Operations that service automobiles face a range of unique risks. Whether you're running a body shop, tire store, quick lube center, or muffler installation service, your business is exposed to similar pollution and completed operations risks. Common concerns include pollution from above-ground and underground storage tanks, damage to customers' vehicles while in your care, and injuries to employees working in high-risk environments. Addressing these exposures with the right insurance coverage is essential to protect your operations and stay compliant with industry regulations.
What is Auto Service and Auto Repair Insurance?
Auto service and auto repair insurance is a specialized type of business insurance designed to protect companies that service and maintain vehicles. This includes shops that perform mechanical repairs, bodywork, oil changes, tire services, and other automotive maintenance tasks. The coverage helps manage the financial risks associated with running a repair or service facility.
Who Needs It
This insurance is essential for businesses that regularly handle customer vehicles or operate in environments where property damage, pollution, or bodily injury could occur. Examples include:
- Auto repair shops
- Body and collision repair centers
- Tire and brake shops
- Quick lube and oil change facilities
- Transmission and muffler services
What It Typically Covers
Auto service insurance policies can vary but often include:
- Garage liability: Covers third-party injuries or property damage occurring on your premises.
- Garagekeepers coverage: Protects customers' vehicles while in your care, custody, or control.
- Pollution liability: Covers environmental cleanup and damage due to fuel or chemical spills.
- Workers' compensation: Helps cover medical expenses and lost wages for employees injured on the job.
- Commercial property: Protects your building, tools, inventory, and equipment from damage or loss.
Common Exclusions and Limitations
Insurance policies may not cover:
- Intentional damage
- Work performed outside the scope of your business type
- Warranty claims or product defects
- Pollution not caused by a sudden event
Always review your policy details to understand what is and isn’t covered.
Factors That Influence Cost
Several factors can affect the cost of auto service insurance, including:
- Business size and annual revenue
- Types of services offered
- Number of employees
- Claims history
- Location and property value
Proof of Insurance and Compliance
Many states and local governments require auto service businesses to carry certain types of insurance to operate legally. You may also need to show proof of insurance to landlords, lenders, or clients. Be sure to check with local authorities for specific requirements in your area.
How to Get a Quote
Protect your auto service business with the right insurance coverage. Get a quote today to find a policy that fits your needs.
Frequently Asked Questions
What is garagekeepers insurance?
Garagekeepers insurance covers damage to customers' vehicles while they are in your care, such as during repairs or storage.
Is pollution coverage necessary for auto repair shops?
Yes, pollution liability can be important if your operations involve storage tanks, chemicals, or waste that could lead to environmental damage.
Does this insurance cover employee injuries?
Employee injuries are typically covered under workers' compensation insurance, which is often included or required alongside auto service coverage.
Are customer vehicles covered if they’re damaged on my lot?
Yes, with garagekeepers coverage, customer vehicles are typically protected against fire, theft, vandalism, and accidents while on your property.
Do I need insurance if I work out of my home garage?
Yes, even home-based auto repair businesses face liability and property risks that require proper insurance coverage.
Still have questions? Talk to a local insurance expert.