Auto Repair Shop Insurance Cost

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The repair and maintenance of automobiles is a business that will be necessary for the foreseeable future, no matter the state of the economy. Americans average almost two cars per household and most of them use at least one of those vehicles every day. While operating an auto repair shop is an essential, somewhat stable, and potentially lucrative business, it is not without risks. Auto repair shop insurance will protect your business in the case of an unexpected accident.

In this guide, we will provide information about auto repair shop insurance costs to help you make the best decision about your own policy.

We Cover in This Guide

  • How much does auto repair shop insurance cost?
  • What is auto repair shop insurance?
  • What does auto repair shop insurance cover?
  • What does auto repair shop insurance not cover?
  • Benefits and risks
  • Tips for buying
  • FAQ
  • Summary
  • All types of insurance you may need

How Much Does Auto Repair Shop Insurance Cost?

Auto repair shop insurance cost for small businesses varies based on a number of factors including location, size, payroll, sales, and experience. The range of prices for a $1 to $2 million limit policy is $39 to $89 per month, but those costs can be higher with more extensive coverage.

The following are some examples of common auto repair shop insurance cost:
Auto repair shop insurance cost

When your shop has specific requirements to cover certain risks, there are various other coverages you can add to your policy to provide additional protection.

What Is Auto Repair Shop Insurance?

Insurance coverage is essential for any auto repair shop. The day-to-day operation of your business involves working with dangerous machinery and on expensive vehicles. An accident causing damage or injuries and a resulting lawsuit could irreparably ruin your company; both from reputational harm and potential loss of assets. Auto repair shop insurance that covers your potential risks will protect your business from these claims and help ensure the survival of your shop.

What Does Auto Repair Shop Insurance Cover?

The specific coverage of your auto repair shop insurance policy will depend on your provider and the choices you make, but many plans protect your business against claims from the following:

  • Bodily injury
  • Third party property damage
  • Business personal property damage
  • Personal injury
  • Coverage for products/completed operations
  • Lost business income
  • Equipment breakdown
  • Work-related accidents and disease
  • Ongoing medical care (such as rehab)
  • Missed wages during recovery

What Does Auto Repair Shop Insurance Not Cover?

While basic auto repair shop insurance covers most of your potential risks, there are certain scenarios that are not included in most policies. Some examples are:

  • Damaging a customer’s vehicle in your care
  • Employee theft
  • Damage or injury while driving work vehicles
  • Incorrect evaluation of a vehicle

You can often get protection from these potential claims by adding additional coverage to your policy.

Benefits and Risks

Running an auto repair shop puts you, your company, your employees, your customers, and others in a number of risky situations. Auto repair shop insurance provides the benefit of protecting you from most of them. The most significant risk you may face is a potential lawsuit. The costs if you are found responsible can be very high on top of the price of mounting a legal defense. Auto repair insurance covers the lawyer fees and potential damages. Knowing your company and assets are secure in the event of such a scenario will give your customers confidence that you are a reliable company and will allow your employees to focus on their work. Additionally, depending on your location, you may be required to obtain minimum coverage. Auto repair shop insurance will help you comply with certain regulations and operate legally.

Tips for Buying

When considering auto repair shop insurance costs, keep the following in mind before making your decision:

  • Identify your risks: Be sure to thoroughly analyze your shop, considering your size, the type of repairs and maintenance you provide, and the vehicles you service, to identify potential risks. After that, choose the proper limits and include all the applicable coverages.
  • Work with an independent agent: An independent insurance agent will help direct you toward providers with the best rates and those that have the most experience with your industry.
  • Compare quotes: Policy premiums vary between insurers. Consider at least three quotes to find the best rates and coverage.


What is a BOP?
BOP is an acronym for a business owner policy. It is an insurance package that combines essential coverage for most companies. Commercial general liability and commercial property are the two primary insurances providers offer.

What is garage keepers’ liability insurance?
Garage keepers’ liability insurance is a policy specially designed for all shops that repair or maintain vehicles. It protects your business in case your negligence causes damage to a customer’s vehicle while in your care.

Do I need errors & omissions insurance?
Errors & omissions insurance is a recommended policy for anyone providing services. This type of coverage will protect you in case you fail to recommend a necessary repair for a vehicle or the information you provide causes damage.


The automotive repair and maintenance industry includes a variety of shops that provide different services and have their own way of operating, as well as various vehicle specialties and customer base. While no shop is the same, most face similar risks and potential challenges. Auto repair shop insurance protects your business and its assets from lawsuits related to your work on customers’ vehicles.

By understanding auto repair shop insurance cost and determining your needs, you can know that your policy covers potential risks and feel secure knowing that your business is protected.

All Types of Insurance You May Need

General liability insurance Commercial property insurance
Workers' compensation Cyber liability insurance
Typical cost is


General liability & property; bundle them with a business owners policy (BOP)

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