How Much Is Garage Keepers’ Insurance

Various businesses, from repair shops to car washes and valet services, need garage keepers’ insurance due to potential liabilities when handling customer vehicles.

Our guide offers insights on insurance costs for informed policy decisions.

Garage keepers' Insurance
Garage keepers’ insurance: Photo source (Sapling)

How Much Does Garage Keepers’ Insurance Cost?

Garage keepers’ insurance costs differ based on factors such as business revenue, location, customer base, vehicle types serviced, and daily volume.

High crime areas or expensive vehicles increase costs.

Rates depend on coverage choice and typically range from $800 to $2,000 annually.

What Is Garage Keepers’ Insurance?

Garage keepers insurance is an essential policy for any business that involves taking possession of a customer’s vehicle.

Depending on the nature of your business, a car may be stored or parked longer than it is actually being serviced.

And often, during these states, vehicles are less closely monitored and may be at greater risk.

In addition to harm from the work itself, damage to or theft of a customer’s car while simply in your custody can ruin your reputation and be extremely costly.

This policy makes sure your client’s property is safe and protects your business in case of a lawsuit.

What Does Garage Keepers’ Cover/Not Cover?

Garage keepers’ insurance protects you if a client’s vehicle is harmed or damaged while being serviced or in your possession.

Some covered risks include:

  • Fire
  • Theft
  • Extreme weather
  • Vandalism at your business
  • Other accidental damage, like collision

These policies do not cover damage from faulty service, parts, insufficient warranties, and employee theft.

Additionally, customer possessions inside their vehicles, including non-factory stereo equipment, are exempt from common policies. You can choose to add endorsements of client property to extend such coverage.

The main risk not covered by garage keepers’ insurance is liability protection from bodily injury or property damage from an accident.

Garage liability insurance is necessary for this type of coverage.

Types Of Garage Keepers’ Insurance

Garage keepers’ insurance coverage is a policy meant to protect your customer’s property while in your care.

The covered scenarios include damage caused by your actual service, accidents outside your control, and malicious acts by outside forces.

The following are the forms of protection provided by garage keepers’ insurance.

  • Legal liability: Most common type of coverage. Protects a customer’s vehicle from harm resulting from your company’s negligence.
  • Direct primary: Coverage for damage caused by outside forces, like theft or extreme weather. You are protected no matter who is at fault.
  • Direct excess: Pays damages in excess of your cost collectible.

Benefits and Risks

When you service someone’s car, you are often dealing with one of their most expensive and prized possessions.

There are countless ways your work or the acts of others can harm a vehicle in your care, whether you are responsible, or through no fault of your own.

No matter the scenario, you may be held liable and face a lawsuit. Garage keepers’ insurance provides protection if such a case occurs.

Customers will also feel more comfortable bringing their vehicle to a shop that is properly covered.

Additionally, full coverage will allow each employee to focus on their work.

Garage keepers’ policy coverage is not only relevant in case something goes wrong, but it can also expand your business and ensure you are able to recruit the best people.

How to get Cheaper Garage Keepers’ Insurance

When considering garage keepers’ insurance cost, keep the following in mind before making your decision:

  • Bundle policies: Add garage keepers’ coverage to your general liability policy. Companies will often provide discounted rates when you combine certain key coverages.
  • Compare quotes: Policy premiums vary between insurers. Consider at least three quotes to find the best rates and coverage.
  • Work with an independent agent: An independent insurance agent will help direct you toward providers with the best rates and those that have the most experience with your industry.
  • Identify your risks: Be sure to thoroughly analyze your business to identify potential risks. After that, choose the proper limits and include all the applicable coverages.

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