GARAGEKEEPERS LIABILITY INSURANCE

What is garagekeepers liability insurance?

This will protect you when you have your customers’ cars in your care, custody, and control. It protects the customer’s car from things like vandalism, theft, and fire, or other disasters that might happen while you’re “taking care of” someone else’s car. Basically, garagekeepers would come in handy if there was a fire at the garage on your premises where you keep your customer’s cars.

Fun fact: If you live in Texas or Virginia, you would know garagekeepers coverage as storage location insurance.

A note about garagekeepers coverage and per-vehicle deductibles:

A deductible is the amount that you agree to pay if a catastrophe happens before your insurance will step in to cover the costs. You might have a deductible of, say $1,000.

But what if you have multiple vehicles in your care, custody, and control? Let’s take that fire example from above. If you had four cars on your property in your care, custody, and control at the time of the fire, you’d pay $1000 for each of those vehicles before your insurance stepped in. So that would be $4000 out of your pocket.

How much garagekeepers insurance do I need?

Every towing business is different, meaning that every towing business is going to need a different amount of garagekeepers’ coverage. To figure out how much insurance you should get, we’ll need to do a bit of math.

  1. First, figure out how many cars you usually have in your care, custody, and control at any given time.
  2. Second, figure out the average value of the cars that you usually have in your care.

Say that you usually have 12 cars in your care at any given time. The average value of these cars might be $22,000. To figure out what kind of coverage you need, all you have to do is multiply 12 x 22,000. That comes to $264,000, so you need to make sure that your insurance has a limit of at least that much.

How much does garagekeepers insurance cost?

As you might have noticed above, there are a lot of different factors that go into determining how much coverage you need and how much you’ll pay for it. To figure out how much garagekeepers is going to cost for your particular business, let us get some quotes for you! We’ll find some rates that are specifically calculated for your business.

SCENARIO 1

Say that you’ve got a customer’s car on your lot and you’re moving it to a new location on your premises. You need to put in a new place for storage until the customer figures out where they want the car to go. As you’re moving the car, you get distracted by a car horn blaring on the street and accidentally plow the car into the side of your brick garage. Ooops. Well, at least you know that your garagekeepers insurance will cover the repairs...which might help you explain the situation to the extremely annoyed customer. While they might not trust you with their car ever again, at least you don’t have to cover the repairs entirely out of your own pocket.

SCENARIO 2

You get a roadside assistance call in the middle of the night, towards the end of your shift. You bring the customer’s car into your shop overnight for storage because their mechanic isn’t open overnight. You head home for the night. You wake up the next morning to your cell phone ringing like crazy. It’s not good news. Your shop has suffered a pretty bad fire, and that customer’s car? The one that you rescued last night? Well, it’s toast. Fortunately, your garagekeepers insurance would cover it, so that’s one less expense that you have to worry about.

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