Garage Auto OAP #4 Notes
Remember:
The co-insurance clause on a Garage Auto policy is based on the total number of customer's vehicles declared by the insured. It is vital that the insured accurately report the maximum number of Customer owned vehicles which may be on their lot at their busiest day of the year.
The deductible is occurrence based, meaning that if a hail storm damages several vehicles that only one deductible will apply to the loss.
Open Lot Theft: without the proper endorsement theft of parts from vehicles will not be covered.
Only attached equipment is covered under a Garage Auto policy. So, if the insured has a snow plow that is not currently attached to the vehicle it wouldn't be covered while it sits on the lot. Important to insure that sort of thing as equipment on a property policy.
Important that if the insured's family members are going to drive vehicles that they be added to the policy by Endorsement OEF #76 "Additional Insured" - so, this would most commonly apply to a young driver or spouse of the insured.
OEF #71 excludes "owned autos" from the policy. Any vehicles that may be owned by the legal entity which operates the Garage must therefore be insured on an OAP #1. This would be the case for a repair garage that does not offer "loaners" and which does not engage in the buying and selling of used vehicles.
When a Garage Auto policy includes "owned vehicle" coverage it automatically extends to any and all vehicles that are registered in the name of the legal entity which operates the business. This would most commonly be a corporate entity, but in rare cases might be just the name of the individual, sole proprietor who has chosen for some reason not to incorporate.
OEF #74 "Open Lot Theft" endorsement brings in Comp cover for theft of parts (i.e. hub caps, stereos, tires/rims) from an owned vehicle that is stored on an open lot or unroofed surface.
Remember that if the insured takes customer's vehicles off-site (example: to a car detailing shop or collision repair centre) the coverage is limited to no more than 4 vehicles at any given time.
Edited: Nov 11/15
Spoke to JD at Travelers to discuss pink slips. He reminded me of some important things:
They will issue pink slips for a used car dealer - indicating all vehicles registered to the named insured. Makes sense as they would need to provide to a customer on a test drive. Same would hold true for a repair garage that has a loaner car. They rate based on number of employees and their specific job function; number of service plates; number of dealer plates; gross annual sales; number and value of vehicles whether owned or customer.
If the used car dealer keeps any of the cars for regular use by employees or owners the insurer needs to know that and what they are used for. Especially true of spouses or children of the owner will have use of a vehicle (see number 5 above)
