Do You Need Garage Keeper’s Insurance?

Does your business do fleet or vehicle washing? If so, it might be time to consider garage keeper’s insurance. Garage keeper’s coverage provides protection for damage to customer’s vehicles due to the insured’s legal liability.

What Does Garage Keeper’s Insurance Cover?

Garage keeper’s coverage is an optional line offering protection to the garage business for loss to a customer’s auto left in the insured’s care, custody or control. This includes the insured attending, servicing, repairing, parking or storing the vehicle during garage operations. Policy limits are generally based upon the maximum replacement value of customers’ vehicles in your control at any given point in time. Any damages covered would be subject to a deductible similar to a personal auto policy (comprehensive and collision).

This coverage is commonly written in two different forms:

  • Legal liability: This is the most common form of garage keeper’s coverage. The protection applies to a customer’s vehicle if damaged because of the insured’s negligence. For example, if an employee runs into something while moving the vehicle or the mechanic wrecked the customer’s car while performing a test drive. This form would be most commonly used for the majority of car wash operations and is also the most cost-effective.
  • Direct primary: This form covers the customers’ cars regardless of liability. In a loss caused by no action of the insured, such as a weather loss or theft, despite the vehicle being adequately protected, the direct primary garage keeper’s insurance would pay for the loss.

When determining if your wash operation requires garage keeper’s coverage, review the entire car wash cycle. Evaluate if your washing process would take care, custody or control of a customer’s vehicle at any point. If so, adding this type of coverage could save your business from costly repairs, should a claim occur.

Just call us at 1-800-878-3808 to learn more! Our knowledgeable agents are happy to help you choose the best type of garage keeper’s coverage for your operation.


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