Written by Michael Foote, Insurance Expert
Who Pays If a Customer Claims You Damaged Their Vehicle?
Even the most careful motor traders can find themselves accused of damaging a customer’s car. It might be a scratch that wasn’t there before, a dashboard warning light that appeared after a service, or a tyre sensor that no longer works after fitting new wheels.
If a customer points the finger, in this article we look at what happens next and who ends up footing the bill?
First question: are you liable?
The first thing an insurer (and you) will want to know is whether the damage was actually caused by you or your team. In many cases, the dispute centres around:
- Lack of a pre-inspection checklist
- Verbal misunderstandings about what work was agreed
- Allegations of rough handling or carelessness
Without documentation or before-and-after photos, it can quickly become your word against theirs.
Author note: do you photograph all vehicles before you begin work? This could be crucial evidence if a claim of this nature arises.
How insurers deal with small claims
If your policy includes public liability or defective workmanship cover, insurers may assess the complaint and decide whether to:
- Settle the claim on your behalf
- Dispute liability and reject the claim
- Offer partial payment based on shared responsibility
For example, if you’re working as a mechanic and a customer says you caused an electrical fault, the insurer will likely ask for diagnostic notes and job records to support your position.
Tyre fitters face particular risks
Traders who work on wheels and suspension components are often blamed for post-job issues like vibrations, marked alloys, warning lights, or tyre pressure system failures.
Our page on insurance for tyre fitters offers insurance information specifically for business who fit tyres and why it’s important to log every step of the job, even for routine fittings.
Steps to protect yourself
- Always inspect and document the vehicle before starting work
- Use job sheets that confirm what was agreed and what was done
- Get the customer to sign off any visible marks or damage
- Take photos if anything looks questionable before or after
The more evidence you have, the easier it is to defend yourself or to get your insurer to step in if needed.
