Several factors contribute to the cost of business insurance, including the size of your automotive business and its risks. Cost estimates are sourced from policies purchased by Insureon customers.
General liability insurance costs for auto services and dealers
Automotive businesses pay a median premium of less than $50 per month, or $576 per year, for general liability insurance. This policy provides protection for third-party bodily injuries and property damage, along with advertising injuries.
Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your auto repair shop, gas station, or other property, and costs less than purchasing each policy separately.
The cost of general liability insurance depends on your industry risk
Among automotive businesses that purchase general liability with Insureon, 20% pay less than $500 per year and 50% pay between $500 and $1,000 per year. High-risk businesses can expect to pay more for this policy.
Common general liability limits for auto services and dealers
Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.
Most automotive businesses (99%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.
Workers’ compensation insurance costs for auto services and dealers
To meet your state’s requirements and avoid penalties, auto services and dealers with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness. With a median premium of less than $140 per month, or $1,667 per year for automotive businesses, policy cost is determined by your number of employees and occupational risk, among other factors.
The cost of workers’ comp depends on the number of employees
Among automotive businesses that purchase workers’ compensation insurance with Insureon, 22% pay less than $1,000 per year and 33% pay between $1,000 and $2,000 per year. The premium varies depending on the number of employees and their level of occupational risk.
Business owner’s policy costs for auto services and dealers
Automotive businesses pay a median premium of less than $120 per month, or $1,422 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
A BOP protects against third-party injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s licensed agents.
The cost of a BOP increases with the value of your property
Among auto services and dealers that purchase a business owner’s policy with Insureon, 32% pay less than $1,000 per year and 35% pay between $1,000 and $2,000 per year. Automotive businesses with more expensive business property can expect to pay more for this policy.
Commercial auto insurance costs for auto services and dealers
Automotive businesses pay a median premium of less than $65 per month, or $778 per year, for commercial auto insurance. This policy can pay for third-party property damage and medical bills in an accident, along with vehicle damage caused by theft, weather, and vandalism.
Businesses with company-owned vehicles must purchase commercial auto insurance. The cost will vary depending on the type and number of company vehicles, and your unique business risks.
The number of vehicles and their use determine commercial auto costs
Among auto services and dealers that purchase commercial auto insurance with Insureon, 29% pay less than $400 per year and 23% pay between $400 and $800 per year. The cost primarily depends on the vehicle's value, how often it is driven, and how many vehicles you own.
Compare quotes from trusted carriers with Insureon
Insureon’s automotive business insurance agents work with top-rated U.S. carriers to find affordable coverage that fits your business. Apply today to compare multiple quotes with one free online application. Work with an account manager specializing in the unique risks of auto detailers, mechanics, and gas stations.