Anyone Believe the Cybertruck will do well on Turo?

[alan auerbach]

While I like your idea, Insurance is going to be a huge factor for you that I hope you take into account. Also, with FSD being an option, there is going to be a big question mark on how commercial insurance would cover you renting that car to another person who doesnt have experience with FSD and doesnt understand the cases you can and cannot use FSD. From a commercial insurance standpoint, it may actually be viewed as more of a liability, and personally, i would be sure to have a very large policy protecting myself, in that scenario, in case the worst happens. Yes, Turo probably provides some insurance for you, but I would suspect you would want to supplement that in addition. Not trying to rain on your parade, just want to make sure you have considered all expense aspects before making the jump. Good luck in your business venture!!

Listen to Aaron and talk with your insurer and maybe a lawyer.

CT in your name? A renter injures people who win a $10 mill. settlement against you. Turo says no problem, we cover your first $50k. Your insurer tells you to get your policy, turn to Exclusions, and read Par 26 in Clause 32 ....

Advertisement

 

[VolklKatana]

Listen to Aaron and talk with your insurer and maybe a lawyer.

CT in your name? A renter injures people who win a $10 mill. settlement against you. Turo says no problem, we cover your first $50k. Your insurer tells you to get your policy, turn to Exclusions, and read Par 26 in Clause 32 ....

I have worked in the insurance industry and have plenty of friends and family that still do. This scenario has liability written all over it.

 

[Crissa]

You'd have to rent out a truck in pretty egregious condition to be liable.

-Crissa

 

[VolklKatana]

I dont think the condition of the truck matters....the policy follows the vehicle, so if a Turo renter is driving the truck and hits 5 people in a crosswalk, Turo likely covers to a certain dollar amount, after that, it would be on the vehicle's insurance policy. A policy doesnt just cover the vehicle, it covers all the damage the vehicle could possibly do, including but not limited to destroying vehicles, buildings, or covering medical bills for those in or outside the vehicle. As you could see, it's a large risk for an insurance company to cover.

 

[Crissa]

Liability follows the driver, not the car.

I don't know why you think the rental owner would be liable in a standard accident.

-Crissa

 

[VolklKatana]

Liability follows the driver, not the car.

I don't know why you think the rental owner would be liable in a standard accident.

-Crissa

I stand corrected, it does follow the driver, but I would not trust an average renter on Turo to make sure they have enough insurance prior to getting in my vehicle

Anytime you give someone permission to use the vehicle though, your insurance is still on the hook as they are a permissive driver. https://www.policygenius.com/auto-insurance/when-someone-else-causes-an-accident-with-your-car/#when-its-a-permissive-driver:~:text=When%20it%E2%80%99s%20a%20permissive%20driver,car%20with%20them%20at%20the%20time.

like alan auerbach said above, its really important to talk to only your insurance company, but also a lawyer as the insurance company is going to try and find any reason they can not to pay the claim. Its best to have as many scenarios covered and discussed so you know what your exposures are as the vehicle owner

 

[T3slaDad]

Turo is very market-driven. If you live in popular urban cities, this could be a good. Where I live, anyone with the latest Tesla rented out is constantly booked at $300-400/day for the first 6 months until others saturate the market. Then, it slowly tapers down toward the $100/day mark over the next 6-8 months.

I believe CT will have more demand in these areas than any other Tesla, specifically for that extra wow factor of the car. It's so controversial, everyone will get their hands on it to see what the hubub is all about!

But small markets? I'm not sure. The law of supply and demand always wins.

 

[OneLapper]

Liability follows the driver, not the car.

I don't know why you think the rental owner would be liable in a standard accident.

-Crissa

Not sure it's apples to apples, but I lease vehicles. Commercial insurance is very expensive and VERY specific. I have one vehicle that the insurance costs $19k a year, and each driver has a background and drivers licence approval process. And I say "commercial" insurance because any other insurance almost always specifically disallow "for revenue" use or service.

I would think the victim's lawyers are going to go after the business owner, as well as the driver. But since the driver is just someone that rented a car for $200, they are not likely to have deep pockets. Therefore, the lawyers will spend 50% of the victims' winnings on trying to show the vehicle owner was at fault, not the driver. And for all we know, the vehicle could be at fault, proving the driver was also a victim.

Turo may offer insurances, but that is most like the state minimum. I'd want a $10m umbrella at a minimum. $50m ideally. And wait till you see the cost on that.

Also, don't underestimate how much time and energy it is to clean 12 CTs every day! Especially if Covid is still a thing. I charge a cleaning fee at the end of lease.

 

[Crissa]

Commercial vehicle insurance is different because the driver won't be driving of their own direction. So you as employer are also liable. Commercial vehicles tend to be more expensive, heavier, so do more damage.

-Crissa

 

[OneLapper]

like alan auerbach said above, its really important to talk to only your insurance company, but also a lawyer as the insurance company is going to try and find any reason they can not to pay the claim. Its best to have as many scenarios covered and discussed so you know what your exposures are as the vehicle owner

I had a small claim against a business last year. Their business insurance spent 9 months denying the claim even though I had a VIDEO of the incident, clearly and plainly showing their employee doing the damage to my vehicle. Eventually I won the claim but it took almost a year to see the money.

 

[OneLapper]

Commercial vehicle insurance is different because the driver won't be driving of their own direction. So you as employer are also liable. Commercial vehicles tend to be more expensive, heavier, so do more damage.

-Crissa

Insurance is difficult. Since the vehicle is leased it's not under my direction, but the insurance is specifically for this type of business. But sufficient to say, I agree, it's a different animal. The warning is still valid, there are people and companies that want to separate you from your money. And house. And take a percentage of your future earnings.

 

[Roland Mills]

No one will want to rent anything else! Can you imagine a vehicle that handles like a sports car, drives you there while you sleep, has air conditioning available in the bed for sleeping, advanced independent air suspension so the road always feels smooth, it’s bulletproof, has hospital grade air filter ration, And looks amazing and turns heads everywhere you go. I think people would pay 200+ a day for that!

You hit the nail right on the head! i can't imagine anything but success ESPECIALLY the first year the Cybertruck hits the streets. I just Hope the Robotaxi Network gets up and running shortly after!

 

[Roland Mills]

My sister won't. Can't stand the look of the CT. She just went out and bought a Ford to tow her new camper. She might be willing to switch over to a Rivian next but she is very much against the CT right now.

I do think there is a strong market for CTs on Turo once the CT starts to become available. But the price will be somewhat similar to what the other Tesla's are going for. Most people on Turo are looking for a different experience and are willing to pay a premium for a Tesla. But there is going to be an upper limit. The first few CTs available might get $200 a day. But once they are more widely available the price will drop to more affordable levels because those with the means to pay $200 will also have the means to just buy one outright if its really the vehicle for them.

Just my thoughts though. I'm not an economist.

I don't know. I feel those who think its hideous will be very compelled to try it out. If anything just to confirm their bias. I believe their opinions might become changed in the experience though.

 

[Roland Mills]

Ultimate test drive. Lot's of people will be interested in seeing what all the talk is about. It's a way to get your feet wet without diving into the deep in.

I agree 100%! In fact ,there will be millions of people who didnt pre-order a cybertruck but were curious who will jump at the chance to try one out. That will lead to more Cybertruck purchases which ultimately means an increase in Tesla stock... either way, i'll make money

 

[Roland Mills]

I agree that many will want that. But maybe not at $200. Those who are willing to wait can talk to CT drivers they meet in day-to-day life. Or wait till their friend gets one and gives them a ride. Or meet a CT owner “out on the trail” and watch its performance in comparison to their own rig while caravanning.

Those who are not willing to wait will most likely already have an order in. At that point it will be a question of if they can afford it or not.

Fair point. We'll just have to see. I still believe it can get a $350 daily rate. People love things that are new and rare, even when they consider them ugly. Production constraints will keep the Cybertruck fairly rare for the first few years at least.