Garage keepers insurance is a unique policy that may interest certain business owners. These business owners will own towing companies or auto repair and service stations. This special insurance is designed to protect them in case one of the cars they have experiences some hardships due to a variety of circumstances. Some states may refer to the coverage as storage location insurance.
What Does Garage Keeper’s Coverage Protect?
The insurance specifically protects the cars the company has to store at its location. The cars belong to various clients, and it covers them in case something unfortunate such as theft, fire or vandalism occurs. The policy pays to cover the damage that occurs while the vehicle is in the insured’s possession. The amount of coverage depends on the provider and what the client is willing to pay. Clients who have more than one business location have to buy separate policies for each location they operate.
How Garage Keeper’s Coverage Works
Garage keeper’s coverage works very much in the same way that other auto insurance policies work. The premium is a monthly amount that is added to the insured party’s regular insurance policy. The maximum benefit is an amount that the insured party chooses that the insurance company will pay per occurrence. Usually, the maximum benefit is somewhere around $2,500, but it could vary depending on the provider’s plans. The deductible is another important number. It’s an amount that the insured party would have to pay upon filing a claim. The insurance company will pay the claim only after the person pays the deductible. Deductibles could be as low as $500, or they could be over $1,000. Deductible choices affect the premiums, so they depend on the client and the provider.
The Benefit of Garage Keepers Insurance
The main benefit of having a garage keeper’s policy in one’s pocket is that the garage keeper can sleep well at night, knowing that his or her clients and their property will be safe. If they are not safe, then the policy will cover the payments to rectify the situation.