Auto Repair Shops need specific business insurance to protect against the unique risks of their industry. General liability for Auto Repair Shops averages $1,440 per year. Here is exactly what coverage you need.
What Insurance Do Auto Repair Shops Need
Auto repair shops need garage keepers legal liability — which covers customers' vehicles in the shop's care — in addition to standard general liability for premises injuries.
Required coverage for Auto Repair Shops:
- Garage Keepers Legal Liability
- General Liability
- Commercial Property
- Workers Compensation
Optional but strongly recommended:
- Commercial Auto
- Employment Practices Liability
- Umbrella
How Much Does Auto Repair Shops Insurance Cost
| Coverage Type | Typical Annual Cost | What It Covers |
|---|---|---|
| General Liability | $1,440/year | Third-party bodily injury and property damage claims |
| Business Owner's Policy | $2,880/year | GL plus commercial property bundled at a discount |
| Workers Compensation | $500–$5,000+ per employee | Employee injuries and occupational illness |
| Commercial Auto | $1,200–$3,600/year per vehicle | Company vehicles used for business purposes |
How to Get the Best Auto Repair Shops Insurance Rate
- Compare quotes from at least 3 business insurance providers — rates vary significantly for auto repair shops.
- Bundle coverages into a Business Owner's Policy where applicable for 10–25% savings.
- Implement documented safety procedures and training — insurers reward businesses with strong safety records.
- Maintain a clean claims history — even one significant claim can increase premiums 30–50% at renewal.
- Work with an independent insurance agent who specializes in auto repair shops since they access markets that specialize in your trade.
- Review and update coverage annually — over-insurance and under-insurance both cost you money.
Industry Tip
Get certificates of insurance from all subcontractors and require them to add you as an additional insured on their policy. Subcontractors without proper insurance can create uninsured liability under your general liability policy.