Garage Keepers Insurance

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garage keepers insurance

Garage keepers insurance is regulated by vehicle dealers, body shops and repair shops. Another definition of this insurance is a garage policy. It offers a protective process in case a car is damaged in terms of repair, bodywork or storage.

Liability insurance, such as garage keepers, provides protection against financial setbacks. So this insurance is especially critical for small car businesses. Covered by garage keepers insurance are as follows:

  • Towing companies
  • Auto developers
  • Bodywork companies
  • Auto services
  • Car wash centers
  • Repair companies

Garage Keepers Insurance Coverage

Garage keeper insurance provides three types of protection:

Legal liability is one of the most costly types of claims under insurance. This coverage protects the garage owner against damage caused by employee negligence. For example, if the vehicle has suffered damage caused by the mechanic during any repair process, this coverage is used.

  • Direct Collateral

This coverage comes into effect in the event that adverse weather conditions damage the vehicle or the vehicle is stolen. In direct protection coverage, the protection process will start regardless of who is responsible for the damage.

  • Surplus Collateral

In the case of surplus coverage, the situation is independent of the person causing the damage. However, this coverage does not cover the entire financial loss in case the vehicle is stolen or damaged. Instead, the remainder of the amount not covered by the original policy of the vehicle owner is covered.

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Garage Keepers Insurance Cost

Cost calculation in garage keeper insurance may differ from company to company. Therefore, in order to determine the exact cost of the insurance policy, a price research is required. Factors likely to affect the cost of the insurance premium:

  • Insurance company
  • Types of vehicles
  • Number of vehicles served daily
  • Coverage of the insurance policy

The insurance company considers the above factors when determining the premium amount. However, the average payout of most insurance companies is around $1,000 per year. This amount may increase or decrease in a manner specific to the firm and service recipients.

Additional Coverages with the Garage Keepers Policy

Some guarantees offer standard protection. But the garage keepers policy makes up for the shortcomings in the standard policy. With this insurance, garage owners protect their customers’ vehicles against the following situations:

  • Accidents
  • Vehicle theft
  • Adverse weather conditions
  • Vehicle damage done intentionally by others
  • Fire

Items Not Covered for Garage Keepers

Garage keeper insurance protects customers’ vehicles. However, the following items are not covered by garage keepers insurance:

  • Car stereo
  • Multimedia objects (CD or DVD) contained in the vehicle
  • Items in the trunk and glove box
  • Radio
  • Navigation device
  • In-car phone
  • Tool kits

In addition, damages that are not covered by the warranty are also excluded from the warranty.

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