Garagekeepers Legal Liability Insurance
Protect your customers' vehicles with comprehensive garagekeepers legal liability insurance — trusted coverage for auto service businesses.
Why NITIC
What is Garagekeepers Legal Liability Insurance?
Garagekeeper legal liability insurance protects your business against all the damages from the potential risks to the customer's vehicle under your custody. As an auto service business owner, you are responsible for vehicles left in your care — garagekeepers coverage ensures you are protected when the unexpected happens.
Three Types of Garagekeepers Protection
- Legal liability: Pays for damages to a customer's vehicle only if you are found to be negligent. For example, if one of your employees caused damage to a customer's car while performing repairs, legal liability coverage would pay for repairs.
- Direct primary: Pays for damage to the customer's vehicle regardless of fault. Under this form, events like theft and weather damage would be covered even if you weren't negligent.
- Direct access: This is essentially a gap coverage — it pays when the customer's own insurance pays, covering what their policy doesn't.
What is NOT covered by garagekeepers insurance?
- Radar detectors
- Uninstalled stereo equipment
- CDs and DVDs
- Items in the trunk
- Phones, scanners, and radios
Garagekeepers vs. Garage Liability Insurance
These are two distinct coverages that are often confused:
- Garagekeepers liability is designed for those vehicles which you possess but don't own — it covers customer vehicles in your care, custody, or control.
- Garage liability provides financial security against accidents leading to damages or bodily injuries during garage operations — it covers your business operations more broadly.
What's Covered
Legal Liability Coverage
Pays for damage to a customer's vehicle only when you (or your employees) are found to be negligent. Required proof of fault before coverage applies.
Direct Primary Coverage
Pays for customer vehicle damage regardless of fault — including theft and weather events. The broadest and most comprehensive form of garagekeepers coverage.
Direct Access Coverage
Gap coverage that pays when the customer's own auto insurance covers a loss, paying the portion not covered by their policy.
Comprehensive
Protects customer vehicles from non-collision events including fire, theft, vandalism, and natural disasters while in your care.
Specific Causes of Loss
Covers only specific named perils (fire, explosion, theft, windstorm) — a more limited but lower-cost garagekeepers option.
Collision
Pays for damage to a customer vehicle resulting from a collision while in your care, custody, or control — such as during a test drive.
Who Needs Garagekeepers Legal Liability Insurance?
Garagekeepers insurance is needed by any business that has customers' vehicles in its care, custody, or control. This includes:
- Towing companies
- Body shops and collision repair centers
- Service stations and gas stations
- Car washes
- Auto dealers (new and used)
- Auto repair shops and mechanics
- Parking lots and garages
- Restaurants and hotels with valet services
How Much Does Garagekeepers Insurance Cost?
Garagekeepers insurance rates depend on: the type of vehicles serviced, value of vehicles in your care, number of vehicles typically on premises, claims history, and the type of garagekeepers coverage selected (legal liability, direct primary, or direct access). Contact NITIC at (800) 726-8376 for a free quote.
Frequently Asked Questions
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Competitive rates, same-day coverage, and expert service from commercial truck insurance specialists licensed in 48 states.