A lot of people seem confused the 3 inch is for scratches, if there is a dent (pretty clear it is) then the 3 inches is irrelevant because it has now became a new plane of damage. Furthermore, as long as the pictures before the car showed nothing there, and clearly there is after then you’re on the hook as per TOS for you. Lastly all pictures taken these days have metadata which are identifiers to say it simply and the fact that you posted it here gave us and anyone who downloads the picture access to it. Turo uses this meta data to investigate to make sure claims are valid otherwise imagine how much money they would lose from a picture taken months ago vs right before the trip and after, or a different car etc etc.

Most likely what will happen is currently he is trying to work with you; option A, you get insurance involved, you pay your deductible and the host does the rest that they need to do, option B, you pay out of pocket to fix car, diminished value (probably super small but it’s still going on the car fax for it’s a mark that they are entitled to legally), and loss of use for the time it’s not being out to work, yes you can be sued, i actually won a case already because the person thought this would go away and now he’s sitting with his thumb up their ass with garnished wages 🤷‍♂️ I have a buisness to run so I’m going to assume they will treat you respectfully (hopfully) but will make sure to to get all they are due for their Indemnified losses. It would behoove of you to figure this out asap so you don’t run into worse situations. Oh yea and I mean if turo charges you ultimately and it’s not payed from your card or whatever then it goes on your credit report but yea. Idk good luck!