Car Wraps and Insurance: What Every Business Needs to Know

Car Wraps and Insurance: What Every Business Needs to Know

Vehicle wraps and detailing are a common way for businesses to promote themselves and turn their company vehicles into moving billboards. While car wraps can be fantastic for marketing, if you’re considering branding your personal or commercial vehicles, it’s important to be aware how your car insurance could be affected.

What is a vehicle wrap?

A car wrap is the process of turning a vehicle into a moving billboard by completely or partially covering it in a printed vinyl decal. While some people settle for applying their business logo or advertising to the paintwork of their vehicle, others prefer to add wraps instead. This could be for cost, appearance, to save time or a number of other reasons.

Car wraps have a number of advantages over painting and unlike a paint job they can usually be easily removed without affecting the car’s original appearance or resale value. Car wraps are also usually easy to maintain and can keep their appearance for longer than paint.

What impact does a vehicle wrap have on your insurance?

What many people don’t realise is that a vehicle wrap may often treated differently by insurance companies than a simple paint job. Because something has been added to the vehicle, often a car wrap will be classified as an accessory, which means that it may not be automatically covered under some insurance policies.

This can affect you if you need to claim for damage to the wrap itself and even when it comes to claiming for damage to the vehicle underneath the wrap. We have seen a case where vehicles were damaged by a storm, but the wraps protected and disguised some of the panel damage, which was only found later.

It wasn’t until the wraps were removed that the damage was revealed and because the client hadn’t informed the insurance company of the wraps and they weren’t listed on the policy, whether they could claim depended on whether the insurer determined the wraps were sign writing or an accessory.

Fortunately in this case we were able to use our relationship with the insurer and our industry knowledge to negotiate a positive client settlement, but this may not always be the case.

If you use vehicle wraps to promote your business, make sure you list them on your insurance policy for their replacement value and be aware of the potential consequences if you need to make a claim.

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