One of the questions I see most often from new or prospective Turo hosts is “Which car insurance should I use to insure my fleet?” And the inevitable answers always include Lula and ABI. I’ve had experience with both companies and can say that neither is a bad choice, but neither is perfect.
Both have policies specifically for Turo hosts – Lula’s ORP (Off Rental Program) and ABI’s Period X offer coverage for when your cars aren’t being rented. Turo’s insurance kicks in during rentals, so hosts really only need coverage between bookings.
I haven’t done extensive research lately on either company’s current offerings, as I’ve been relatively happy with Lula for the past year and a half. So I won’t get into a comparison of the details of each plan. But I received a somewhat ominous email from Lula recently that makes me think they might be ending their insurance program pretty soon.
April 19, 2024
Re: LULA – Important Notice for Program Continuation
Dear Valued Customer,
This is an important notice that LULA is considering transferring our master insurance policy providing your insurance benefit and your subscription management to a new company by May 19, 2024. In the interim, your subscription service including claims processing will not change. If a transfer is not successful before that time, your insurance coverage will end on May 19, 2024, and in accordance with the terms of your master services agreement with LULA your subscription will terminate.
We will alert you no later than May 10, 2024, if the transfer is not successful and the insurance benefit will indeed terminate on May 19, 2024.
Email received from Lula
Shortly after receiving this I saw someone had already posted about it on Reddit, where I chimed in that I had gotten the same message. I did some more searching and found an article on Coverager.com that also suggested Lula was getting out of the insurance game and transferring their business to another company. According to Coverager.com:
Our sources indicate that insurtech Lula Technologies is currently in negotiations to divest its poorly managed insurance segment. The prospective acquirer is Nantucket Capital Corp, a San Diego-based MGA established in 2020. The terms of the acquisition include the transfer of the insurance division’s staff to Nantucket Capital.
https://coverager.com/lulas-ai-gamble/
None of this sounds promising for Turo hosts. If we’re left with only one choice for insurance then we’ll be at the mercy of that company. As customers, we win when there’s competition for our business. I don’t have any new information on this, but will share what I hear from Lula on or before May 10.
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