Garage Keepers Liability Insurance

Garage Keepers Liability Insurance:
What You Need To Know

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If your used car dealership, rv dealer, or truck and trailer dealer services or stores customers’ vehicle on your lot, you probably need garagekeepers liability insurance.  

If you’re in search of garage keepers liability insurance for your auto dealer, you’ve come to the right place.  ADIG provides affordable auto dealers insurance quotes in minutes – Whether online or by phone! 

Start your quote online or call us now: (800) 770-3314

What is garage keepers liability insurance?

Garage keepers Legal Liability insurance protects autos in an auto dealers possession from damage due to collision and comprehensive including fire, theft, vandalism.  Garage keepers Liability is an optional coverage and was created for specifically for auto dealers who operate body shops, repair shops, and service stations.  

It provides protection to your customers’ autos when they are in your possession or stored on your premises.

What does garage keepers liability insurance cover?

Garage keepers liability insurance provides your auto dealer coverage for three different options:

Legal Liability. The most common option out of the three, legal liability is applicable to the customer’s vehicle when damage occurs do the negligence of the insured.  The insured in this case would be the auto dealer, including employees. 

The most common instances when legal liability applies is when a customer’s vehicle is on a test drive.  Anther example when legal liability coverage provides protection to an auto dealer is if a customer’s vehicle is broken into or vandalized over night.

Direct Primary.  This garage keepers liability form provides coverage to the customer’s vehicle regardless of liability.  In a loss where the insured was not legally liability, such as weather related loss, theft, vandalism, etc. the direct primary garage keepers provides coverage.  

Direct Excess.  The least common option of the three, direct excess garage keepers liability.  This coverage is very similar to direct primary as it provides protection to an insured for a loss to a customer’s vehicle regardless of liability. 

The only major difference between direct excess and direct primary is that when a loss occurs and the insured is not liable for damage, direct excess provides coverage in excess of any other liability insurance that may exist on the damaged auto(s).  

How much does garage keepers liability insurance cost?

Garage keepers liability insurance is determined by auto dealers insurance company based on a few different factors.  Some details that determine your rate include:

  • Location of your auto dealer
  • Average number of vehicles you service
  • Average number of vehicles stored

On average, garage keepers liability insurance costs vary but are between $400 to $3,000 per year.

Our agency partners with some of the largest providers of auto dealers garage keepers liability insurance.  Give us a call today or fill out a form for a no obligation quote.

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