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.
Vehicle custody and control
Map each customer vehicle to its exact custody stage
Customer vehicles do not remain in one exposure throughout a job. A car may arrive for diagnosis, move onto a lift, wait outside for parts, be driven on a road test and then remain ready for collection. Recording those stages makes it easier to understand which policy section, limit or condition may be relevant if damage occurs.
The handover record should identify the person accepting the vehicle, visible condition, mileage, fuel or charge level, warning lights, keys and accessories. During the job, the business should be able to show who authorised movement, why a road test was needed and where the vehicle was stored outside working hours.
High-value, modified, imported, performance or electric vehicles may need referral before work starts. The business should compare the highest individual value with the policy limit and also consider the combined value of every customer vehicle on the premises during a realistic peak period.
- Photograph each side of the vehicle at handover
- Log every key, remote, charging lead and removable accessory
- Restrict road tests to authorised drivers and defined purposes
- Record overnight location and alarm or key-storage arrangements
- Refer vehicles above agreed value or performance thresholds
- Obtain a signed collection record when the vehicle leaves custody
A stage-by-stage custody trail is stronger evidence than a single booking form because it shows where the vehicle was and who controlled it at the relevant time.