Well, the dealership went and damaged your car while it was in their care for service. Now, there’s the question of whether you must file an insurance claim. But this is a dealership we’re talking about. They have several hundred cars in their lot, so they’re no stranger to having car insurance.
As a business, it is also responsible for carrying business insurance should something go wrong with its customers –which it just has in this case. Let’s look at accidents that happen while on the dealership’s lot.
Is a Car Dealership Responsible for Damage Caused during Routine Maintenance?
When your vehicle sustains damage while being serviced at a car dealership, the responsibility for the damage typically depends on several factors, including the terms of service agreements, the nature of the damage, and the specific circumstances under which the damage occurred.
- Service Agreement Terms: Most dealerships have a service agreement that you sign before they work on your vehicle. This agreement may include clauses related to liability for damages while your car is in their care. It is crucial to review these terms to understand the dealership’s liability.
- Negligence or Fault: If the damage to your vehicle occurred due to the negligence or fault of the dealership or its employees, the dealership is generally responsible for the repair costs. For instance, the dealership would likely be liable if a mechanic damages your car while repairing it.
- Insurance Coverage: Dealerships typically have garage keeper’s liability insurance, which covers damages to customer vehicles while in custody. If the dealership is found liable, this insurance might cover the damages.
- Circumstances of the Damage: The nature of the damage and how it occurred also play a role. Suppose the damage is due to events beyond the dealership’s control, such as natural disasters or vandalism by third parties. In that case, the dealership may not be held responsible.
- Your Insurance Coverage: If the dealership denies responsibility or the situation falls into a gray area, you might need to file a claim with your car insurance, assuming you have comprehensive coverage. This could involve paying a deductible and potentially dealing with premium increases.
It is advisable to communicate directly with the dealership to understand their policy on such matters and to review any service agreements you have signed. If the situation remains unresolved or there is a liability dispute, consulting with a legal professional experienced in automotive or insurance law may be beneficial.
Is There Insurance For Car Damages Caused by a Dealership?
You don’t need to hit the dealership with a lawsuit for this to be resolved. They more than likely caused the damage unintentionally and are prepared with their insurance.
Whether your car is damaged by them in their garage, by the mechanic servicing it, or even by driving around the lot –the dealership’s commercial insurance should cover it. Their coverage should immediately apply to your car when you drive onto their grounds.
If you plan on leaving your car with them for any period, ask what kind of insurance they have. Some dealerships carry direct insurance that provides coverage regardless of fault.
What if You Caused The Damage?
The damage you cause, like driving around the lot and hitting an unsold car, for example, will be covered by your insurance in most cases. Vehicles in a dealership lot are often empty, so you won’t need to worry about a personal injury claim as it is mostly property damage.
The damage shouldn’t be too severe since no one is speeding around a dealership’s lot if you were to injure someone with your car while on the lot, that is another story.
What Kind of Insurance Will Cover Car Damage at Dealerships?
You don’t need to be an expert in car insurance to understand how and who covers damages caused at dealerships.
Here are common types of insurance that you can use to cover damage caused by a dealership if their insurance does not and vice versa:
- Liability insurance - This covers injuries to someone else and damage to their property that you cause. The law usually requires liability insurance; businesses like dealerships should also carry it.
- Comprehensive insurance covers any damages when a car is parked, such as storm damage or criminal damage. As you can imagine, dealerships will have a form of this insurance for all the vehicles they have on their lot should anyone break before they buy.
- Collision insurance covers damage to your car in an accident you caused. A one-up from standard liability insurance, which just covers the damage you cause.
When Would The Dealership’s Insurance Cover Damage to Your Car?
We’ve just covered the role of fault in determining whether the dealership’s insurance will cover damage to your car on their lot. That being said, there are some exceptional cases.
Some states have laws requiring that both you and the dealership pay shares of the damage. Other times, when the fault is hard to determine, 50/50 insurance claims may be filed.
Since 2005, Insurance Navy has been helping drivers of all risk levels get insured, and you could be next. Get cheap car insurance quotes online or over the phone at 888-949-6289 and see how much you could save for affordable auto insurance. We also provide quotes online or in person at one out of many locations.
