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Written by:
Prachi Singh
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Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.
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Laura Longero
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Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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If you park your car with a valet and it gets damaged, the parking/valet company will be at fault.

“Ultimately, if the car owner were to turn over his keys and while under the care, custody and control of the valet … his car was damaged, then the valet company would be responsible,” says Chris Hackett, spokesperson for the Property Casualty Insurers Association of America (PCIAA), an insurance industry organization.

How do the coverages work for parking lots and valets?

Depending on the type of insurance the parking company has, you might even be covered if the valet is not at fault. Parking operators carry one of two types of “garage keepers” liability insurance, says Kathy Phillips, senior vice president with Alliant Insurance Services, a national brokerage firm based in Newport Beach, Calif., which specializes in placing insurance for parking companies and other businesses.

The types of coverage are:

  • Direct and primary insurance obligates a parking company’s insurer to fix damage caused when your vehicle is in the hands of a parking valet, regardless of who is at fault.
  • Legal liability insurance covers only damage caused when a valet is negligent.

For example, if the valet’s employer has legal liability insurance and an employee is rear-ended while driving your car, the parking lot company’s insurance will not pay. But if the company’s insurance is the direct-and-primary type, you’re covered no matter who is to blame. In that case, the parking company’s insurance pays up, decides who was at fault, and reimburses the other driver’s insurance if necessary.

Will your insurance pay?

States don’t require parking companies to have insurance. Some cities do, but others do not. Los Angeles, for example, requires a police permit, business license, insurance and a parking lot license bond from parking company operators, Phillips says. Other cities may regulate parking lot companies only where they operate on public property.

Occasionally, customers must make claims on their insurance to cover damage from a valet.

“If it turns out that the valet company is bankrupt or had insufficient funds, there would be coverage under your own auto insurance,” Hackett says.

Of course, that assumes you carry collision coverage.

If you do have it, you can make life easier by filing the insurance claim on your own policy and letting your insurer pursue the parking lot company for reimbursement. In that case, you’ll have to pay the deductible, but you’ll get it back from your insurer if the valet or parking company is at fault.

Laura Longero

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Laura Longero

Executive Editor

Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.

John McCormick

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John McCormick

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John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

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Leslie Kasperowicz

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Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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Contributing Writer

Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.