How Much Does Valet Insurance Cost Basic Overview And Information

Helen Skeates
Helen Skeates
13 min read

To what extent does valet insurance cost? Valet parking insurance is typically priced between $37 and $59. Nonetheless, costs can change based on factors like proximity to major population centers and general levels of security. The purpose of this article is to provide a brief overview of valet parking insurance and its associated costs.

So, let’s start with the basics: what exactly is valet parking insurance? Conveniently leaving and retrieving a customer’s vehicle at the end of their shift is just one of the many benefits offered by valet parking services. Valet parking is convenient because it eliminates the need for drivers to find a place to park and also because it keeps vehicles out of harm’s way. Those with mobility issues can skip the hassle of walking far distances to and from their vehicles by using this service.

Valet parking is a service provided to customers as a courtesy by many businesses in the tourism, hospitality, healthcare, hospitality, art, dining, and retail industries.

Keep reading; there’s a lot more info you need to know about this.

Parking Lot Accident Statistics

The vast majority of valet parking incidents take place in parking garages rather than on sidewalks. It’s common knowledge that parking garages are hotspots for car crashes.

  • Nearly 300,000 car accidents occur annually as motorists try to navigate parking lots.
  • Based on data collected from a “Not in Traffic” surveillance system in 2007, the following were found to be causes of non-traffic crashes, such as single-vehicle and two-vehicle collisions in parking lots:
    • As many as 98,000 hurt
    • 1,159 lives lost
  • Backing over pedestrians or cyclists accounted for roughly half of these non-traffic crashes.

Having the appropriate business insurance and liability coverage is crucial whether your company provides valet parking by in-house employees or has contracted with a valet parking firm to handle customer parking needs.

How Much Does Valet Insurance Cost? Basic Overview And Information! - Krostrade

What Does Good Valet Parking Insurance Cover?

Valet parking insurance primarily addresses liability concerns. Given the stakes, both in terms of property damage to vehicles and human lives, it is essential to have adequate liability coverage in place.

These issues will be prioritized by sound policies:

  • Liability to third parties: If a valet causes damage to someone’s car or to their person, this will pay for it. When a car hits a pedestrian, it can cause serious injuries.
  • Liability of parking garage owners: The valet service is responsible for any damage done to a customer’s vehicle while it is in their care in the parking lot. It covers any vehicle that is in their “care, custody, and control” in the event of an accident or theft. ”
  • Worker’s comp: This plan covers medical expenses and lost wages for employees like valets who suffer injuries or illnesses on the job. It helps compensate for time away from work while healing.

The cost of valet parking insurance can vary widely depending on a number of factors, including the nature of the business, the location (private vs. public lot), and the availability of self-parking.

Make it a point to ask about money-saving options when you contact a free agent. An independent insurance agent has the freedom to shop around for the best price on the coverage you require from multiple providers. If your company has implemented a safety program for its employees, for instance, you may be able to negotiate lower insurance premiums with the help of your agent.

What Valet Parking Insurance Does Not Cover

When it comes to valet parking, many things can go wrong that aren’t the valet company’s or property owner’s fault. Customers using your valet services should be made aware that they are responsible for the following:

  • Crimes of vandalism or theft: In most cases, your company will not be held responsible for car theft or vandalism if your valet staff followed all safety procedures when parking a customer’s vehicle. The damage would be covered by the driver’s own auto insurance policy.
  • Damage caused by the weather: Unless covered parking was promised but was not provided, your company or valet service has no responsibility for damage to a vehicle caused by weather (such as high winds, hail, lightning, flooding, or falling objects) while parked in an open lot.
  • Contents theft: Signage and parking receipts should make it clear that neither your business nor the valet service assumes any liability for items left in vehicles.

Many modern vehicles come with a valet key that allows the driver to lock the trunk or glove box, protecting any valuables stored there.

Important Considerations for Valet Services

Some things to think about when launching a valet service at a restaurant, hotel, or other establishment are as follows:

  • Concerns with the law: If you need help drafting your valet policy or figuring out how to explain the roles of the driver and valet to your customers, consulting an attorney could be a good idea. It’s important to keep in mind that pressuring clients to use valet parking is against the law.
  • Threats to security: Creating safety guidelines for your business, hired valet service (if applicable), and hired drivers is a crucial first step.
    • Think about making defensive driving a requirement.
    • It is crucial to thoroughly vet potential drivers to ensure they are licensed, have a spotless driving record, and have years of experience in the industry.
    • Create parking and traffic rules that will help prevent injuries. Parking arrows, orange cones, and other traffic control signage can greatly lessen the likelihood of accidents happening.
  • More coverage: Prior to meeting with an insurance broker, it’s important to give careful thought to the risks you face. Many slipups can occur when hired drivers are attempting to move vehicles as quickly as possible so that they can earn tips. Talk about extending your protection with an umbrella policy for your company. In the event of a catastrophic event that causes severe injuries or fatalities, this coverage can serve as an additional layer of liability insurance.

Get the best coverage for your needs and budget with the help of a local, independent agent who takes the time to learn about your business.

Valet Service Insurance (Cost & Coverage) | Elemental Risk Management

Where to Find the Best Valet Parking Insurance Quotes

Whether you hire a third-party valet service or handle everything yourself, valet parking insurance is a crucial factor to think about. If you want to start offering valet parking to your customers, you should secure the appropriate insurance policies to safeguard your business first. If you plan on using a third-party valet service, you should also check with your insurance agent to make sure they have sufficient coverage.

If you work with an independent agent in the Trusted Choice network, they will be able to assist you with all facets of your commercial insurance, including valet insurance. As a result of their expertise, insurance agents are in a prime position to evaluate your unique risks and present you with quotes from multiple carriers, from which you can select the plan that best meets your needs and your budget. Protect your business and its future by retaining a local member agent immediately.

How Much Does Valet Insurance Cost; Basic Overview

How much is valet insurance is a question frequently asked. To insure a fleet of vehicles at a valet parking service, you can expect to pay between $37 and $59 per month for basic liability coverage of $1,000,000 or $2,000,000. However, the aforementioned price is conditional on a number of factors such as location, financial resources, the veracity of the claims made, and more. Because of this, it could be different.

To a much greater extent than other businesses, valet insurance is vulnerable to the unexpected. There are a number of risks that are common to all businesses. While there are some generalizable examples, many depend on your particular industry.

Your place of business or other external facilities could be damaged by natural disasters like a tsunami or hurricane. Furthermore, theft and destruction can lead to substantial monetary losses as well. The staff members may also get into an accident while parking a car. This kind of coverage is consequently implemented.

Valet Services Require What Kind Of Insurance?

Depending on your company’s unique circumstances, there is a specific kind of insurance policy you should buy to protect your valet service from financial ruin. The types of advantages a valet parking business should receive depend on a number of factors, such as the commercial space and parking lots owned, the number of employees, and the legal authority under which the business operates.

Contact a licensed business insurance agent regularly to make sure you have the coverage you need. What follows is a brief overview of the most common forms of valet parking insurance:

Insurance #1. Automobile keepers

If you have stolen a car, you can get your money back by filing a claim with this insurance. Additionally, it covers vehicles that have been vandalized or accidentally damaged. Therefore, having this coverage is mandatory.

Insurance #2. Business assets

Outside of the main property, such as parking garages and office buildings, can be protected by this insurance. It covers the cost of repairs and upkeep in the event of data corruption, theft, or natural disaster. Investing in worker’s compensation insurance could help you recoup some of the money you lost due to a catastrophic event. In any case, you need to be aware of how to terminate your flood insurance policy.

Insurance #3. General liability

In the event of a death on your premises or as a direct result of your business’s operations, you must take legal action to protect yourself from any civil claims for damages or destruction of property that may be filed by third parties. It is imperative to maintain adequate levels of general liability insurance. This type of valet parking insurance covers the vast majority of your attorney fees in the event of any accusations or problems. You should probably be familiar with the concept of insurance defense.

Insurance #3. Compensation

If an employee is hurt on the job, this insurance will pay for their medical bills and lost wages. Additionally, having employees’ compensation insurance protects both your valets and your management staff in the event of an accident while parking a customer’s vehicle.

The expense of valet parking is significantly increased by the need for such extensive insurance coverage. Therefor it is important that you find out the cost of valet insurance. Your future self will thank you for taking this step now.

What Would I Need To Do If There Are Unwanted Damages Present On My Vehicle?

Upon retrieving your vehicle from the valet, your first order of business is to perform a thorough perimeter check. This is the first step in identifying any broken or missing components. Take pictures of the damage right away if you think the valet caused it.

Driverless in the parking lot. Automated Valet Parking | Mercedes-Benz Group > Innovation > Product innovation > Autonomous driving

In addition, you’ll need to collect the following data:

  • What is the name of the valet?
  • A contact number for the valet service
  • Important information about their insurance provider

You should report the incident to the authorities if the damage is significant or severe. This isn’t always possible, though, because some police departments won’t report accidents that happen in a parking garage.

Conversely, an incident report can help you file your complaint by lending credibility to your version of events. In addition, a day after the incident, you should call your insurance company and explain the circumstances so that they can help you determine who will pay for the damages.

Conclusion

I trust this article helped shed some light on the topic of valet insurance and its associated costs. What you can do in the future will be influenced by the data presented here. Therefore, keep in mind the information provided above.

In any case, the building’s carport can accommodate one or more vehicles if you need extra garage space.

Helen Skeates

Helen Skeates

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.