Vehicles in your custody
Customer Vehicles and Motor Trade Insurance
A customer’s car may be driven, dismantled, stored, valeted or left outside. Different policy sections can apply at different points, so “customer vehicles covered” is not a complete answer.
Driving and custody are separate exposures
A road-risk section may respond when an eligible driver uses a customer vehicle for an insured motor-trade purpose. Damage while the vehicle is stationary, on a lift, awaiting work or stored overnight may depend on custody-and-control, material-damage or other wording.
The policy should be checked for territorial limits, trade-plate requirements, driver restrictions, demonstration use and whether collection or delivery is permitted.
The limit needs to match the busiest realistic day
Customer-vehicle values can accumulate during holidays, parts delays or major repair work. A garage that usually holds six cars may temporarily hold far more. High-value or unusual vehicles may also exceed a standard any-one-vehicle limit.
Record vehicles received, keys issued, condition on arrival and authority for road tests. Photographs and job-card timestamps can be valuable if responsibility is disputed.
Pay attention to work-related damage exclusions
Some policies distinguish accidental damage to a vehicle from the cost of correcting defective workmanship or replacing the part being worked on. For example, damage caused by a lift failure may be treated differently from an incorrectly installed component. Read the definitions and exclusions rather than assuming every workshop error is insured.
Security conditions can be very specific
Key storage, alarm setting, perimeter gates, overnight compounds and immobilisation requirements may operate as conditions of cover. Businesses collecting vehicles from customers’ homes should also consider how keys and paperwork are protected in transit.
This guide is educational and does not confirm cover for a particular incident. The policy schedule, wording and endorsements govern.