Garagekeepers coverage provides coverage for loss to customers' autos while in the insured's care, custody, or control, but only if the insured is legally liable.

Garagekeepers coverage provides coverage for loss to customers' autos while in the insured's care, custody, or control, but only if the insured is legally liable.

• A. It covers any damage regardless of liability
• B. It excludes damage to customers' autos
• C. It provides coverage to customers' autos while in the insured's care, custody, or control if the insured is legally liable
• D. It covers only the insured's own autos

Answer: (C)

Garagekeepers coverage protects customers’ autos while they’re in the hands of a business (like a repair shop, service station, or parking facility). The key point is that this protection only applies if the insured is legally liable for the damage. In other words, the insurer would cover the loss to the customer’s vehicle up to the policy limits only when the business is at fault or negligent. If there’s no legal liability, the coverage doesn’t apply. This coverage is specifically for customers’ cars in the insured’s care, custody, or control, not for the insured’s own vehicles. For example, if a customer’s car is damaged due to the shop’s negligence while it’s being serviced, garagekeepers liability would respond. It does not provide coverage for all damage regardless of fault, nor does it cover the insured’s own autos.

Garagekeepers coverage protects customers’ autos while they’re in the hands of a business (like a repair shop, service station, or parking facility). The key point is that this protection only applies if the insured is legally liable for the damage. In other words, the insurer would cover the loss to the customer’s vehicle up to the policy limits only when the business is at fault or negligent. If there’s no legal liability, the coverage doesn’t apply. This coverage is specifically for customers’ cars in the insured’s care, custody, or control, not for the insured’s own vehicles. For example, if a customer’s car is damaged due to the shop’s negligence while it’s being serviced, garagekeepers liability would respond. It does not provide coverage for all damage regardless of fault, nor does it cover the insured’s own autos.