General Liability Insurance
Covers customer injury and general premises liability common to shops open to walk-in traffic.
How it worksRetail & Services
Insurance for Auto Repair Shops
Cover customer vehicles, garage liability, and equipment with insurance built for repair shops.
One application, shopped to our A-rated carrier network. Number of offers depends on carrier appetite for your class, state, and loss history.
What underwriters look at
Auto repair shops take physical custody of customer vehicles worth tens of thousands of dollars, and that alone sets them apart from most retail businesses. A test drive accident, a fire that starts during a repair, or damage that happens while a car is on a lift can all lead to claims, and standard general liability typically doesn't cover damage to vehicles in your care the way garage liability and garagekeepers coverage do.
Shops also carry significant tool and equipment investment, from lifts and diagnostic scanners to compressors and specialty tools that can walk off a workbench. Mechanics face daily injury risk from heavy lifting, exposure to fumes and chemicals, and working with power tools, which makes workers' compensation a near-universal requirement once a shop has employees.
Because repair work sometimes leads to disputes over whether a job was done correctly, some shops also carry errors and omissions style coverage for faulty repair claims. Combining garage liability, garagekeepers coverage, and property protection into one program tends to address the day-to-day realities of running a shop.
Damage to customer vehicles
Vehicles on-site for repair can be damaged during test drives, lift use, or while parked, creating garagekeepers claims.
Shop fires
Welding, fuel systems, and electrical work create fire risk that can spread quickly through a garage bay.
Employee injuries
Lifting heavy parts, working under vehicles, and exposure to fumes and chemicals are common sources of workers' comp claims.
Tool and equipment theft
Lifts, diagnostic tools, and hand tools represent significant investment that theft or fire can wipe out.
The coverage stack for auto repair shops
Most owners in this class start here. A licensed agent will confirm what your contracts, state, and payroll actually require.
Commercial Property Insurance
Covers tools, lifts, and diagnostic equipment against fire and theft.
How it worksWorkers' Compensation Insurance
Required in most states for mechanics exposed to lifting, fumes, and power tool injuries.
How it worksCommercial Auto Insurance
Covers shop vehicles used for parts runs, towing, or customer pickups.
How it worksCommercial Umbrella Insurance
Adds extra liability limits for shops handling higher-value vehicles or larger repair volume.
How it worksWhat it typically costs
Auto repair shop premiums typically depend on shop size, services offered, and the value of vehicles typically in your care.
| Business size | Typical annual range |
|---|---|
Small independent shop, 1–3 employees Garagekeepers and liability coverage make up the bulk of cost at this size. | $2,500 – $6,000 / yr |
Mid-size shop, 4–10 employees More bays and staff increase workers' comp and liability exposure. | $7,000 – $15,000 / yr |
Full-service shop with specialty work Higher-value vehicle repairs and expanded services raise garagekeepers limits needed. | $16,000 – $30,000+ / yr |
Illustrative ranges only. Premium varies by state, carrier, limits, payroll, and loss history — it is not a quote.
What moves your premium
- Number of employees
- Services offered (bodywork, mechanical, specialty)
- Average value of customer vehicles serviced
- Number of shop vehicles
- Claims history
- Building and equipment value
Auto Repair Shops insurance questions
Ready to compare auto repair shops quotes?
One application. Up to 10 competing quotes from A-rated carriers. A licensed agent presents your best options, usually within one business day.