a part of the Terms of Service.
Uninsured or Underinsured Motorist (“UM/UIM” ):
- The Travelers policy includes the statutory minimum amount of UM/UIM coverage in those states where UM/UIM coverage by law.
- UM/UIM coverage, when available, protects Guests and passengers from losses resulting from bodily injury caused by:
- an uninsured driver
- a hit and run driver
- a driver whose limits of liability have been exhausted
- a driver whose insurer is insolvent while in the booked vehicle during the booked trip
- Turo has either waived this coverage entirely or subscribed to the lowest limit allowable by state law. Hosts and Guests are bound by Turo’s election and agree to be bound by that election pursuant to the Terms of Service.
Learn More
The explosion of the Tesla Cyber Truck is a stark reminder that car ownership, and by extension, car rentals, comes with major risks. Turo’s has more extended coverage that is worth looking into for anyone interested. Here at KAASS LAW, we want everyone to know and advise anyone not to commit wrongdoing upon themselves and our society. We want the best in people to do the right thing and not take advantage of the matter. If you are a victim of a personal injury that is relevant to an auto-mobile accident through Turo, please contact us today! Our office knows how to reach the proper channel with Turo.