Auto Repair Shop and Mechanic Insurance

Auto Repair
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Why do auto repair shops need insurance?

Working on other people's cars involves a lot of risk. If a mechanic accidentally damages a customer's car, the result could be a lawsuit. Auto mechanic insurance can cover legal fees from an accident, property damage from a storm or fire, and the cost of recovering from a data breach.

Auto mechanic repairing a car engine.
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Find the right coverage

Insureon will help you find insurance policies that match the unique risks of auto repair.

Get free expert advice and peace of mind knowing you have the right coverage for your business.

What types of insurance do repair shops and mechanics need?

These insurance policies cover the most common risks of auto repair.

General liability insurance icon

General liability insurance

General liability covers basic repair shop risks, such as when a customer slips during an oil change and suffers an injury. Add garage liability insurance to gain protection for customers' vehicles.

  • Third-party bodily injuries
  • Accidental damage during a test drive
  • Libel and slander lawsuits
Business owner’s policy icon

Business owner’s policy

A business owner’s policy, or BOP, is a cost-effective way for auto repair shop owners to buy general liability coverage and commercial property insurance together.

  • Customer injuries
  • Business property insurance
  • Business interruption incidents
Commercial auto insurance icon

Commercial auto insurance

This insurance covers injuries and property damage caused by an auto repair shop’s vehicle, as well as repairs to business vehicles damaged by weather or vandalism.

  • Physical damage and collision coverage
  • Injuries caused to another person
  • Vehicle theft and vandalism
Workers’ compensation insurance icon

Workers’ compensation insurance

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

  • Employee medical expenses
  • Disability benefits
  • Lawsuits over employee injuries
Cyber insurance icon

Cyber insurance

This policy helps auto repair shops recover financially 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.

How much does insurance cost for automotive services?

Auto services employee calculating insurance costs.

A small repair shop with a few workers will pay less for insurance than a large shop with a dozen mechanics. Factors that affect the cost of auto repair business insurance include:

  • Business type, such as auto repair, tow truck, or dealership
  • Value of business personal property
  • Business size and revenue
  • Other types of coverage, such as garage keepers insurance
  • Policy limits and deductibles
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How do I get auto repair shop insurance?

It’s easy to get insurance coverage as a mechanic or auto repair shop owner if you have your business information on hand. Our insurance application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:

  1. Complete a free online application
  2. Compare insurance quotes and choose policies
  3. Pay for your policy and download a certificate

Insureon's licensed insurance agents work with top-rated U.S. providers to find coverage that fits your automotive repair shop, whether you work independently or hire employees.

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