Written by Michael Foote, Insurance Expert
A common insurance-related scenario for motor traders is damage to a customer’s vehicle while it’s in your possession. Whether you’re repairing it, test driving it, or simply storing it overnight, your policy needs to respond properly if something goes wrong.
This guide explains how these claims typically work and what you’ll need to support them.
What Is ‘Care, Custody and Control’ (CCC)?
Most motor trade insurance policies include cover for vehicles in your care, custody and control, meaning you’ve taken responsibility for them during the course of your work.
This applies if you’re:
- Servicing or repairing a car
- Holding it for collection or drop-off
- Valeting or inspecting it
- Test driving it with permission
If the vehicle is damaged during this time, for example, scratched, dented, or stolen, a CCC claim may be made.
You can find more about this type of cover on our mechanics insurance and MOT station insurance pages.
Common Causes of Damage
These are typical situations that lead to claims:
- A vehicle falls from a ramp or lift
- An employee reverses into a barrier while moving it
- A fire breaks out in the workshop
- A car is stolen from a forecourt overnight
The policy will usually respond if:
- The damage occurred while the vehicle was in your care
- It wasn’t caused by a policy exclusion (e.g. unauthorised driver)
- Security measures were followed as required
What Insurers Usually Ask For
When you make a CCC claim, you’ll typically need to provide:
- Proof that the vehicle was in your possession at the time
- A signed job card or vehicle intake form
- CCTV footage or photos (if available)
- A clear account of what happened
Some insurers will also ask for your premises security setup or storage process, especially if the vehicle was stolen or vandalised.
Test Drive and Road Use Incidents
If damage occurs during a test drive, the road risk part of your policy usually applies. However, this depends on:
- Whether the driver was listed on the policy
- The type of cover (third party or comprehensive)
- Whether the journey was business-related
If you allow staff to move vehicles, make sure they’re named drivers on the policy. Not all insurers allow unnamed employees to drive customer cars, even for short distances.
What Can Void a Claim
A claim may be rejected if:
- The vehicle was left unsecured or unattended against policy conditions
- It was moved or used without the customer’s permission
- The driver was not authorised or properly insured
- The incident wasn’t reported in time
To avoid this, review your documentation process for incoming vehicles and make sure all team members understand what the policy covers. If you need assistance from a specialist broker, please submit the quote form below and they will be delighted to answer any questions you have.
