They're referring to liability insurance, which means their insurance will cover someone else's stuff if they damage someone else's car while driving your car. That has nothing to do with covering your car for damages. However, their insurance also covers your car while it is in their "care, custody, and control." If they damage it, or if the shop catches on fire, etc. their insurance will cover your car.

That said, if it were my car, I would also insure it myself. That way, if something does happen, and you don't like the way their insurance is handling things, you can turn it over to your own insurer. Lots of collector car companies offer coverage for projects/cars undergoing restoration. It's cheap, too.

I'm preparing to send one of my cars to a restoration shop. I've got their agreement here, and it says they cover liability on it while it's in their possession, but that I should also cover it to have "the best chance to recoup your full investment in your car".

It kind of seems to me like language that his insurance company requires so they can share liability with my insurance.

If it was your car, would you go ahead and insure it? It's nowhere near finished; I expect at least 6 months until I get it back. I've got about $30k in the car and parts so far, but never felt like I needed insurance because it's all safe in my garage.

(It's a reputable tax-collecting (ouch) shop with employees, not some dude working in his garage on weekends)

Thanks!!

Absolutely carry insurance on your car. Also never ever fully trust ANY shop owner I don't care who they are even if you have everything in writing...it had better be in a contract notarized and written up by a lawyer. Cover your six, they do not care and you are just another payday, never forget you are not friends....you are a customer. Trust me on this, if something happens it will be your responsibility, even if they do bad work, and every other resto shop in town will be on their side. You are truly alone when something happens with these guys, as it should be, so treat them the same, trust nothing.

Reputation does not matter, you still may be the next victim no matter how "good" the shop may be. With insurance make them prove it with paperwork.

Reputation does not matter, you still may be the next victim no matter how "good" the shop may be. With insurance make them prove it with paperwork.

There are no dumb questions, we all want a perfect relationship with the restoration/paint shop, sometimes things happen you cannot know as an individual on the outside about business internals so you have to cover yourself. Good luck, keep an eye on them, and I hope it all goes well.