Auto Repair Shop Insurance

Insurance for auto repair and service shops

Auto repair shops carry risks most businesses never face: customer vehicles on lifts and in the lot, test drives, heavy equipment, and flammable materials. Archer Insurance Agency is an independent agency, so we compare carriers that specialize in garages and auto service to build coverage that protects your shop, your customers' cars, and your team.

Shops we insure

• General auto repair and mechanic shops

• Collision and auto body shops

• Tire, brake, muffler, and quick-lube centers

• Transmission, diesel, and specialty repair shops

• Detailing, tint, and accessory installers

• Towing and roadside service operators

Common coverage for auto shops

Every shop is different. These are coverages auto shops often consider, and we will help you choose the ones that fit your services, the vehicles in your care, and your budget.

• Garage liability: injuries and property damage arising from your shop operations, such as a customer tripping in a service bay or a repair that causes an accident

• Garagekeepers coverage: damage to customer vehicles while they're in your care, custody, or control, from fire, theft, vandalism, or a collision during a test drive

• Commercial property: your building, lifts, diagnostic equipment, parts inventory, and loss of business income after a covered loss

• Tools and equipment (inland marine): tools and equipment that leave the shop, including mobile repair

• Workers' compensation: technicians face lifts, heavy parts, and chemicals, so injuries are common and coverage is required in most states

• Commercial auto: tow trucks, shop vehicles, and parts runners

• Commercial umbrella: extra limits above your garage liability and auto policies

• Cyber liability: protection for the scheduling, invoicing, and payment systems your shop runs on

Garagekeepers coverage explained

Garage liability alone usually doesn't pay for damage to a customer's vehicle while you have it. Garagekeepers fills that gap and can be written two ways:

• Legal liability: pays only when the shop is legally responsible for the damage.

• Direct coverage: pays for covered damage regardless of fault, which keeps customers happy and avoids disputes.

We'll help you choose limits based on the number and value of vehicles you typically hold overnight.

What affects the cost of auto shop insurance?

• The services you offer (body work and painting rate differently than oil changes)

• Payroll, number of technicians, and annual revenue

• How many customer vehicles you hold and their value

• Building construction, fire protection, and how you store flammables

• Claims history, deductibles, and the limits you choose

Auto shop insurance FAQs

What's the difference between garage liability and general liability?

Garage liability is built for auto service businesses. It covers injuries and damage from your shop operations, including completed repairs, which a standard general liability policy may not address for garages.

Does my policy cover a customer's car if it's stolen from my lot?

Only if you carry garagekeepers coverage that includes theft. Many shops don't realize this until after a loss, so we review it with every quote.

Do I need coverage for test drives?

Yes. Accidents during test drives are one of the most common auto shop claims. Garagekeepers and garage liability together usually address the vehicle and any injuries or damage to others.

Ready for a quote for your shop? Call 865-392-8200 or request a quote. You can also see all of our commercial insurance options.