Auto Repair Shops and Garages

 

 As a garage owner, you provide a quality service to your local community. Customers trust you daily with one of their most expensive assets, their vehicles. They rely on you to fix and maintain their cars, trucks, and motorcycles so they can travel safely from place to place and not have to worry about their family’s safety. It’s a service you should be proud of. It’s also a business that brings you face-to-face with daily risks. Risks that you need to be properly insured against.

Insurance for Auto Shops and Garages:

When was the last time you reviewed your auto shop business insurance? We often find that auto shop owners are so busy turning wrenches and building relationships that they rush into buying insurance and don’t actually know what they purchased. We’ve compiled a list of the most important things you need to know about insuring your garage or auto repair shop.

How Much Does Auto Repair Shop Insurance Cost?

The cost of auto repair shop insurance will vary widely depending on your business size, services, and risk level. Most small to mid-sized shops can expect to pay anywhere between $1,500 to $8,000+ per year, but your exact premium will depend on several key factors. 

What Impacts the Cost of Coverage?

  • Larger shops with more square footage, bays, and equipment typically carry higher premiums due to increased exposure to risk. The more space also means the greater the area of coverage needed.

  • More employees mean higher workers' compensation costs and a greater chance of workplace injuries. 

  • High-risk services like engine rebuilds, transmission work, or performance modifications can increase your premium compared to basic maintenance shops.  If anything goes wrong, you want to be fully covered.

  • Shops with expensive diagnostic machines, lifts, and specialty tools require higher coverage limits to protect their assets fully.

  • If you regularly store or work on high-value vehicles, your garage keepers' insurance costs may increase. 

  • A history of past claims or losses can raise your premiums, while a clean record may help you qualify for lower rates. 

  • Local risk factors such as weather, crime rates, and population density can influence your insurance costs. 

How to Lower Your Insurance Costs

  • Bundle multiple policies for a business owner's policy

  • Implement strong shop safety procedures

  • Train employees regularly

  • Maintain a clean claims history

  • Work with an independent insurance agency like Rumbaugh Insurance to compare carriers 

It’s worth the investment.

Get your auto repair shop insurance quote today.

As a garage owner, it is easy to get trapped in a cost-focused mindset. You want to keep your hourly rates lower than dealerships do, so you try to save money when you can. Don’t sell yourself short. Before you buy insurance based on price, ask your agent if you’ll be protected against more than just slip and falls. Does the policy include errors and omission coverage in the event something you fixed causes an auto accident? Or does it protect you against lawsuits if a customer isn’t satisfied with your work?

Look for insurance specific to your services:

There is no one size fits all insurance policy. To fully protect your garage and assets, you need to buy insurance specifically designed for your unique services. Garage liability, garage keepers, business auto, business property, and worker’s compensation insurance are a few of the most important policies you need in place. Professional liability is valuable to if you often give advice to customers about car repairs.

It doesn’t have to be stressful.

Do you get stressed just thinking about shopping for insurance? It can be an overwhelming process if you are starting from scratch. But there are a few steps you can take now to eliminate that stress. First, make a list of all of the services you offer and the equipment you currently own. Not every insurance agent has insurance solutions for garages, and this list will minimize time invested.

Protect your employees, business, and yourself

Buying insurance isn’t just about protecting your bank account when a claim occurs. You need a 360-degree plan that protects your business, employees, and yourself. Garage liability is a great way to protect your business assets, but worker’s compensation is critical to protecting employees who are injured while working for you. Make a list of the repair services you offer, and then think about what the worst-case scenario if something went wrong. Share those scenarios with your agent so he or she can help you find an inclusive policy.

Buying business insurance is only part of the solution.

Protecting your garage from various risks with insurance is just one step in the process. You also need to create and implement policies and procedures. Policies and procedures act as a guide for how you handle certain scenarios and can protect you from potential risks like slips and falls, employee injuries, and wrecking customer vehicles.
 

You aren’t limited to one company:

Whether you have insurance in place or not, remember you are not limited to one company. There are plenty of insurance carriers that offer insurance for auto repair shops. An independent insurance agent represents more than one carrier. They can provide multiple insurance quotes so you can compare coverages and make the choice that best fits your needs.


How to Find Auto Repair Shop Insurance:

Contact local independent insurance agents who understand the daily operations of a garage. Rumbaugh Insurance is a locally owned and independent insurance agency located in Hanover, PA. We insure several garages in Hanover and the surrounding communities and help them understand what they need and how they are protecting themselves. Give us a call today for a free business insurance review.

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Auto Repair/Garage Shop Insurance FAQs

  • Most states require workers' compensation insurance if you have employees. While general liability isn't always required, it's best to have it to protect your business from lawsuits and financial losses. 

  • Yes. Garage keepers' insurance typically covers theft, vandalism, and damage to customers' vehicles while they are in your care and control. Coverage details can vary, so it's important to review your policy limits and options. 

  • No. General liability insurance only covers certain risks, like third-party injuries or property damage. Most auto repair shops also need garage keepers coverage, workers' compensation, and commercial property insurance. 

  • In many cases, coverage can be secured within 24-48 hours, depending on your business details and how quickly you provide information. 

  • Yes. Even small or mobile businesses face risks such as property damage, injuries, or vehicle issues. Insurance helps protect your business, your customers, and your employees.