What is garage keepers insurance?

Businesses that take temporary custody of customer vehicles are responsible for those vehicles, and could have to pay for any damage that customer vehicles sustain. Garage keepers insurance may help Texas businesses that store customer cars and trucks from this risk.

Garage keepers insurance generally provides specific coverage for when a customer vehicle is in a business’s custody. Policies normally protect against damage to and loss of customers’ vehicles.

Which businesses in Texas need to have garage keepers liability insurance?

Texas businesses should probably have garage keepers liability insurance if they take possession of customer vehicles. Businesses that park, tow, store or repair vehicles usually get policies. For example, the following businesses might need this insurance:

  • Service centers at new car dealerships
  • Independent mechanics and repair shops
  • Quick oil change services
  • Tow trucks and wreckers
  • Police departments that tow
  • Vehicle storage facilities
  • Valet parking services

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What risks are covered by garage keepers liability insurance?

The specific coverages of a garage keepers liability insurance policy depend on its terms, conditions and exclusions. Generally, policies may provide coverage for vehicle damage/loss resulting from:

  • Multi-vehicle collisions
  • Single-vehicle accidents
  • Severe weather conditions
  • Natural disasters
  • Vandalism and theft
  • Smoke and fire

Do garage keepers policies cover items left in customer vehicles?

Garage keepers liability insurance normally provides liability protection if a customer vehicle is damaged or stolen. That coverage usually doesn’t extend to anything customers might have in their vehicles. No, most policies don’t cover customer belongings.

Businesses usually address the risk of stolen customer belongings by having stated policies that tell customers the business isn’t liable for what might be in a vehicle. 

If a business really wants coverage for customer belongings, an insurance agent specializing in garage keepers can help look for a policy that does include this protection.

Does garage keepers cover a business’s owned vehicles?

As a liability coverage, garage keepers mainly protects against the costs that a business may have to pay if a customer vehicle is damaged. The insurance usually doesn’t cover owned vehicles against damage.

Instead, businesses normally need commercial auto insurance to protect their owned vehicles.

Can garage keepers policies cover classic and exotic cars?

Yes, garage keepers is readily available for classic cars, exotic cars and other expensive vehicles. This doesn’t mean that all policies provide sufficient coverage for these vehicles, however.

Businesses that regularly take custody of expensive vehicles should work with a knowledgeable insurance agent, who can check policy coverages to find a policy that provides the protections needed.

Garage Keepers Insurance Texas

Does general liability insurance cover customer vehicles?

General liability normally protects against common risks that businesses in diverse industries face. For example, it might cover slip and fall accidents, slander and libel, and false advertising.

For protection against damage to customer vehicles, garage keepers is usually needed.

What’s the difference between direct primary and legal liability coverage?

Garage keepers policies usually offer either direct primary or legal liability coverage. The difference lies in the claims that a policy covers.

Legal liability typically only covers claims in which the business is legally responsible for damage to a customer vehicle. Direct primary typically covers claims regardless of whether a business legally has to.

Direct primary offers more robust protection in most cases, but it also can cost more. A knowledgeable agent can help businesses decide which option is best for them.

How much does a garage keepers policy cost?

How much garage keepers policies cost varies, as premiums are set according to a number of factors. Some details that commonly influence costs are:

  • Number of customer vehicles held
  • Average value of customer vehicles
  • Storage location where vehicles are held
  • Security systems in place
  • Any recent insurance claims

For a custom quote, businesses should contact an independent insurance agent. Independent agents can compare multiple quotes from different insurance providers.

How can Texas businesses get garage keepers insurance?

If you need help finding garage keepers insurance for a Texas business, reach out to the independent agents at Wise Insurance Group. We’ll work with you to identify coverage needs, and help you find the best policy that meets those needs.

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