Who pays for vehicle damage that happens at the body shop? (Liability & Insurance in (2024))
Who pays for vehicle damage that happens at the body shop? A mechanic can be held liable for direct vehicle damage and the body shop will pay for service-related incidents. Knowing when insurance pays for a vehicle damaged at the repair shop helps with unexpected expenses as filing a claim can increase premiums by 10%.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
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UPDATED: Nov 7, 2024
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We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Nov 7, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
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Who pays for vehicle damage that happens at the body shop? Because of a hold harmless agreement, the repair shop is not always liable for damages or vandalism to the car, and filing a damage claim could result in a 10% increase in insurance premiums.
Have you ever needed to look up answers like, “If a mechanic damages your car, are they liable?” or “What to do if a shop damages your car?” These situations, including accidental car repair issues and automotive shop accidents, occur.
Auto repair shops use service agreements and service level agreements to protect their business by limiting liability. Start comparing total coverage auto insurance rates by entering your ZIP code above.
- If the car is damaged at the repair shop, they will cover service-related damage
- Understanding how to handle an auto body shop insurance claim can be critical
- Hold harmless agreements transfer damage costs from shops to your insurance
Auto Repair Shop Liability
Sadly, you’ve found yourself thinking, “What to do if a mechanic damages your car?” It does happen, and it can pay to know what to do if a body shop damages your car during service or if a mechanic damaged your car during repair. The liability coverage section in a mechanic’s insurance policy pays for damages to a customer’s vehicle which the repair shop is liable for causing.
However, if the primary damage is vandalism, the car was damaged by hail while at the repair shop, or car damage while at the repair shop (i.e., a light pole falls on your car while on their lot), the mechanic may not be considered liable.
Read More: Best Liability-Only Car Insurance
If the shop did not contribute to the damage by either causing it directly or leaving the car in a situation where vandalism was easy or even likely, then the mechanic’s insurance policy may not have to pay your claim. Filing a claim for such damage can result in a premium increase of 10%, depending on the insurer and your claim history.
Top 10 Insurance Companies with Body Shop Coverage| Insurance Company | Direct Repair Program (DRP) Features |
|---|---|
 | Extensive DRP Network, Lifetime Repair Guarantees at Partner Shops. |
 | Auto Repair Xpress Program With Fast Service and In-House Geico Adjusters at Select Locations. |
 | Service Centers With Repair Shops That Guarantee Repairs as Long as You Own the Vehicle. |
 | Good Hands Repair Network Offers Expedited Repairs With Certified Parts and Quality Standards. |
 | Guaranteed Repair Network Provides Lifetime Guarantees on Repairs Done at Partner Facilities. |
 | On Your Side Auto Repair Network Ensures Quality Repairs With a Limited Lifetime Guarantee. |
 | Premier Provider Network for Military Members, With Repair Guarantees and Certified Partner Shops. |
 | Circle of Dependability Program Ensures Certified Repairs and Preferred Rates. |
 | Quality Repair Program With Vetted Body Shops Offering Quality Repairs and Parts Warranties. |
 | Trusted Repair Program With High-Quality Repairs and Customer Support Throughout the Claims Process. |
If the repair shop is not responsible for the damage, then your own car insurance must pick up the bill unless the auto shop has expanded its insurance to cover any damage to vehicles in its custody and control.
With expanded coverage, the mechanic will likely pay for the repairs to your car regardless of what happened. Without it, the auto shop will only pay if it contributed to the damage.
Ty Stewart Licensed Insurance Agent
You are entitled to ask what is the auto body shop insurance coverage and what security measures it puts in place to protect your vehicle so you can make sure you are comfortable leaving your car.
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Hold Harmless Agreements
Hold harmless agreements are another way out of paying for damage for auto mechanics and repair shops that want to push the coverage for any damage to your vehicle back to your policy.
A hold harmless agreement states that you will not hold the auto repair shop liable for anything that happens to your car while it’s there. Once signed, a hold harmless agreement, which can be as small as one or two sentences in fine print found at the bottom of a repair agreement, releases the auto repair shop from any liability.
Rules pertaining to hold harmless agreements can vary depending on the state law. In fact, some states only require that shops post a sign saying, “We are not responsible for theft or loss of property for vehicles left at this location” in order to avoid liability if your car got broken into while at the repair shop. Others require you to specifically sign an agreement.
Read More: Vehicle Theft Claim
You will need to discuss the body shop’s insurance policy to find out what it covers, specifically asking if it covers customer’s vehicles in its custody and control.
Suing an Auto Repair Shop
If there were neither a hold harmless release nor a sign disclaiming liability, then you may be able to take the auto body shop to court if they do not agree to cover a claim through their business insurance.
Be prepared to prove that you didn’t release them from liability and be prepared to show how much the body shop will pay. You won’t be able to simply say, “They took my car for service and they damaged it.” There will need to be evidence of the vehicle damaged at the repair shop and what was done to the vehicle while it was in their possession.
In the event that they have no insurance that would cover the damage to your vehicle, your insurance company may pay to repair the damage and then use its subrogation rights against the auto repair shop if there was any negligence on their part.
Case Studies: Car Damage at the Body Shop
The following case studies illustrate different situations where vehicle owners had to navigate insurance claims and legal challenges after incidents at auto body shops.
Case Study #1: The Unforeseen Vandalism
John took his car to a local auto shop for some repairs after a minor accident. While the car was at the shop, vandals damaged several nearby vehicles, including John’s car. Frustrated, John wondered who would be responsible for the damage caused by the vandals.
He consulted with Car Insurance Attorney Rachel Thompson, who reviewed the repair shop’s insurance policy and found that it did not cover damages caused by third-party acts of vandalism. Rachel advised John to contact his own insurance company and use his auto insurance to handle the repairs, as the auto body shop was not liable for the damage.
Case Study #2: The Hidden Hold Harmless Agreement
Laura entrusted her car to a reliable body shop for some routine maintenance. When she returned to pick up her vehicle, she noticed scratches and dents that were not there before. The auto shop claimed no responsibility and showed Laura a hold harmless agreement she had signed during her previous visit, releasing them from any liability.
Frustrated and uncertain about her rights, Laura sought legal advice from Auto Attorney James Miller. James investigated the case and discovered that the hold harmless agreement was not prominently displayed, and Laura had not fully understood its implications. With James’s help, Laura sued the auto repair shop, claiming that the agreement was not appropriately presented and, thus, not legally binding.
Case Study #3: The Negligent Mishap
Jennifer left her car at the body shop for auto repair. However, while test-driving the vehicle, one of the mechanics accidentally collided with another car, causing significant damage to both vehicles. Uncertain about the responsible party, Jennifer sought guidance from Auto Insurance Lawyer Mark Davidson.
Mark carefully reviewed the circumstances surrounding the accident and found that the mechanic’s negligence was the primary cause of the collision. He negotiated with the mechanic’s insurance company, demonstrating their liability, and secured compensation for Jennifer’s car repairs. With Mark’s help, Jennifer successfully recovered the damages without having to go to court.
These case studies highlight the complexities of determining liability and the importance of understanding your rights and coverage options when dealing with auto body shop damages.
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Understanding Liability and Your Options
Who’s financially liable for damage to your car that happens at the body shop depends on a few different things. Not only is the cause of the damage relevant, but, perhaps more important is what you agreed to.
If the body shop actively damaged your vehicle, they will likely have to pay.
If the damage happened due to an accident or another party, though, you may have agreed to hold them harmless or otherwise waive their responsibility.
Did we answer all the questions you had about who pays for car damage that happens at the body shop? If you decide to go after an auto repair shop for damages to your car, you should have the advice of an experienced car insurance attorney before taking action.
Avoid expensive auto insurance premiums by entering your ZIP code below to see the cheapest rates for you.
Frequently Asked Questions
What to do if a repair shop damages your car?
Document the damage, notify the shop, and request their liability coverage. If they refuse, consider using your insurance or seeking legal help.
Is a mechanic liable for damages from repairs?
Yes, mechanics are liable for damages caused by negligence. Their insurance should cover the repair costs if proven. Explore your auto insurance options by entering your ZIP code into our free comparison tool below today.
What to do if mechanic damages your car?
Report the damage immediately, gather evidence like photos, and discuss compensation through their insurance policy. Learn why auto insurance rates go up if you decide to file a claim.
What to do when body shop messed up?
Request that the body shop fix the issue at no cost. If they refuse, consider filing a complaint or seeking legal advice.
Are body shops required to report damage?
Generally, no. Body shops are not required to report damage unless local laws or insurance regulations mandate it.
Are mechanics insured to drive any car?
Yes, most mechanics are insured under Garagekeepers insurance, covering test drives and handling customer vehicles during service. Understand what is a car insurance deductible and how does it work if a claim is necessary.
Are mechanics liable for damages from repairs?
Yes, mechanics are liable for damage resulting from negligence or mishandling during repairs. Liability typically involves their insurance.
Are repair shops liable for stolen goods?
Repair shops are usually not liable for stolen goods unless they failed to secure the vehicle properly, demonstrating negligence.
Can I get my car fixed without insurance?
Yes, you can pay for repairs out-of-pocket. This can be beneficial to avoid insurance rate increases. Save money by comparing online car insurance quotes to make sure you’re not overpaying.
Can I sue a mechanic for messing up my car?
Yes, you can sue if their negligence caused damage. Gather evidence and consider consulting an attorney if necessary.
Can I sue an auto repair shop?
Yes, if the repair shop caused damage or failed to perform repairs properly. Documentation strengthens your case.
Can I sue an insurance company for not fixing my car?
Yes, if the insurance company unreasonably denies your claim. Consider consulting a lawyer for advice on bad faith claims. Learn how to get low-cost car insurance with driver discounts to offset any financial burdens.
Can I take my car to any body shop after an accident?
Yes, you can choose any body shop. However, verify with your insurance company to ensure coverage.
Read More: Is full coverage really full?
Can insurance refuse to pay for car repairs?
Yes, insurance can refuse if the damage isn’t covered or if policy terms were violated.
Can you sue a mechanic for damaging your car?
Yes, you can sue if you have proof of negligence. Collect documentation and consider legal action if necessary.
If you’re just looking for coverage to drive legally, enter your ZIP code below to compare cheap auto insurance quotes near you.
Find the right lawyer for your legal issue.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.