Fleet Car Hit at a Sydney Car Wash or Service Centre

Who is liable when a business moves your car

When you hand your keys to a car wash or service centre, you are usually granting them permission to move your car. If their employee damages it, the business is generally liable under the tort of negligence and, in many cases, under bailment. Bailment means the business had possession of your car and must return it undamaged.

That holds whether the car was being washed at a facility in Alexandria or moved from a service bay in Artarmon. The key is that the business had control of the vehicle at the time of the incident. If a car wash attendant scrapes your Mercedes-Benz S500 L against a pillar, the car wash is the likely at-fault party, not your driver.

Liability can shift if the damage was caused by something outside the business's control, such as a third party hitting their lot. But in most cases, the business that moved your car is on the hook. Your own fleet insurer may still need to be notified, but the claim should ultimately be pursued against the at-fault business.

For a full breakdown of how not-at-fault claims work in NSW, see our guide on not-at-fault explained.

Getting the incident report and CCTV

Your first job is to secure evidence. Ask the car wash or service centre to complete an incident report before you leave the premises. If they refuse, write down the time, date, location, names of staff involved, and a description of the damage. Take photos of the damage, the surrounding area, and any signage about vehicle movement.

CCTV is critical. Car washes and dealerships often have cameras covering their bays and driveways. Request that they preserve the footage. In NSW, businesses are not legally obliged to hand over CCTV to you directly, but they must preserve it if they are on notice of a claim. Ask for a copy in writing and keep a record of your request.

If the police attend, get the event number. For minor damage on private property, police may not attend, but a report can still be useful for your insurer. Also collect the names of any witnesses, including other customers.

For a step-by-step checklist of what to do immediately after any incident, see first 24 hours.

Why the car wash's insurer may deny liability

Insurers for car washes and dealerships often deny liability by arguing the damage pre-existed, that the attendant was not negligent, or that their policy excludes damage caused while moving customer vehicles. They may also claim you signed a waiver when you dropped off the car.

Waivers are not always enforceable, especially if they attempt to exclude liability for negligence. But they can complicate matters. The insurer may also argue that the car was not roadworthy or that the damage was caused by a mechanical fault.

If liability is denied, you will need to push back with evidence: the incident report, CCTV, photos, and any witness statements. A letter of demand from a solicitor can help. For more on how insurers dispute claims, see common reasons an insurer disputes a hire car claim.

Remember that even if the car wash's insurer denies liability, your own fleet insurer may cover the repairs. You can then pursue the at-fault party for your excess and loss of use.

Notifying your own fleet insurer

Even if you believe the car wash is at fault, you should notify your own fleet insurer promptly. Most policies require you to report any incident that may give rise to a claim, regardless of fault. Failure to do so can void your cover.

When you call, make it clear that the incident occurred while the car was in the care of a business and that you intend to pursue the at-fault party. Ask whether they will handle the repairs or whether you should arrange your own. Some fleet insurers will repair the vehicle and then seek recovery from the at-fault party.

If you have a high excess, you may prefer to claim directly against the car wash. But your insurer still needs to know. Keep a record of the claim number and the name of the person you spoke to.

For more on dealing with insurers, see dealing with insurers.

Arranging a like-for-like replacement

While your company car is being repaired, you need a replacement that matches its prestige and performance. A standard hire car will not do if your fleet includes a Mercedes-Benz GLS or a Tesla Model Y. Like-for-like means the replacement should be of similar make, model, and specification.

If the incident was not your fault, you may be entitled to a credit hire replacement. Credit hire allows you to hire a comparable vehicle on credit, with the cost recovered from the at-fault party's insurer. This is common in NSW for not-at-fault claims.

Bookings are fulfilled by Drive Tribe (drivetribe.com.au), and this site is part of that group. You can check availability for a prestige replacement directly.

For a Mercedes-Benz S500 L, a like-for-like replacement might be another luxury sedan. For a GLS, a large luxury SUV. For a Tesla Model Y, an electric SUV. The replacement should be available for the duration of the repairs.

See our guide on like-for-like for more detail.

Luxury / Sedan / Self-drive or chauffeured

Mercedes-Benz S500 L 2015

The Mercedes-Benz S500 L is the long-wheelbase flagship limousine: a twin-turbo V8, air suspension and a rear seat built for stretching out. For a wedding, a milestone or simply...

335 kW Power4.8s 0-100RWD Drive5 seats SeatsPetrol FuelDrivers from 25Base Merrylands

See rate and availability

Luxury / SUV / 4WD / Self-drive

Mercedes-Benz GLS

Travel with the whole family in absolute premium comfort with the 2019 Mercedes-Benz GLS-Class. Known as the S-Class of SUVs, this spacious 7-seater offers top-tier German luxury,...

243 kW Power6.3s 0-100AWD Drive7 seats SeatsDiesel FuelDrivers from 20Base Mascot

See rate and availability

Recovering the cost from the at-fault party

If the car wash or dealership accepts liability, their insurer should cover the repair cost and your loss of use. Loss of use is the amount you would have earned or the cost of hiring a replacement while your car is off the road. For business fleets, this can be substantial.

To recover, you need to prove your loss. Keep invoices for the replacement vehicle, records of downtime, and any lost revenue. If the at-fault party's insurer refuses to pay, you can pursue the matter through the courts or via a letter of demand.

In NSW, the Small Claims Division of the Local Court can handle claims up to a certain amount. For larger claims, you may need legal advice. A solicitor can help you draft a demand and, if necessary, file proceedings.

For more on recovering costs, see fleet loss of use claims NSW.

If the attendant was unlicensed

If the person who moved your car did not hold a valid driver's licence, the car wash or dealership may be in breach of their insurance conditions. This can complicate your claim. The business may be liable for negligent hiring or supervision.

You should ask for the name and licence number of the attendant. If they refuse, note it in your incident report. An unlicensed driver does not automatically mean the business is liable, but it strengthens your case for negligence.

If the business's insurer denies cover because the driver was unlicensed, you may need to pursue the business directly. This is where a solicitor can help. Keep all correspondence.

For more on business vehicle downtime, see business vehicle off road downtime costs.

When to involve a solicitor

Involve a solicitor if the car wash denies liability, if the damage is significant, or if you are claiming substantial loss of use. A solicitor can issue a letter of demand, negotiate with insurers, and represent you in court if needed.

For straightforward claims where liability is admitted, you may not need legal help. But if the at-fault party's insurer is stalling or disputing, legal advice is worth it. Many solicitors offer a free initial consultation for motor vehicle claims.

Also consider a solicitor if your own insurer is not cooperating or if you are unsure about your rights. For a referral, see our partners and referrals page.

For more on insurer disputes, see insurer disputes hire car claim.

Fleet manager checklist for car wash incidents

Use this checklist to protect your fleet and streamline the claims process.

• Instruct drivers to never leave keys with a car wash or service centre without a written job sheet.
• Take photos of the car before handing it over, including the odometer.
• Ask for the name of the person who will move the car.
• If damage occurs, complete an incident report on site.
• Request CCTV footage in writing.
• Notify your fleet insurer within 24 hours.
• Arrange a like-for-like replacement through a credit hire provider.
• Keep all receipts and records of downtime.

For a more detailed checklist, see fleet manager replacement car checklist.

Preventing future incidents

Choose car washes and service centres with good reputations and secure premises. Ask about their insurance and whether they have dedicated drivers. For high-value fleet vehicles, consider using a mobile detailing service that comes to your depot, so no one else moves the car.

If you must use a car wash, remove valuables and note any existing damage. Some fleets use GPS trackers to monitor vehicle movement. This can provide evidence if an incident occurs.

For more on fleet management, see business and fleet.

For replacement vehicles, see accident replacement vehicles.