How is a customer's car covered under an insured's garage coverage form with garagekeepers insurance during a test drive?

The correct answer indicates that the customer's car is covered for any physical damage while it is in the custody of the insured. This aligns with the principles of garagekeepers insurance, which is designed to provide coverage for customers' vehicles while they are in the care, custody, or control of the garage. When a customer takes their car for a test drive, the vehicle is under the control of the dealership or insured party, thereby activating the garagekeepers coverage. This type of insurance typically covers physical damage due to fire, theft, vandalism, and collision during the time the vehicle is in the insured's possession.

This comprehensive coverage is essential for businesses that handle customer vehicles, as it protects both the business and the customer from potential financial losses due to damage that could occur during routine operations, including test drives. As a result, the business maintains its liability, ensuring that customers feel secure in their choice to entrust their vehicles to the care of the insured.