Insurance while at a garage?

[dr_gn]

All, what insurance documentation should I ask to see if my car is at a garage, and will be driven by the proprietor?

The car is on an agreed value policy (for what I consider to be a significant amount), but I believe it wouldn’t be insured on my own policy between me dropping it off and collecting it from the premises, or while being test-driven by the proprietor before dropping it off.

It’s one of those things that I just “assume will be OK”, but…what if the car was damaged and it turns out the garage wasn’t insured properly? Presumably it would get very messy?

Thanks.

[Shezbo]

The garage (if a proper one!) will have own 'insurance cover' that usually runs to £3m +

[Old Merc]

I used to own a car repair business. All responsible traders will have a full Motor Traders Insurance policy, which covers everything. It would be quite easy for you to check with the owner the details of this policy.
Put simply when you leave your car the business is responsible for its safe keeping and it’s covered on their MT policy, including road risks when a mechanic is driving it.
However, the way I understand it is your own insurance is still active. If it’s in a garage being worked on should not affect the cover. If your car was damaged while in the garages care, you would have to notify your own insurer. If your insurer ended up having your car repaired, or paid out the agreed value, they would claim against the garage and the garages insurers.
I think it would be best to check with your own insurer first before you go ahead.

[981Boxess]

Shezbo said:

The garage (if a proper one!) will have own 'insurance cover' that usually runs to £3m +

True, any proper garage will have insurance but no two garages are the same and neither is their insurance cover.

Our policy covered us up to an amount we chose and we paid a premium accordingly. The insurer generally impossed a £limit on cars not specified, only named drivers to drive more expensive cars and over an agreed value we would have to give them car details for it to be covered.

My advice to the OP is if the car is worth big money to either cover it on his own policy or take the risk knowing it could go wrong.

[dr_gn]

Thanks all. My insurance company said that the car would be covered by the trader's insurance policy while at their premises, or being driven by them.

I understand that their policy has a limit - which would only be an issue if the entire place went up in smoke and the value of all the other cars plus mine exceeded the cover amount (that's very difficult to ascertain for anyone but the garage owner I guess?).

I just wanted to know if there was a specific document I should ask to see before them driving the car or leaving it at their premises?

This may seem completely OTT, but I'd rather be accused of being fussy now than being told "ahh well you should have...." if the unthinkable were to happen.

[Trevor555]

dr_gn said:

The car is on an agreed value policy (for what I consider to be a significant amount)

This is where it could get messy if the dealer had to claim on his policy.

Trade insurers won't pay out far more than what they feel the car is worth.

[Little Pete]

Be honest with the garage and tell them your concerns. We have an agreed limit for vehicles on the premises and also a limit for individual vehicles. When I have something in that exceeds the maximum, I inform my broker and they sort it with the insurers. Sometimes there is a small premium to pay for the extra cover.

[stevemcs]

If its in our car park its down to the owner in the same way it is if you park it at tesco's, if its in our workshop either over night or being worked on its our cover, if its being driven by us then its on our cover. Our only stipulation (for our cover) is for us to be insured the owner must have insurance in place (strange i know !)

[Old Merc]

dr_gn said:

Thanks all. My insurance company said that the car would be covered by the trader's insurance policy while at their premises, or being driven by them.

I understand that their policy has a limit - which would only be an issue if the entire place went up in smoke and the value of all the other cars plus mine exceeded the cover amount (that's very difficult to ascertain for anyone but the garage owner I guess?).

I just wanted to know if there was a specific document I should ask to see before them driving the car or leaving it at their premises?

This may seem completely OTT, but I'd rather be accused of being fussy now than being told "ahh well you should have...." if the unthinkable were to happen.

As its an agreed value policy, I presume its a classic car. If the garage specialises in valuable classic cars I`m sure they will have a special MT policy.
I still maintain that your own insurance policy will still be valid. Yes its covered by the garages MT policy as well, and they are fully responsible for any damage. but, if it all went tits up I`m sure you would be able to claim on your insurance.
The "specific document" you want to see is the garages MT policy document, ask to read through it. And your own policy.

Edited by Old Merc on Friday 22 September 15:13

[MDMA .]

981Boxess said:

Shezbo said:

The garage (if a proper one!) will have own 'insurance cover' that usually runs to £3m +

True, any proper garage will have insurance but no two garages are the same and neither is their insurance cover.

Our policy covered us up to an amount we chose and we paid a premium accordingly. The insurer generally impossed a £limit on cars not specified, only named drivers to drive more expensive cars and over an agreed value we would have to give them car details for it to be covered.

My advice to the OP is if the car is worth big money to either cover it on his own policy or take the risk knowing it could go wrong.

We have to display ours in the reception.

[981Boxess]

dr_gn said:

I just wanted to know if there was a specific document I should ask to see before them driving the car or leaving it at their premises?

This may seem completely OTT, but I'd rather be accused of being fussy now than being told "ahh well you should have...." if the unthinkable were to happen.

Fair enough for asking but you don’t appear to be listening to the answers.

The only way you can be sure you will be covered to YOUR satisfaction is to cover the risk yourself.

[2 sMoKiN bArReLs]

If the worse came to the worse surely (I don't, don't call me Shirley) you'd just claim off your own insurance. Then it would be their job to recoup what they could from the garage's insurance?

[PistonBroker]

981Boxess said:

MDMA . said:

981Boxess said:

Shezbo said:

The garage (if a proper one!) will have own 'insurance cover' that usually runs to £3m +

True, any proper garage will have insurance but no two garages are the same and neither is their insurance cover.

Our policy covered us up to an amount we chose and we paid a premium accordingly. The insurer generally impossed a £limit on cars not specified, only named drivers to drive more expensive cars and over an agreed value we would have to give them car details for it to be covered.

My advice to the OP is if the car is worth big money to either cover it on his own policy or take the risk knowing it could go wrong.

We have to display ours in the reception.

Isn’t that public liability insurance that has to be displayed? Rather than a MT policy.

No, it's the Employers' Liability certificate.

Doesn't need to be displayed in reception. Just needs to be somewhere the employees can see it. That could be electronically these days in a shared file.

Neither Public nor Employers' Liability have any relevance to the OP's question.

OP - the garage will insure a certain amount for customers' vehicles and that will often have an inner limit per vehicle. If they're a decent place and they've got a decent broker - cough - then that figure will be sufficient to pay out the value of your vehicle should something happen to it whilst it's in their custody.

You could always ask them what those figures are. If they want to reassure you then I don't suppose they'll mind telling you.

[Old Merc]

This getting a bit boring now, time for fun.



I wonder what this companies motor traders policy costs. Put a value on the contents of that workshop.

[981Boxess]

PistonBroker said:

OP - the garage will insure a certain amount for customers' vehicles and that will often have an inner limit per vehicle. If they're a decent place and they've got a decent broker - cough - then that figure will be sufficient to pay out the value of your vehicle should something happen to it whilst it's in their custody.

You could always ask them what those figures are. If they want to reassure you then I don't suppose they'll mind telling you.

Even if you establish what those figures are that doesn't guarantee the insurers will pay out the OPs agreed value - they will pay out like any other claim.

Another thing nobody has asked is how much money are we talking about here, because you are not going to get the same level of arguments over a £5k claim compared to a £5m claim.

[dr_gn]

Thanks all. We’re talking £100k+ agreed value.

What I’m taking away from this is that if you take your car to a garage, and/or let the proprietor drive it, you may or may not get your agreed value should anything terrible happen to it, because all the effort you put into carefully selecting an insurer, and paying to have a valuation, pretty much goes out of the window at that point (I already spoke to my insurer, who confirmed that while at a garage, their insurance doesn’t apply).

This seems a very dodgy situation for what must be a common scenario, and I’m amazed it’s not clearer.

[Old Merc]

As it’s that valuable I would suggest that you only deal with a well known classic car business that only deals with very valuable high end cars.
Talk with the owner and find out what sort of insurance they have and how it works. Also if you are still worried find an insurance legal expert who may give you more advice on the agreed value part of it.

[dr_gn]

Old Merc said:

As it’s that valuable I would suggest that you only deal with a well known classic car business that only deals with very valuable high end cars.
Talk with the owner and find out what sort of insurance they have and how it works. Also if you are still worried find an insurance legal expert who may give you more advice on the agreed value part of it.

Thanks for the advice. I must say from bitter experience that reputation does not necessarily equal competence, and from what I've been told, and read in the specialist press over the years, nor is it a guarantee of integrity, but of course I understand the sentiment of what you're saying.

I have known the person who I'm thinking of letting look at it for a very long time, and they specialise in my car type. I have no issue with trusting them to do a good job and to drive it carefully (they have driven it before in the distant past, before becoming a specialist). Their garage is full of valuable cars and parts, but again, that's pretty irrelevant in the context of what I'm asking. My questions are purely "in theory", asked because I'd hate to be wise after the event, in the admittedly very remote scenario of something going horribly wrong. I'll ask to see their Trader Insurance, and take it from there.

[Old Merc]

I found this https://www.autoevolution.com/news/rare-mercedes-3...
The garages insurance paid the repair bill of a million. Mind you it’s Germany

[981Boxess]

dr_gn said:

Thanks all. We’re talking £100k+ agreed value.

What I’m taking away from this is that if you take your car to a garage, and/or let the proprietor drive it, you may or may not get your agreed value should anything terrible happen to it, because all the effort you put into carefully selecting an insurer, and paying to have a valuation, pretty much goes out of the window at that point (I already spoke to my insurer, who confirmed that while at a garage, their insurance doesn’t apply).

This seems a very dodgy situation for what must be a common scenario, and I’m amazed it’s not clearer.

It's a lot of money so I understand your concerns but I would not expect it to be any different to be fair.

Your insurer took on a risk, you are the named driver covered on the basis of your driving history, age etc, the car is kept where you told them together with other relevant factors. They weighed it all up and came up with a risk/premium you both agreed to and you took them up on it.
If (not suggesting you would at all) you then take the car to some two bob garage, in a rough part of town, the lad takes the car out to see what they are like and the car gets written off could you in any way consider it to be fair that your insurers would have to honour the agreed value when every aspect of the risk they agreed to has been changed?

If you know the garage well enough to trust them with your car in the first place I am sure they will do their very best to look after it and the repairs will come and go without issues.