Garagekeepers Insurance
Garagekeepers Insurance provides coverage for damage to customers’ vehicles left in your possession for service, repair, storage, or parking. It’s designed for businesses that routinely handle vehicles they don’t own, such as auto repair shops, dealerships, detailers, and valet services.
Protect Your Assets with Garagekeepers Insurance
At AutoRisk, we provide tailored insurance solutions that allow business owners to operate with peace of mind, knowing their assets and liabilities are covered by experts who understand the unique demands of the automotive industry.
States We Provide Insurance Coverage:
Colorado – California – Texas – Wyoming – Arizona – New Mexico – Utah – Kansas – Missouri – Oklahoma – Arkansas – Idaho – Iowa – Indiana – Nebraska – Nevada – North Dakota – South Dakota – Montana
What Is Garagekeepers Insurance?
If a customer’s car is damaged by fire, theft, vandalism, collision, or other covered events while in your care, Garagekeepers coverage helps pay for repair or replacement costs.
This protection goes beyond standard General Liability or Property Insurance, which typically do not cover vehicles owned by others.
Why Your Business Needs It
When customers trust you with their vehicles, they also expect you to protect them. Even one unexpected incident can lead to significant repair costs or lawsuits.
You need Garagekeepers Insurance if:
You service, repair, or park customer vehicles.
You operate a dealership, body shop, or towing company.
You store vehicles overnight on your lot or inside your facility.
You handle customer cars for detailing, oil changes, or test drives.
Without this coverage, your business could be held responsible for damages to customer property, even if the loss wasn’t your fault.
Who Needs Garagekeepers Coverage?
Garagekeepers Insurance is vital for:
Auto repair and body shops
Car dealerships (franchise and independent)
Service stations and oil/lube shops
Tow truck and recovery operations
Valet parking services
Auto detailing and car wash businesses
Tire and brake shops
Customization or accessory installers
If customers leave their vehicles in your possession even temporarily, you have exposure that Garagekeepers Insurance is designed to protect.
Don’t leave your coverage to chance, work with an expert who understands dealer operations.
What is Covered?
What Garagekeepers Insurance Covers
Depending on your policy and coverage type, protection may include:
Fire, theft, vandalism, or weather damage to customers’ vehicles
Collision damage (if an employee drives a customer’s car and is in an accident)
Comprehensive or specified causes of loss (hail, explosion, flood, etc.)
Legal liability for damages you are responsible for under state law or customer agreements
What Garagekeepers Insurance Does Not Cover
While broad, Garagekeepers coverage typically excludes:
Intentional damage or dishonest acts by employees
Defective parts or faulty workmanship (these require separate coverage or endorsements)
Tools, equipment, or personal property inside the vehicle
Damage to your own business vehicles (covered under commercial auto)
Contractual liability unless specified in the policy
Understanding these exclusions helps ensure your overall insurance program has no hidden gaps.
What is the Difference Between Garage Liability Insurance & Garagekeepers Insurance?
Garage Liability Insurance covers damage to a customer’s car caused by the work you did or by the products you installed in the vehicle, where Garagekeepers Insurance covers the physical damage by fire, theft, vandalism or collision to the vehicle while it is being worked on or stored at your location for safekeeping and awaiting pickup by the customer.
Insurance companies generally require that dealers insure 100 percent of the value of their inventories. If you insure less than this, they will only pay a corresponding percentage of your claim.
For example, if the value of your inventory is $200,000 and you insure it at $100,000, the insurance company is only required to pay for 50 percent of your claim.
The most that will be paid for a loss to any single auto is the lesser of the actual cash value of the damaged or stolen property, the wholesale value of the property, the cost of repairing or replacing the damaged or stolen property or the limit indicated as the most that will be paid for any single auto based on the coinsurance formula.
- Monthly reporting requires the dealer to send the insurance carrier a monthly report with the exact dollar value of vehicle inventory. There can be severe penalties if the dealer fails to submit reports to the carrier on a timely basis. After the first report is not received, the carrier will typically only pay 75% of a claimed loss – regardless of the limit on the declarations page. Monthly reporting is typically used to insure inventories valued more than $1,000,000.
- Non-reporting requires the dealer to state the maximum value of the inventory on the premises during the policy term. For this option, it is important to pick the value of the inventory at its highest peak to avoid a coinsurance penalty. Under-estimation of value of inventory can raise the specter of co-insurance as well as any other penalties the insurer may levy in the event of a claim.
Common Loss Scenarios
A fire breaks out in your repair bay and damages several customer vehicles.
A thief breaks into your lot overnight and steals or vandalizes customer cars.
A mechanic accidentally backs a customer’s car into another vehicle.
A hailstorm damages vehicles parked outside waiting for pickup.
In each case, Garagekeepers Insurance can step in to cover the cost of repair or replacement, protecting both your business and your customers.
How to Structure Your Policy
When designing your Garagekeepers policy, consider:
Average number and value of vehicles stored at one time
Storage location and security measures (fenced lot, alarm system, sprinklers)
Employee driving activities (test drives, valet operations, towing)
Coverage limit per vehicle and per occurrence
Deductibles and comprehensive/collision selections
Your broker can help calculate realistic limits based on your daily vehicle count and maximum exposure.
Benefits of Garagekeepers Insurance
Protects customer trust and reputation
Prevents out-of-pocket repair costs from damage claims
Demonstrates professionalism and risk management to clients
Meets lender or vendor insurance requirements
Pairs seamlessly with Garage Liability and Dealers Open Lot coverage for full protection
Benefits of Working With AutoRisk
Hundreds of Clients Nationwide | Fast and Responsive Advisors | Transparent Coverage with No Surprises
Custom Policy Design
We customize your coverage based on your business operations, risk exposure and geographic location with the goal of reducing your claims.
Industry Expertise
We specialize in automotive business risk management. Our team understands the automotive industry and delivers solutions to reduce claims and save money.
Competitive Pricing
We work with specialized underwriters and carriers to offer the most coverage for your dollar, helping you stay profitable while staying protected.
Claims Support That Works for You
In the unfortunate event of a loss, our subject matters experts will help you though the claims process, minimize downtime, and recover value efficiently.
Learn More About the Insurance Required to Protect your Business
Dealers Open Lot Insurance | Errors and Omissions | Garagekeepers | Garage Liability | Commercial Auto | Employee Liability | Property | Workers’ Compensation | Pollution Liability | Cyber Liability | Rental Insurance | On-Hook Towing | Cargo Towing | Vehicle Leasing | General Liability | Excess Liability
