Motor trade cover explained

Customer Vehicles in Care, Custody or Control

Care, custody or control cover protects a motor trader’s financial interest in customer vehicles accepted into the business. Cover can apply at the premises and, if external risks are included, during authorised driving. A standard public-liability policy often excludes property in your custody, so this exposure must be insured deliberately.

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What is normally covered

Accidental damage while moving a vehicle in the yard
Fire or insured storm damage at the premises
Theft subject to security and key-control conditions
Damage during authorised collection, delivery or road testing if external risks apply
Legal liability for insured loss of or damage to an accepted customer vehicle

What is normally excluded

Pre-existing damage recorded at check-in
Wear, mechanical breakdown and gradual deterioration
Contents left inside vehicles unless specifically insured
Unauthorised driving or private use
Contractual promises broader than your legal liability
The cost of redoing defective work unless expressly covered

Realistic claim example

A customer’s car falls from a workshop lift

A sedan is incorrectly positioned on a two-post lift and falls while the workshop is replacing its clutch.

How cover may respond: The customer-vehicle section may cover the resulting body and suspension damage, subject to the custody cover and excess.

Important: The failed lift itself and the clutch job are separate exposures; maintenance records may be requested.

Who needs this cover

Any business taking possession of customer vehicles
Mechanical and auto-electrical workshops
Panel beaters, tyre shops and fitment centres
Car washes, valet businesses and parking operators
Dealers storing vehicles on consignment

Information insurers require

Maximum vehicle count and total value at risk
Highest individual vehicle value
Job cards, intake inspections and customer authorisation controls
Key storage, access logs, CCTV and alarm arrangements
Overnight storage and overflow parking details

What affects the premium

Maximum accumulation and vehicle profile
Premises security and natural-hazard exposure
Type of work performed
On-road use and driver controls
Claims record and requested excess

Relevant trade pages

Cover should match the way you trade

Workshop & Repairs Insurance Car Wash & Valet Insurance Auto Electrician Insurance

Get cover based on your actual risk

Tell us what vehicles you handle, where they are kept and how they are used. A specialist can compare suitable terms and explain the important conditions before you bind cover.

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This is a general explanation, not advice or a policy contract. Cover is subject to the insurer’s schedule, wording, limits, excesses and conditions.