Businesses that provide automotive services, such as body shops, parking garages, towing companies, and service stations, must protect themselves against a variety of liabilities.
The act of storing customer vehicles carries several risks. therefore, it is essential that these companies purchase garage insurance. here’s a close look at this form of protection.
what is garage keepers insurance?
Garage keepers insurance is a form of specialty insurance that shields the vehicles that customers leave with auto repair shops and other automotive businesses.
Depending on the type of business, a vehicle (car, truck, or commercial van) may still be parked or stored after it has been repaired.
In fact, it is during this time period that vehicles are most at risk of damage. Garage attendant insurance can help auto companies avoid paying large sums of money out of pocket in the event a customer files a claim and sues you.
types of coverage
Most garage owners insurance policies include three types of coverage: direct primary coverage (which protects businesses regardless of who is at fault for the damages), liability coverage, and direct excess coverage. These coverages offer protection against several different incidents, including:
- weather-related events
- vandalism in a business
- collision and other accidental damage resulting from negligence (for example, a mechanic or other employee crashes a vehicle during a test drive)
- the location of the business (state, proximity to major highways, crime levels in the area, etc.)
- annual business income
- the types of vehicles the company services (cars, trucks, or expensive limousines)
- the average number of vehicles serviced/stored per day
- elected policy limits and deductibles
It is particularly beneficial for auto companies to have shop attendants’ insurance policies cover incidents of theft, as statistics indicate that vehicle thefts in the United States have increased in recent years. Additionally, ValuePenguin estimates that about 1 in 5 stolen cars are recovered, though 30% are returned to damaged drivers ($1,490 in damage, on average).
Exclusions to these types of policies include faulty vehicle parts and workmanship, insufficient warranties, contractual obligations, personal belongings abandoned inside customer vehicles, radar detectors and loss of non-permanently-installed stereo equipment.
Garage attendants insurance is also different from garage liability insurance, which offers businesses protection against bodily injury claims stemming from on-site accidents. This policy generally covers the medical expenses of everyone involved in an accident.
how much does garage keepers insurance cost?
Premiums for garage keepers insurance generally depend on several contributing factors, including:
According to the cost estimating website howmuch.net, annual rates for garage attendants’ insurance policies range from $1,000 to $1,300 on average. however, some auto companies may pay as little as $800 a year, while those that require additional coverage may pay as much as $2,000 a year.
how to save on garage insurance
There are four notable things you can do to get an affordable garage keepers insurance policy:
compare multiple quotes
As with any other type of policy, it’s important to weigh all your options. Policy premiums often vary between insurers; compare at least two or three quotes before selecting a policy.
bundle your insurance
Many insurance companies allow garage attendants coverage to be added to the general liability policy. If this option is available, taking advantage of it may provide a discount for combining multiple coverages.
assess your business risks
Before you rush into choosing a garage attendant insurance policy, carefully evaluate the types of risks your business faces. Once you’ve identified these liabilities, choose your limits and deductibles.
seek help from an independent agency
An experienced and established independent insurance agency will be able to provide invaluable assistance in directing you to companies with affordable rates and who are most familiar with your specific business.
talk to experienced specialist insurance brokers
Contact the professionals at Pro Insurance Group for more information on the average cost of garage attendants insurance. our agents are committed to serving as one-on-one advocates for each of our clients, regardless of budget and needs. we also aspire to build and maintain long-term relationships with our clients.
If you own an automotive business, it’s important to purchase garage attendant liability insurance to protect yourself from certain inherent risks associated with the storage and maintenance of customer vehicles. our policies will protect your business from claims associated with theft, fire, weather-related events, and vehicle damage arising from collisions or employee negligence.
If you need additional coverage, we also offer direct additional coverage. our agents will also help you carefully choose your deductibles and limits based on your unique needs and budget. Call pro insurance group today at 833.619.0770 or contact us online to request a quote or to learn more about our garage attendant insurance policies.