What Does Garage Keepers Insurance Not Cover? | Garage Keepers Insurance
When running a business that handles customer vehicles, having the right protection in place is essential. Many business owners ask, “What does Garage Keepers Insurance not cover?” While this specialized coverage is designed to protect vehicles under your care, custody, or control, there are still certain exclusions every garage owner, repair shop, or auto dealer should understand.
In this article, Garage Keepers Insurance breaks down the limits of coverage, how it differs from auto dealer insurance coverage, and why comparing auto insurance deals or finding the best auto insurance deals is not the same as having the right policy for your garage operations.
Understanding Garage Keepers Insurance
Garage Keepers Insurance is a policy designed specifically for businesses that store, service, or repair customer vehicles. Whether you own a body shop, car dealership, repair shop, or detailing service, this coverage ensures that if a customer’s vehicle is damaged while in your care, you won’t have to pay out of pocket.
But unlike auto insurance deals that focus on personal vehicles, Garage Keepers Insurance has unique terms. While many business owners search for the best deal on auto insurance or look into state farm auto insurance bundle deals, garage businesses need specialized coverage that addresses liability unique to their industry.
What Garage Keepers Insurance Does Not Cover
While Garage Keepers Insurance is comprehensive, it does not cover everything. Here are the most common exclusions:
1. Employee-Owned Vehicles
If your employees park their own cars on your business lot and something happens, Garage Keepers Insurance will not cover those losses. Instead, your employees should have their own auto insurance deal or policies that provide protection.
2. Faulty Workmanship
If damage occurs due to poor repair work, defective parts, or incorrect installation, Garage Keepers Insurance does not apply. For instance, if a mechanic incorrectly installs a windshield and it later breaks, that damage falls under professional liability, not Garage Keepers coverage.
3. Contractual Obligations
Certain contracts you sign may not be included. For example, if you signed a lease requiring specific coverage and fail to meet that requirement, your Garage Keepers Insurance won’t fill the gap.
4. Racing, Off-Road Use, or Unauthorized Use
If an employee takes a customer’s car for a joyride, participates in racing, or uses the vehicle outside of agreed business purposes, any resulting damage will not be covered.
5. Personal Property in the Vehicle
Garage Keepers Insurance only covers the vehicle itself—not items left inside. A stolen laptop, cell phone, or personal belongings are not part of the coverage.
6. Acts of Dishonesty
If an employee intentionally damages or steals a customer’s vehicle, Garage Keepers Insurance excludes those losses. This is where business owners may need additional employee dishonesty coverage.
7. Environmental and Catastrophic Events
Certain natural disasters, such as floods or earthquakes, may require separate endorsements or policies. Standard Garage Keepers coverage often does not include these risks.
Garage Keepers Insurance vs. Auto Dealer Insurance
Many people confuse Garage Keepers Insurance with auto dealer insurance coverage. While they both apply to businesses in the automotive sector, they serve different purposes:
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Auto dealer insurance coverage protects the dealership itself, its operations, and vehicles owned by the dealer. It includes policies like general liability, workers’ compensation, and even used auto dealer insurance or used car auto dealer insurance packages.
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Garage Keepers Insurance focuses solely on customer vehicles in your care.
While some auto dealer insurance companies bundle Garage Keepers Insurance with other policies, not every auto dealer insurance company offers the same protection. It’s important to compare auto dealer insurance requirements, auto dealer insurance cost, and what exclusions are included.
For instance, if you’re shopping for florida auto dealer insurance or reviewing an auto dealer insurance quote, make sure Garage Keepers coverage is explicitly listed.
Why the Right Coverage Matters
It’s tempting to look for the best auto insurance deal or the best deal for auto insurance when cutting business expenses. However, personal policies and consumer-focused auto insurance best deals don’t provide the same level of protection as Garage Keepers Insurance.
Your business faces unique risks that demand specialized coverage. A single uncovered incident could cost tens of thousands of dollars, especially when dealing with high-value cars on your lot. By working with experienced auto dealer insurance companies, you can ensure that your coverage goes beyond basic dealer auto insurance and protects what matters most—your reputation and your customers’ trust.
Frequently Asked Questions
1. What is the main purpose of Garage Keepers Insurance?
Garage Keepers Insurance protects customer vehicles that are in your care, custody, or control from damage caused by fire, theft, vandalism, or accidents while being serviced or stored.
2. Is Garage Keepers Insurance the same as auto dealer insurance?
No. While auto dealer insurance coverage protects dealerships and their owned vehicles, Garage Keepers Insurance focuses on customer-owned vehicles left in your care. Both are important but serve different needs.
3. Does Garage Keepers Insurance cover personal property inside the car?
No. Items such as cell phones, wallets, or laptops inside the vehicle are not covered. Garage Keepers Insurance only applies to the car itself.
4. Will Garage Keepers Insurance cover employee misuse of a vehicle?
No. If an employee takes a customer vehicle for unauthorized use or causes damage due to dishonesty, it is excluded from coverage.
5. How much does Garage Keepers Insurance cost?
The cost varies depending on your business size, services, location, and risk factors. It can be bundled with auto dealer liability insurance or auto dealer insurance requirements depending on your provider. Always request an auto dealer insurance quote for accurate pricing.
6. Do I need Garage Keepers Insurance if I already have general liability insurance?
Yes. General liability covers accidents like slips and falls, while Garage Keepers Insurance specifically protects customer vehicles in your possession.
Final Thoughts
Garage Keepers Insurance is a crucial safeguard for businesses that service, repair, or store customer vehicles. While it provides peace of mind, it is not all-encompassing. Knowing what Garage Keepers Insurance does not cover—such as employee misuse, faulty workmanship, or personal belongings—can help you avoid costly surprises.
When comparing deals on auto insurance, best auto insurance deals, or state farm auto insurance bundle deals, remember that those policies are tailored for individuals, not businesses handling customer cars. Instead, prioritize specialized coverage through trusted auto dealer insurance companies to ensure you meet all auto dealer insurance requirements and protect your business from unnecessary risk.