When You Hand Over the Keys: Valets, Garages, Shops and Washes

On this page:

• Parking lots and garages
• Valets
• Repair shops
• Car washes
• Dealers and loaners
• What to do every time
• At a glance

Every week you probably hand your car, or at least your keys, to someone else: a garage attendant, a valet, a mechanic, a car wash. Most of the time nothing happens. When something does, the fine print on a ticket, a sign on the wall and a state statute all have something to say about who pays.

Parking lots and garages

That ticket stub that says the operator is not responsible for damage is not automatically the last word. Under Civil Code section 1630, a printed parking or storage contract is not binding on the vehicle owner, in whole or in part, unless:

• the words "This contract limits our liability—read it" are printed at the top in capital letters of 10-point type or larger;
• every provision is printed legibly in 8-point type or larger; and
• a copy in large type, in an area at least 17 by 22 inches, is posted conspicuously at each entrance to the lot.

Accepting the parking does not waive these requirements, and cities may adopt rules that are at least as strict. Section 1630.5 goes further: no parking contract can exempt the operator from liability for the theft of a vehicle when the operator required the keys to be left in it.

Valets

When a valet, who is the employee of a parking business, is driving your car and causes a crash, Insurance Code section 11580.9 makes the parking business's liability policy primary. Damage to your own car is a separate question. You can claim against the business, or use your own collision or comprehensive coverage and let your insurer pursue the business for reimbursement. How that plays out varies by insurance company, so report the damage to the valet company before you leave and get the incident in writing.

Repair shops

Repair shops are businesses that repair, service and road-test vehicles, so the same section of the Insurance Code makes the shop's liability policy primary if one of its employees crashes your car on a test drive.

California also regulates what a shop can charge. Under Business and Professions Code section 9884.9, an automotive repair dealer must give you a written estimated price for parts and labor for a specific job, may not begin work or run up charges until you authorize it, and may not charge more than the estimate without your consent, obtained after it learns the estimate is not enough and before doing the extra work. If you agree to extra work by phone, the shop has to record the date, time, who authorized it and the added cost.

Car washes

Car washes commonly post signs disclaiming damage to antennas, mirrors, aftermarket parts and the like. Whether a sign protects the business in a given case depends on the facts, including whether the equipment malfunctioned or an employee was careless. Your practical steps are the same either way: point out any damage before you drive away, ask for a manager and a written incident report, and photograph the car on site. If the business will not pay, your own collision or comprehensive coverage may, depending on how the damage happened and your policy terms.

Dealers and loaners

The rule flips when you are the one driving the business's car. If you take a test drive or drive a dealer's loaner while yours is in for service, Insurance Code section 11580.9 makes the dealer's policy excess over your own insurance. Your policy pays first, so before you accept a loaner, confirm that your coverage extends to a car you do not own.

What to do every time

1. Take quick photos of all four sides and the dashboard before handing over the keys.
2. Keep the ticket, claim check or work order. It proves who had the car and when.
3. Walk around the car before you leave and raise any damage on the spot, not the next day.
4. Get an incident report with the manager's name and the business's insurance details.
5. Tell your own insurer promptly if the business does not resolve it quickly.

At a glance

If you want to know how your own policy would respond when your car is damaged in someone else's care, you can have a licensed broker check it.