Auto Services and Dealers Business Insurance

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Insureon has helped small businesses secure over 1.5 million policies.

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Recommended insurance policies for automotive professionals

Your small business can survive the unique risks of the auto industry with coverage for vehicle damage, injuries, and more. Having the right insurance gives you peace of mind and financial protection against the unexpected.

General liability insurance icon

General liability insurance

This policy covers basic auto service and dealer risks, such as a customer injury at a repair shop. Bundle with property insurance for savings in a business owner’s policy.

  • Customer injuries at a repair shop
  • Accidental vehicle damage
  • Slander and other advertising injuries
Business owner’s policy icon

Business owner’s policy

This policy bundles commercial property and general liability insurance in one plan. A BOP is often the most cost-effective type of auto shop insurance.

  • Customer injuries
  • Damaged customer vehicles
  • Damaged business property
Commercial auto insurance icon

Commercial auto insurance

A commercial auto insurance policy for repair shops and dealers can pay for property damage and medical bills in an accident. It’s also required in most states for businesses that own cars.

  • Car accident repair costs
  • Vandalism and theft
  • Weather damage
Workers’ compensation insurance icon

Workers’ compensation insurance

Workers’ comp is required in almost every state for auto shops that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.

  • Employee medical expenses
  • Partial wage reimbursement
  • Lawsuits over employee injuries
Cyber insurance icon

Cyber insurance

This policy helps automotive businesses recover from data breaches and cyberattacks. It's recommended for any business that stores credit cards or other personal information.

  • Customer notification expenses
  • Fraud monitoring services
  • Data breach investigations
Umbrella / excess liability insurance icon

Commercial umbrella insurance

This policy boosts the limits of general liability insurance, commercial auto insurance, and employer's liability insurance to protect against the most expensive kinds of lawsuits.

  • Multi-vehicle auto accidents
  • Customer injury lawsuits
  • Employee injury lawsuits
Looking for different coverage? See more policies.

Does my auto service business need commercial auto insurance?

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Because personal car insurance won't cover vehicle accidents while on the job, commercial auto insurance is important for automotive businesses that:

  • Have a vehicle titled to their business
  • Drive to and from worksites
  • Carry tools, equipment, or products used for work
  • Offer towing services
  • Rely on delivery drivers or couriers

Check the laws in your state to see when coverage is required.

How much does insurance cost for auto services and dealers?

Auto services employee calculating insurance costs.

Several factors contribute to the cost of insurance coverage for auto service businesses like car dealerships, tire shops, and collision repair shops, including:

  • The types of automotive services offered, such as vehicle repair, tune-ups, roadside assistance, and service contracts
  • Shop or dealership equipment and property
  • Your auto business' size and revenue
  • Where your business operates
  • How many employees you have
  • Your policy limits and deductibles
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How do I get automotive business insurance?

It’s easy to find insurance for auto service and dealer businesses. Whether you run a mobile detailing business or operate a repair shop or gas station, you’ll need to have some basic information about your business available.

Our application will ask you for your annual revenue and payroll, among other details. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:

  • Complete a free online application
  • Compare free quotes and choose a policy
  • Pay for your policy and download a certificate for proof of insurance

Insureon's licensed insurance agents work with top-rated U.S. providers to find the right type of coverage for your automotive business, whether you’re a one person operation or have several employees on your payroll.

Common questions about auto services and dealer business insurance

Do I need additional coverage for customers and their vehicles?

There are two policies that can help protect your auto services business against special risks related to customers and their vehicles:

Garage liability insurance: This policy is similar to general liability insurance, but extends coverage to the additional exposure of garage operations. For example, it would cover a lawsuit from a customer who slipped in an oily spot at your vehicle service center.

Garage keepers insurance: Businesses that store or service vehicles should carry this coverage. It protects against accidental damage to a vehicle in your care, custody, or control, such as a customer’s car damaged by an employee in your parking lot or auto repair shop.

Learn about the difference between garage liability and garage keepers insurance.

What other insurance policies should service businesses carry?

Small business owners that operate any type of car service or dealership business should consider the following insurance products, which cover any additional risks you might encounter:

Product liability insurance: This policy protects against legal costs related to defective products, such as a new tire in which the tread separates and causes an accident, or an oil change that used bad oil and damages a customer's car. It's often included with your general liability insurance.

Errors and omissions (E&O) insurance: E&O insurance, also called professional liability insurance, pays for lawsuits related to professional mistakes and oversights, such as a customer who a vehicle detail took longer than promised or didn't meet promised expectations.

Business interruption insurance: A BOP often includes business interruption coverage, which covers costs when your dealership is forced to close temporarily due to a fire, storm, or other covered property claim.

Equipment breakdown coverage: Also called mechanical breakdown insurance, it's an endorsement to your commercial property insurance or BOP, this type of insurance covers expenses when your shop's equipment or machinery suffers a mechanical failure. One policy exclusion is standard equipment wear and tear.

Surety bonds: A surety bond protects your customers from employee dishonesty and negligent activities. In the event of employee theft or breach of contract, the insurance company will reimburse the customer for their losses.

Employment practices liability insurance (EPLI): EPLI covers employment-related lawsuits such as harassment, wrongful termination, discrimination, and other work-related issues. If your auto dealership or repair shop has employees, you would benefit from this policy.

Dealer's open lot (DOL) coverage: DOL provides physical damage coverage to an auto dealer's new car and used car inventory, and comprehensive coverage for fires, hail, vandalism, theft, and other non-collision damages.

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