Loaner Vehicle Insurance
Loaner Vehicle Insurance for Auto Repair Shops
Offering loaner or courtesy cars is a great way to take care of your customers — but it also creates a unique liability exposure for your business. If a customer crashes your loaner car, injures another driver, or causes property damage, your shop could face serious financial and legal consequences without the right insurance in place.
At ISE Insurance Services, we specialize in loaner vehicle insurance and garage liability solutions designed specifically for automotive repair and service businesses. With more than 30 years of industry expertise, we understand the risks, the coverage gaps, and the best solutions to protect your shop before you hand over the keys.
Why Loaner Vehicles Require Specialized Insurance
Many shop owners assume their garage liability or garagekeepers policy automatically covers customer-driven loaner vehicles — but that is often not the case. In many situations, a loaner vehicle needs separate or endorsed coverage under a commercial auto or customer-use policy to avoid major uncovered losses.
Without proper loaner coverage, your business may be exposed to:
- Accidents caused by customers driving your vehicles
- Injury or property damage claims
- Litigation involving third parties
- Gaps between customer insurance and your business policy
- Physical damage to your owned loaner fleet
Who This Coverage Is Designed For
This coverage is ideal for:
- Auto repair shops
- Full-service mechanical shops
- Independent service centers
- Collision and body shops
- Specialty automotive repair businesses
- Dealerships offering temporary service loaners
If your customers leave in your vehicle — even temporarily — you need proper loaner vehicle protection in place.
Core Coverages That Protect Your Business
ISE can help you structure the right protection using a combination of:
- Garage Liability: Covers bodily injury and property damage arising from your business operations — including customer-driven exposures when properly endorsed.
- Garagekeepers Legal Liability: Protects customers’ vehicles while in your care, custody, or control (such as during repair or storage).
- Commercial Auto (Loaner Fleet Coverage): Insures your owned loaner vehicles for liability and physical damage when customers are driving them.
- Customer-Drive-Other-Car / DOC Endorsements: Extends liability protection to your customer while operating your loaner vehicle.
- Hired & Non-Owned Auto (when applicable): Covers vehicles your business uses that it does not own, rent, or borrow.
Together, these coverages close the gaps that standard policies often leave behind.
Common Mistakes Shop Owners Make with Loaner Cars
- Assuming the customer’s personal auto policy will pay first
- Believing garage liability automatically covers loaner vehicles
- Lending vehicles without proper agreements or coverage
- Not coordinating loaner coverage with garage, auto, and DOC endorsements
A single uncovered accident can jeopardize your business — and your loaner program.
Why Choose ISE Insurance Services
- 30+ years of commercial insurance experience
- Automotive service and repair industry specialists
- Exclusive and semi-exclusive program access
- Personalized guidance, responsive service, and knowledgeable support
- Coverage available in: AZ, CA, NV, ID, UT, IL, MO, KS, TX, OR, IA, IN, MI, MN, NE, NM, SC, WI, and WY
Our team understands how loaner programs work — and how to insure them correctly.
Protect Your Business Before the Next Loaner Leaves the Lot
Request a quote on our website or call 888-945-1495 to speak with a commercial insurance specialist. We’ll help you set up loaner vehicle coverage that fits your business and keeps you protected.
Related Coverages
FAQ
Do I need special insurance for loaner vehicles?
Yes. Loaner vehicles are not always covered under standard garage or garagekeepers policies. They typically require commercial auto or specific endorsements for customer use.
If a customer crashes my loaner car, whose insurance responds?
In many cases, your business policy responds first unless structured otherwise. Proper endorsements help eliminate costly coverage gaps.
Does garagekeepers insurance cover my loaner vehicles?
No. Garagekeepers covers customers’ vehicles in your care — not the vehicles you own and provide as loaners.