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Customer vehicles cover is the part of a motor trade policy that insures cars belonging to customers while they are in the trader's custody or control. It matters because a trader can be liable for those cars, and their value often exceeds the trader's own property.
Part of: Motor trade insurance
In short
Customer vehicles cover, sometimes called custody or customers' vehicles cover, protects motor traders such as garages, bodyshops, MOT stations and valeters against loss of or damage to vehicles left with them. It usually applies on the premises against risks such as fire, theft and accidental damage, while driving those vehicles on the road falls under the road risks section. Cover may be on a legal liability basis or regardless of fault, with limits per vehicle and in total and key security conditions. Cover is subject to the insurer's acceptance and the policy terms.
When a customer leaves a car with a trader, the trader holds it as a bailee and must take reasonable care of it. For private customers, section 49 of the Consumer Rights Act 2015 also requires the service to be performed with reasonable care and skill. Customer vehicles cover is the policy section designed to meet the cost if those cars are damaged or stolen while in the trader's care. Insurers may call it customers' vehicles, custody, or care, custody and control cover. It is usually part of a combined motor trade policy.
| Cover | Typical scope |
|---|---|
| Customer vehicles | Customers' cars on the premises, against fire, theft and damage |
| Road risks | Using vehicles, including customers' cars where included, on roads under section 143 of the Road Traffic Act 1988 |
| Stock | The trader's own vehicles held for sale |
| Products liability | Injury or damage caused later by faulty work, not usually the cost of redoing it |
The Motor Insurers' Bureau's askMID motor trade guidance lists customers' vehicles in a trader's custody or control among the vehicles that should be added to the Motor Insurance Database where they are covered on a motor trade policy.
Under section 11 of the Insurance Act 2015, an insurer cannot rely on breach of certain risk-reducing terms if the trader shows the breach could not have increased the risk of the loss that actually occurred. See key security conditions.
Garages, bodyshops, MOT stations, valeters, tyre fitters and recovery operators commonly need it. For MOT stations, regulation 14 of the Motor Vehicles (Tests) Regulations 1981 gives the authorised examiner the same responsibility for loss of or damage to a vehicle in its custody for the test as a person who had accepted custody under a contract silent on liability, and bars it from asking customers to sign that responsibility away; see MOT testing station insurance. For a fuller guide see customer vehicles in your care and garage insurance.
Apex arranges motor trade insurance for garages, bodyshops, MOT stations and valeters, and a broker reads your enquiry and comes back with options, with no fee for a quote. We need what the business does, the premises, who drives, turnover, the values of your stock and customers' vehicles, and claims history. Cover is subject to the insurer's acceptance and the policy terms.
It is the section of a motor trade policy that covers customers' cars while they are in your custody or control, for example in for repair, servicing, valeting or storage. It commonly covers fire, theft and accidental damage on your premises, subject to limits and conditions.
No. Customer vehicles cover usually applies to cars on your premises. Driving a customer's car on a road, for a road test or delivery, needs road risks cover that meets the Road Traffic Act 1988 and includes customers' vehicles.
It is not compulsory by law. However, traders can be liable for customers' cars in their care, and consumer law stops them excluding liability for reasonable care and skill, so most traders who hold customers' vehicles treat it as essential.
Set the any one vehicle limit at the most valuable car you might hold, and the total limit at the highest combined value of customers' cars on site at once, including busy periods and cars waiting for parts or collection.
Tell us what your business does, who drives, your premises and vehicle values. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a motor trade enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
