Garagekeepers Insurance: What You Need to Know
If you own or operate a business where you take care of other people’s vehicles, like an auto shop, towing service, or valet parking, you’ve probably heard of Garagekeepers Insurance. This specialized insurance coverage is designed to protect your business from potential losses when you’re responsible for a customer’s vehicle.
In this guide, we’ll break down what Garagekeepers Insurance is, what it covers, and why it’s essential for businesses that deal with vehicles.
What is Garagekeepers Insurance?
Garagekeepers Insurance is a type of insurance coverage specifically designed for businesses that store, repair, or park customer vehicles. It provides protection in case a vehicle is damaged, stolen, or vandalized while in your care, custody, or control.
While most commercial auto policies cover your company’s vehicles, they don’t usually cover customer vehicles. This is where Garagekeepers Insurance comes in—acting as a safeguard in the event something happens to a customer’s vehicle while it’s on your property or under your control.
What Does Garagekeepers Insurance Cover?
Garagekeepers Insurance typically covers damages to customer vehicles caused by:
- Fire: If a fire breaks out in your shop or parking area and damages a customer’s vehicle, Garagekeepers Insurance will help cover the repair or replacement costs.
- Theft: If a vehicle is stolen while in your care, this coverage can help cover the loss.
- Vandalism: If a customer’s vehicle is vandalized on your premises, this insurance can step in to handle the repairs.
- Weather-Related Damage: Storms, hail, or other natural disasters can cause damage to vehicles. Garagekeepers Insurance ensures you’re not left paying for those repairs out of pocket.
Types of Garagekeepers Coverage
There are three main types of coverage within Garagekeepers Insurance. Each offers a different level of protection based on the type of risk you want to cover.
- Legal Liability: This covers damages to a customer’s vehicle only if your business is found legally liable for the damage. For instance, if an employee accidentally backs a car into another vehicle in your lot, Legal Liability coverage will help pay for the repairs.
- Direct Primary: This coverage protects the customer’s vehicle regardless of who is at fault for the damage. Even if there’s no clear legal liability, Direct Primary coverage will handle the cost of repairs or replacement.
- Direct Excess: Similar to Direct Primary, but this coverage only kicks in after the customer’s own insurance has been used. It covers the “excess” or remaining costs after the customer’s policy pays out.
Why Do You Need Garagekeepers Insurance?
For businesses that regularly handle customer vehicles, accidents and mishaps can happen even with the best precautions in place. Without the right insurance, the cost of repairing or replacing a customer’s vehicle can be a huge financial burden.
Here are some reasons why you need Garagekeepers Insurance:
- Customer Trust: Clients trust you with their vehicles. Garagekeepers Insurance shows them that you’re serious about protecting their property.
- Financial Protection: Repairing or replacing a damaged vehicle can cost thousands of dollars. This insurance shields your business from absorbing those costs directly.
- Peace of Mind: Accidents are unpredictable. Having the right insurance allows you to focus on running your business without worrying about unexpected repair bills.
How Much Does Garagekeepers Insurance Cost?
The cost of Garagekeepers Insurance can vary depending on several factors, such as:
- The size of your business
- The number of vehicles you typically handle
- The location and risk level of your business
- The coverage limits you choose
For example, a small auto repair shop might pay less than a large parking garage that handles hundreds of cars a day. To get the best rate and coverage for your needs, working with an independent insurance agent like Huff Insurance can help you find the right policy at the right price.
Who Needs Garagekeepers Insurance?
If your business involves handling, parking, or storing vehicles for customers, Garagekeepers Insurance is a must-have. This includes:
- Auto repair shops
- Auto Glass Shop
- Car detailing services
- Auto body shops
- Towing companies
- Valet parking services
- Service stations
These businesses face unique risks that other types of companies don’t. By having the right insurance coverage in place, you can protect both your business and your customers from unexpected financial losses.
How Huff Insurance Can Help
At Huff Insurance, we specialize in helping businesses like yours find the right coverage for the right price. As an independent insurance agent, we have access to multiple markets, which means we can shop around to find you the best Garagekeepers Insurance policy. Our team will work with you to understand your unique risks and ensure you’re fully protected.
Don’t leave your business exposed to costly vehicle repairs or replacements. Let Huff Insurance help you secure peace of mind and the best coverage options today.