When you’re running a busy bodyshop, courtesy vehicles are what keep your customers and your business moving. But without the proper insurance, you’re running the risk of ruining all that good work.

In this guide, we break down what kind of insurance you need, how to manage it effectively, and how to keep your costs down

Do You Need Special Insurance for Courtesy Vehicles?

Yes. Courtesy cars need to be insured separately from your normal business policy. Typical insurances may cover vehicles under your roof, but once they’re out on the road with customers, that’s where it ends. 

You’ll need either:

  • A courtesy car extension to your existing motor trade policy
  • A standalone courtesy car insurance policy

This type of cover protects your vehicle, your business, and your customer in the event of an accident.

Key Coverage Types – Third Party Vs Comprehensive

Courtesy Car Insurance Explained

As you’re probably aware, there are two main types of cover:

  • Third Party Only (TPO): This is the legal minimum. It covers damage to third parties (other vehicles, property, or injuries) but not your own vehicle. This is risky for bodyshops, as you’re loaning the car out and need it to be reliable for the duration of the lease.
  • Comprehensive: This is the most common and safest choice for courtesy cars. It includes:
    • Third-party damage and injuries
    • Fire and theft
    • Accidental damage to the courtesy vehicle itself

      Always check if your policy includes a like-for-like replacement and whether there are driver age restrictions.

How to Reduce Insurance Costs for Your Fleet

Insurance costs across a fleet of courtesy vehicles can cause your head to spin. However, it’s kind of essential. Worry not, we have some tips to try and keep your costs down.

  • Use telematics or dash cams to monitor driver behaviour
  • Assess driver age and licence type
  • Limit usage periods and ensure prompt returns

Bundle cover through approved providers for volume discounts

Best Practices for Managing Courtesy Vehicle Insurance

Remember, good management can prevent claims, reduce downtime, and keep customers happy. So, stay on top of your game at all times.

Keeping Track of Driver Usage & Liability

Always document the following before handing over a courtesy car:

  • Driver’s licence and proof of insurance (if required)
  • Vehicle condition report (photos are ideal)
  • Terms of use agreement (mileage, fuel, return times)

This helps protect you against misuse, damage, or liability issues.

Partnering with Quality Vehicle Providers

Vehicle Procurements help bodyshops manage fleets, reduce downtime, and stay fully compliant by working with approved courtesy car providers to help simplify insurance, maintenance, and compliance. These providers often:

  • Include insurance in the rental agreement
  • Offer vehicles pre-approved for replacement use by insurers

Ensure full GDPR-compliant tracking and paperwork

Final Thought

Don’t just jump at the next deal you see. Make sure you invest in clear policies, proper tracking, and reputable partners, and you’ll stay on the road to success.