Auto repair shop insurance
A repair shop needs two coverages most businesses don't: garage liability, for injuries and damage caused by your operations, and garagekeepers, for damage to customers' cars while they're in your care. Add workers' compensation once you have employees, tools and equipment coverage, commercial auto, and property insurance for the building and stock.
The main coverages
| Coverage | What it covers | Example |
|---|---|---|
| Garage liability | Bodily injury and property damage from your shop and your work | A customer trips in the bay; a wheel you mounted comes off |
| Garagekeepers | Customer vehicles in your care, custody and control | A car is damaged by fire, theft, vandalism or a collision on a test drive |
| Workers' compensation | Employee injuries; required in nearly every state once you have employees | A tech is hurt by a falling transmission |
| Tools and equipment | Your tools and scan equipment, including off-site | Tools stolen from a mobile van |
| Commercial auto | Vehicles your business owns: service van, tow truck, shop truck | An accident on a parts run |
| Commercial property | Building, lifts, inventory | A fire damages the shop |
Garagekeepers: legal liability or direct?
Garagekeepers comes in versions. Legal liability pays only when the shop is legally at fault. Direct coverage pays for damage regardless of fault, which keeps customers happy when a storm or a thief damages their car. Ask your agent which you have.
Mobile mechanics
Working at a customer's home or business still needs garage liability, and garagekeepers matters when you drive or tow the customer's car. Make sure your van is on a commercial auto policy and your tools are covered in the van. More in starting a mobile mechanic business.
Questions to ask your agent
- Does the policy cover test drives, towing and work done off-site?
- Is garagekeepers legal liability or direct, and what are the per-vehicle and per-location limits?
- Are customer cars stored overnight or outside covered?
- Does it exclude any work, such as ADAS calibration, EVs or performance modifications?
Paperwork reduces claims
Many disputes start with "that scratch wasn't there before". Walk around the car with the customer at drop-off and take photos, note existing damage and the odometer on the repair order, and keep the signed estimate and every authorization. That settles most disputes before they reach your insurer. A multi-point inspection also documents the condition of brakes and tires when the car came in.
A paper trail for every car. WrenchTicket's repair order keeps the odometer, the customer's concern and every authorization with name, method, date and time; the free inspection form records brakes, tires and fluids. Pro adds unlimited jobs and VIN history for $15 a month.
Open the repair orderQuestions
Does garage liability cover customers' cars?
Usually not. Damage to vehicles in your care is what garagekeepers coverage is for.
Is garage liability the same as general liability?
It's general liability adapted for auto businesses, including the risk from work you've completed. Many insurers sell it as part of a garage or auto service package.
Do I need insurance to register my shop?
Some states and cities require proof of insurance for shop registration or licensing, and landlords usually require it in the lease.
General information, checked October 31, 2026. Not insurance advice: read the policy and talk to a licensed agent.