When a mechanic accidentally damages Hector's car while being serviced, what type of coverage will apply?

When a mechanic accidentally damages Hector's car while it is being serviced, the applicable coverage is the dealer's garagekeepers coverage. This type of coverage is specifically designed to protect vehicles while they are in the possession of a repair shop or dealership for maintenance or repair. It covers damages caused by the garage's employees while they are working on the vehicle, which aligns perfectly with the scenario where the mechanic inadvertently causes damage.

Garagekeepers coverage is essential for businesses that handle customers' vehicles, as it safeguards against a variety of potential incidents, including theft, fire, and damage due to the garage's operations. This form of coverage provides reassurance to both the dealership and the vehicle owner that any mishaps during servicing will be financially covered.

Utilizing other types of coverage, such as collision or general liability, would not apply in this context. Collision coverage typically pertains to damage to the policyholder's vehicle from a collision, while general liability pertains to broader liabilities of a business but does not specifically cover damages to vehicles in their care. Therefore, garagekeepers coverage is the most relevant and appropriate type of insurance for the situation presented.