Buy Auto Garage Insurance

Or call for your free quote:

Get the best small business insurance quotes online & info on cost, coverage, minimum requirements, certificates & more.

Auto Garage Insurance Policy Information

Auto Garage Insurance

Auto Garage Insurance. Auto garages, also called automobile repair shops, play an essential role in helping any driver maintain their vehicle.

Automotive garages offer a wide variety of mechanical services for automobiles, motorcycles, or trucks, from ongoing maintenance to engine repair to tune-ups. The garage may be stand-alone or part of another business such as an automobile dealership or filling station.

They may specialize in a specific type of automotive repair, such as brakes or transmissions, or may service other types of motorized vehicles such as recreational vehicles or snowmobiles.

Some repair or rebuild parts such as brake drums, or custom-make old, difficult-to-replace parts. Operations may include gasoline or diesel fuel sales or retail sales of automobile accessories and tools. Normally, automotive garages perform body work or painting only when incidental to other repairs.

Many auto garages, staffed by skilled and versatile auto mechanics, are able to repair malfunctions and other problems related to both the mechanical and electrical components seen in different types of vehicles, as well as performing the regular scheduled maintenance that keeps cars running smoothly and safely. Others specialize in certain aspects of car repair, such as brakes or transmissions.

Whether you already own and manage an auto garage or are, perhaps, currently a mechanic thinking about starting your own business, you will already know that auto garages never run out of customers; the car repair industry is a reliable one.

Auto garages still, however, face numerous threats, and any working day may be one during which your business is met with unexpected circumstances.

What kinds of auto garage insurance might be needed to protect against devastating financial consequences if something goes wrong? Learn more in this brief guide.

Auto garage insurance protects your shop from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked auto garage insurance questions:

What Is Auto Garage Insurance?

Auto garage insurance is a type of insurance that provides coverage for businesses that operate auto garages, including repair shops, service stations, and body shops.

It typically includes coverage for property damage, liability, and business interruption. This insurance can also cover damage to vehicles that are being worked on, as well as injuries to employees or customers.

It is designed to protect the business from financial losses due to accidents, fires, theft, or other unexpected events.

How Much Does Auto Garage Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small auto garages ranges from $37 to $69 per month based on location, services offered, revenue, claims history and more.

Why Do Auto Garages Need Insurance?

Auto Mechanic In Garage

Auto garages need insurance for a number of reasons. First and foremost, it protects their business and assets in case of any unexpected events, such as accidents or natural disasters. Without insurance, a garage could potentially face financial ruin in the face of such events.

Insurance also protects the garage's employees and customers. If an employee is injured on the job, the garage's insurance can cover their medical expenses and any potential legal fees. Similarly, if a customer's vehicle is damaged while in the garage's care, insurance can help cover the repair costs.

Additionally, auto garage insurance can help a garage protect its reputation. If a customer files a lawsuit against the garage for damages, insurance can help cover the costs of legal defense and potentially minimize any negative impact on the garage's reputation.

Overall, insurance is an important protection for auto garages to have in order to safeguard their business, employees, customers, and reputation.

What Type Of Insurance Do Auto Garages Need?

Your auto garage is unique - and your business will benefit most from a custom-made comprehensive insurance plan. Factors like the location of your garage, the number of employees you have, the exact scope and nature of your activities, and the value of your equipment all influence your insurance needs.

Because one size does not fit all, you are strongly advised to consult a seasoned commercial insurance broker. With that in mind, some of the core types of auto garage insurance that are needed:

  • Commercial Property: Your garage, the tools and equipment inside, and your inventory could all sustain heavy losses if you are impacted by an act of nature, burglarized, or hit by an act of vandalism. Commercial property insurance will help you cover the costs.
  • Garage Liability: A niche form of commercial liability insurance, this type of auto garage insurance coverage exists to allow you to recover from mishaps on your premises or caused by your activities in which a third party is injured or severe property damage occurs. Both your attorney fees and any settlement costs are covered.
  • Garage Keepers: This kind of insurance safeguards your business if a customer's vehicle is damaged while it is in your care, by taking care of the expenses that follow.
  • Workers Compensation: Auto garages that employs workers needs to carry workers' comp insurance, which covers the medical bills and any lost wages of employees who sustain work-related injuries. In the process, having this insurance also greatly reduces the risk that an injured employee will sue your auto garage.

These essential forms of auto garage insurance coverage will go a long way toward protecting any garage from severe financial losses if they are affected by a major peril.

Because your garage may have additional insurance needs, however, it is important to talk your risk profile through with a commercial insurance broker who understands your branch of commerce.

What Are Auto Garages Risks & Exposures

Car On Lift In Garage

Commercial auto exposures may be limited to hired and non-owned for employees running errands to pick up needed supplies. If there are owned vehicles, all employee drivers should have an appropriate driver's license and their MVRs should be regularly checked. There should be written procedures for personal and permissive use of vehicles furnished to employees.

All vehicles must be regularly maintained with records retained. Towing presents a more serious exposure due to the potential for damage to the vehicles being towed. All tow truck drivers must be experienced. Towing vehicles must be regularly checked, particularly the hoists and tow bars.

If vehicles are rented to customers, the garage should keep a copy of the renter's driver's license and proof of insurance. The rental contract should identify all drivers and state that unlisted, unlicensed, or minor drivers are not permitted to operate the vehicle. It should also include a hold-harmless agreement in which renters agree to assume responsibility for the operation of the vehicle to limit the garage's exposure to vicarious liability only.

If a collision damage waiver is offered, the customer's signature is needed to document whether this was purchased or declined. The customer should also be required to sign a pre-inspection form to minimize disputes when the vehicle is returned with damages.

Vehicles that are rented should be inspected and reconditioned before being rented again.

Garagekeepers exposure comes from damage that can occur to customers' vehicles while in the repair shop's care, custody and control. Keys to customers' vehicles should be kept in a locked box to prevent unauthorized use. Proper identification should be required to prevent handing a customer's car to the wrong owner.

Lots must be well lighted with chains in place to prevent transport. Fences and other security also may be appropriate.

Premises liability exposure is high due to the number of visitors to the garage. Waiting areas should be provided for customers waiting on repairs. Customers must not be permitted in the garage area. To prevent slips and falls, floor coverings should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring.

Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. There should be a disaster plan in place for unexpected emergencies. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.

If the premises is open after dark, there must be adequate lighting and appropriate security for the area. Cars in the parking lot present an attractive nuisance hazard. Chains may be required to prevent entrance after hours.

Personal injury exposures include allegations of discrimination and from apprehending suspected shoplifters, which may result in claims of assault and battery, false arrest or detention, unauthorized or intrusive searches, or wrongful ejection from the premises.

Products liability exposure can be high due to the potential for an accident in the event that a vehicle is not properly repaired. There should be a check-off procedure in place prior to release of the vehicle to the customer to prevent its return with any vital functions not working properly.

If the garage directly imports or reconditions items for resale, the exposure increases to that of a manufacturer.

Environmental impairment exposures can be very high due to the disposal of used lubricants, oils, degreasers, solvents, batteries, and tires. Spillage and leaking of pollutants into the air, ground, or water can result in high cleanup costs and fines.

Adequate procedures should be in place and must be followed to prevent any leakage or contamination. Contracts should be in place to dispose of all environmentally dangerous chemicals.

Workers compensation exposures are very high. Brake turning, welding or other repair work must be handled only when appropriate safety equipment, especially eye protection, is available. Lifting of a vehicle by hoists, jacks, and other mechanical means can result in injury should the equipment malfunction. Hoists must be well maintained and procedures in place to prevent vehicles from falling.

Workers can slip and fall, or incur back injuries, sprains, strains or hernias from lifting. If the shop sells batteries, leakage or spilling of battery acids can cause burns on contact with skin and respiratory problems when inhaled.

Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Employees performing maintenance or repair work on customers' vehicles should be properly trained.

Property exposure is high due to flammables such as lubricants, oils, degreasers, and solvents used in the repair operations. They must be properly labeled, separated, and stored away from combustibles. Aerosols and flammable additives contribute to the overall fire load.

Welding needs to be evaluated for proper handling of the tanks and gases, as well as adequate separation from the other operations with either a separate room or flash/welding curtains.

Tires do not catch on fire quickly; however, when they do burn, the fire is difficult to put out and an oily smoke permeates the entire area. Smoking must be prohibited.

All machinery and equipment must be inspected and maintained regularly to avoid wear and tear or overheating losses.

Vehicle parts are target items for thieves. Appropriate security controls must be taken including alarms, lighting, and physical barriers prohibiting access to the premises after hours. Premises alarms should report to a central stations or police department after hours.

Equipment breakdown exposure is high as the business is dependent on its machinery for conducting operations. Replacement parts may be difficult to obtain on a timely basis.

Inland marine exposures are from accounts receivable if the garage offers credit, computers to monitor inventory and for diagnostics, goods in transit if parts are delivered to customers, and valuable papers and records for customers' and vendors' information.

Backup copies of all records, including computer records, should be made and stored off premises.

Crime exposure is high for both employee dishonesty and theft of money and securities. Background checks should be conducted on all employees. The inventory must be under the supervision of more than one individual so that there are checks and balances. All ordering, billing and disbursements must be handled as separate duties. Regular audits must be conducted.

Money should be regularly stripped from the cash drawers and placed in a safe away from the front door. Irregular drops should be made to the bank to prevent a substantial accumulation of cash on the premises.

What Does Auto Garage Insurance Cover & Pay For?

Auto Garage Insurance Claim Form

Auto garages may face various types of lawsuits, including:

Property Damage: Auto garages are responsible for keeping customers' cars in good condition while they are in their possession. If the garage damages the vehicle, the owner may sue for compensation.
Insurance coverage: Garage Liability Insurance provides coverage for property damage caused by the garage's operations. If the garage is found liable for damaging the vehicle, the insurance policy can cover the cost of repairs or replacement of the damaged property.

Personal Injury: Customers or third parties can suffer bodily injury while on the garage's premises, and they may sue the garage for damages. Insurance coverage: Garage Liability Insurance also covers bodily injury claims arising from the garage's operations. The policy can cover medical expenses, lost wages, and other damages resulting from the injury.

Professional Negligence: If a garage technician fails to perform a repair correctly, the car owner may sue the garage for negligence.
Insurance coverage: Garage Liability Insurance includes coverage for errors and omissions made by garage employees. The policy can cover legal costs and damages awarded to the claimant if the garage is found liable.

Theft and Vandalism: Auto garages are responsible for keeping customers' vehicles safe while they are in their possession. If a vehicle is stolen or vandalized while in the garage's care, the owner may sue for damages.
Insurance coverage: Garagekeepers Insurance provides coverage for damages or loss to customers' vehicles while they are in the garage's care, custody, or control. The policy can cover the cost of repairs or replacement of the stolen or vandalized vehicle.

Environmental Claims: Auto garages can face environmental liability claims if they fail to properly dispose of hazardous materials or cause pollution.
Insurance coverage: Environmental Liability Insurance provides coverage for cleanup costs, legal fees, and damages arising from environmental claims against the garage. The policy can cover the cost of defending against claims and remediation of pollution.

In summary, auto garage owners can protect themselves from potential lawsuits by obtaining various insurance policies such as Garage Liability, Garagekeepers, and Environmental Liability insurance. These policies can provide financial protection and help pay for legal fees, damages, and other costs associated with lawsuits.

Commercial Insurance And Business Industry Classification

Description for 7532: Top, Body, And Upholstery Repair Shops And Paint Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7532 Top, Body, And Upholstery Repair Shops And Paint Shops: Establishments primarily engaged in the repair of automotive tops, bodies, and interiors, or automotive painting and refinishing. Also included in this industry are establishments primarily engaged in customizing automobiles, trucks, and vans except on a factory basis. Establishments primarily engaged in customizing automobiles, trucks, and vans on a factory basis are classified in Manufacturing, Industry Group 371.

  • Antique and classic automobile restoration
  • Automotive body shops
  • Automotive interior shops
  • Automotive paint shops
  • Automotive tops (canvas or plastic), installation, repair, or sales and
  • Automotive trim shops
  • Bump shops (automotive repair)
  • Collision shops, automotive
  • Customizing automobiles, trucks or vans: except on a factory basis
  • Upholstery repair, automotive
  • Van conversions, except on a factory basis

Description for 7533: Automotive Exhaust System Repair Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7533 Automotive Exhaust System Repair Shops: Establishments primarily engaged in the installation, repair, or sale and installation of automotive exhaust systems. The sale of mufflers, tail pipes, and catalytic converters is considered to be incidental to the installation of these products.

  • Catalytic converters, automotive: installation, repair, or sales and
  • Exhaust system services, automotive
  • Mufflers, automotive: installation, repair, or sales and installation

Description for 7534: Tire Retreading And Repair Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7534 Tire Retreading And Repair Shops: Establishments primarily engaged in repairing and retreading automotive tires. Establishments classified here may either retread customers' tires or retread tires for sale or exchange to the user or the trade.

  • Rebuilding and retreading tires for the trade
  • Retreading tires
  • Tire recapping
  • Tire repair shops
  • Tire studding and restudding
  • Vulcanizing tires and tubes

Description for 7536: Automotive Glass Replacement Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7536 Automotive Glass Replacement Shops: Establishments primarily engaged in the installation, repair, or sales and installation of automotive glass. The sale of the glass is considered incidental to the replacement.

  • Glass replacement and repair, automotive

Description for 7537: Automotive Transmission Repair Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7537 Automotive Transmission Repair Shops: Establishments primarily engaged in the installation, repair, or sales and installation of automotive transmissions. The sale of transmissions and related parts is considered incidental to the installation or repair of these products.

  • Automatic transmission repair, automotive
  • Transmission repair, automotive
  • Transmission, automotive: installation, repair, or sale and installation

Description for 7538: General Automotive Repair Shops

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7538 General Automotive Repair Shops: Establishments primarily engaged in general automotive repair. Establishments primarily engaged in industrial truck repair are classified in Industry 7699.

  • Automotive repair shops, general
  • Diesel engine repair, automotive
  • Engine repair, automotive
  • Engine repair, truck: except industrial
  • Garages, general automotive repair and service
  • Motor repair, automotive
  • Truck engine repair, except industrial

Description for 7539: Automotive Repair Shops, Not Elsewhere Classified

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 753: Automotive Repair Shops

7539 Automotive Repair Shops, Not Elsewhere Classified: Establishments primarily engaged in specialized automotive repair, not elsewhere classified, such as fuel service (carburetor repair), brake relining, front-end and wheel alignment, and radiator repair. Establishments primarily engaged in automotive welding are classified in Industry 7692.

  • Air-conditioner repair, automotive
  • Automotive springs, rebuilding and repair
  • Axle straightening, automotive
  • Brake linings, sale and installation
  • Brake repairing, automotive
  • Carburetor repair
  • Electrical service, automotive (battery and ignition repair)
  • Frame repair shops, automotive
  • Front end repair, automotive
  • Fuel system conversion, automotive
  • Fuel system repair, automotive
  • Generator and starter repair, automotive
  • Radiator repair shops, automotive
  • Wheel alignment, automotive

Auto Garage Insurance - The Bottom Line

To protect your operation, employees and customers, having the right auto garage insurance coverage is vital. To see the options are available to you, how much coverage you should invest in and the cost - speak to a reputable commercial insurance broker.

Additional Resources For Auto Service & Repair Insurance

Read useful small business auto service and repair insurance policy information. In an aotu related business, you need to have the right type of commercial insurance coverage so that your garage, employees, and customers vehices & other property is protected.

Auto Service Insurance

The auto service and repair industry is an essential part of the transportation sector, responsible for maintaining and repairing vehicles to keep them running smoothly and safely. However, this industry also comes with inherent risks and liabilities, which is why commercial insurance is necessary to protect both the business and its employees.

First and foremost, the auto service and repair industry deals with hazardous materials and equipment on a daily basis. There is a risk of accidents and injuries occurring in the workshop, and insurance can provide financial protection in the event of a workplace accident or injury.

Additionally, the auto service and repair industry is subject to the risk of property damage. There is a potential for damage to vehicles in the workshop, as well as damage to the business' own property, such as tools and equipment. Business insurance can cover the costs of repair or replacement in the event of such damage.

Furthermore, the auto service and repair industry is vulnerable to liability claims from customers. If a customer's vehicle is not repaired properly, it can result in further damage or accidents on the road, leading to liability claims against the business. Insurance can provide coverage for these types of claims, protecting the business from financial loss.

In conclusion, the auto service and repair industry needs commercial insurance to protect against the risks and liabilities inherent in this line of work. Without insurance, businesses in this industry would be vulnerable to financial loss and legal action, which could ultimately lead to their failure.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Underground Storage Tank Liability, Umbrella, Hired and Non-owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Computer Fraud, Forgery, Goods in Transit, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.

Free Business Insurance Quote Click Here