So you’re asking, “is turo currently in a law suit?”
Well, the short answer is… yeah. It’s almost a better question to ask when arent they in some kind of legal fight. It’s not really like one single giant lawsuit that defines them, but more like a constant stream of legal battles and problems. It’s just part of there business model.
To really get it, you have to understand what Turo is, or at least what they say they are.
Turo’s whole argument, in pretty much every lawsuet, is that they are not a rental car company. They say they are just a “peer-to-peer” tech platform. You know, like Airbnb is for houses or eBay is for stuff. They just connect people who have cars (hosts) with people who want to rent them (guests). They dont own any cars themselves.
This is a really important distinction for them. Becuase if they aren’t a rental car company, then they dont have to follow all the rules, pay all the taxes, or get all the permits that companies like Hertz, Avis, or Enterprise do. And that, right there, is where all the lawsuits come from.
Everybody else, from airports to city goverments to people who get in accidents, looks at Turo and says “wait a minute… you’re renting out cars. You’re a rental car company.”
This whole thing is so messy that Turo actually had to cancel its IPO back in February 2025. They were all set to go public and make a ton of money, but they pulled the plug. Why? Well, the market was bad, but also probebly becuase of slowing growth and “reputational damage” from some really bad incidents, including cars on their platform being used in crimes. Investors looked at this legal mess and likely got cold feet. And their main competitor, Getaround, just totally shut down its US operations. It’s not a good sign for this kind of business.
So yeah, they’re in lawsuits. Let’s break down what kinds of trouble they’re actually in.
The Biggest Fight: Turo vs. The Airports
This is probably the biggest and most expensive fight they have. It’s been going on for years and it’s at the core of their business.
Think about it. When you go to an airport, you see all those counters for the big rental car companies. Those companys pay millions of dollars to the airport every year for the right to be there. They pay “concession fees” which is basically rent for their counters, their parking spots, and for using the airport roads to shuttle people around.
Then Turo comes along.
People on Turo are doing the exact same thing. Hosts are dropping off cars at the airport terminal. Guests are picking them up right at the curb. They are using the same roads and facilities as Hertz and Avis.
But Turo’s argument is, “Hey, we dont have to pay those millions in fees! We’re not a rental company. That’s just a ‘guest’ meeting a ‘host’ who is a friend.”
The airports are, to put it lightly, not buying it.
Airports all over the country, from San Francisco (SFO) to Los Angeles (LAX) to Boston (Logan) and Tampa, have been in legal battles with Turo for years. They are suing Turo to force them to get permits and pay the same fees as everyone else. The airports argue that Turo is getting an unfair advantage by dodging these costs, and it’s costing the airports millions in revenue that they use to, you know, run the airport.
Turo has actually won some of these and lost some of them. In 2022, a California court said that Turo wasnt a rental car company under that specific law, which was a huge win for Turo. But the battle is far from over. Airports are still fighting them, trying to close these legal loopholes.
This matters to you becuase if Turo eventually loses this war, they’re going to have to start paying these massive fees. And where do you think that cost is going to go? Yup. Right onto your bill.
The Customer Lawsuits: Fees, Fights, and Failures
Okay, so the airport fight is the big corporate one. But what about normal people? Oh yeah, they’re suing too.
Just in September 2024, a class action lawsuit was filed against Turo. This one claims that Turo is basically refusing to participate in the arbitration process. Arbitration is like a mini-court that’s supposed to solve disputes. The lawsuit says that customers who have a problem with Turo are trying to file for arbitration (like Turo’s own rules say to do), and Turo just… ghosts them. They dont respond, they dont show up. So the customers are stuck.
This tracks with the thousands of complaints you can find online. The Better Business Bureau (BBB) has over 2,400 complaints against Turo in the last three years alone. And some of them are nightmares.
There was one from just this month, October 2025. A person rented a car. Three weeks into the rental, the car just dies. They call the host, the host tells them to call Turo. They call Turo. Turo tells them to jump the battery themselves and call back. So they find someone to help jump it, it doesnt work. They call Turo back. Turo says a tow truck will be there in 90 minutes.
Three hours later, the tow truck shows up.
The tow truck driver takes the car. The host then calls the guest, yelling at them because they didnt want the car towed to that specific dealership. The guest, who is just the renter, is stuck in the middle. Then they try to get a replacement car from Turo, and customer service says the system is “down” and they cant help. They called four times. Same answer.
Finally, the guest just gives up and rents another car on Turo themselves, which ends up costing them more money.
This is the kind of stuff that leads to lawsuits. It’s not just one big case, it’s a thousand small ones where people feel ripped off. There have been other class actions in the past that Turo settled.
- “Drip Pricing” Lawsuit: They got sued in Quebec (and settled) for “drip pricing.” That’s when they advertise a car for one price, like $43 a day, but then by the time you check out, they’ve added a mandatory “trip fee” and other charges so the price is way higher.
- “Bogus Fees” Lawsuit: They got sued for charging “bogus” $75 “appraisal” or “processing” fees when a host claimed there was damage. The lawsuit said these fees were just made up and didnt relate to any real cost. They settled that one too.
So, when you ask if they’re in a lawsuit, the answer is yes. They are in lawsuits with giant airports, and they are in lawsuits with their own customers over shady fees and terrible service.
The Scariest Part: What Happens When You Crash?
This is the one that really matters. The airport fees are whatever, but what happens when there’s a serious accident? A crash. Injuries. Or worse.
This is where Turo’s “we’re just a platform” thing gets really, really scary.
When you rent from Hertz, you know they have a massive commercial insurance policy. It’s simple. You get in a wreck, their insurance handles it.
With Turo, it’s a legal black hole. There are three parties involved, and everyone is pointing fingers:
- The Renter (Guest): You might have your own personal car insurance. But here’s the kicker: many personal insurance policies will not cover you when you’re driving a Turo. They see it as a “peer-to-peer” rental, which is excluded from many policies. You have to check the fine print.
- The Owner (Host): This is the person who owns the car. Their personal insurance is 100% void the second they rent their car on Turo. All personal insurance policies have a “commercial use exclusion.” If your insurance company finds out you’re hosting on Turo, they will deny your claim and probebly drop your policy immediately.
- Turo: So, Turo offers its own “protection plans.” Notice they dont call it “insurance.” They are very careful about this. It’s a “plan” provided through a third-party insurer, like Travelers. But this plan is full of loopholes.
Turo’s protection plan has a Terms of Service (TOS) document that’s super long. If you, as a renter, or the host, violate any part of that TOS, Turo can deny the claim.
- Did you drive on a gravel road that wasn’t “maintained”? Claim denied.
- Were you one minute late picking up the car? Claim denied.
- Did the host fail to get a “required” inspection? Claim denied.
There’s a reason why there are so many law firms out there with entire web pages dedicated to “Turo Accident Lawyer.” It’s because these cases are a mess.
There was a horrible story on Reddit from a few years ago about a Turo renter who got in an accident that resulted in a double fatality. It was a terrible, tragic event. And who did the victims’ families sue? They went after the owner of the car. The host.
Suddenly, that guy who was just trying to make a few extra bucks on his car is now personally named in a multi-million dollar wrongful death lawsuit. All because the lines of liability are so blurry.
Why Is It So Complicated? The Problem With “Peer-to-Peer”
This is the real takeaway. The reason Turo is always in lawsuits is because the “peer-to-peer” model is built on a shaky foundation. It’s designed to push all the risk away from the company (Turo) and onto the users (the hosts and the guests).
Turo owns no cars. They have no real assets.
When something goes wrong, Turo’s first move is to point to their TOS and say “it’s not our problem.” The host and the guest are left holding the bag.
This is just a completely different world from a professional, managed transportation service. When you book a ride with a company that actually owns its own vehicles and employs its own drivers—like Winter Wagon for example—the entire game changes.
- Insurance: A professional service has real, mandatory commercial auto insurance. Not a “protection plan” with loopholes. It’s built for this exact purpose. If there’s an accident, there is one company and one insurance policy that is clearly responsible.
- Maintenance: The vehicles are maintained by the company on a strict professional schedule. It’s not up to some random host who might be skipping oil changes to save a few bucks.
- Liability: The liability is clear. It stops with the company. You, as a customer, are not going to get dragged into a lawsuit between a driver and the company.
- Permits: A professional service has all its permits. They pay their airport fees. They are legally allowed to operate where they do. You dont have to worry that the car you booked is going to get towed at the airport becuase the company is in a legal fight with the city.
So, to answer your question. Yes. Turo is in lawsuits. They are in lawsuits with airports, with cities, with their own customers, and are at the center of messy accident claims.
It’s the nature of their business. They built a model that tries to skip all the hard parts of being a transportation company. And now, the lawyers are catching up. It might seem a little cheaper up front, but you have to ask yourself if those savings are worth the huge, huge risk you’re taking on.