Best Business Insurance for Auto Repair Shops in 2024 (Top 10 Companies)
Progressive, Nationwide, and The Hartford offers the best business insurance for auto repair shops stand out with rates starting at an exceptionally low $150 per month. Providing exceptional customer service, competitive rates, comprehensive protection and peace of mind for your business needs.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: Oct 21, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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13,128 reviewsCompany Facts
Full Coverage for Auto Repair Shops
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3,019 reviewsCompany Facts
Full Coverage for Auto Repair Shops
A.M. Best Rating
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Pros & Cons
3,019 reviews
765 reviewsCompany Facts
Full Coverage for Auto Repair Shops
A.M. Best Rating
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765 reviews
Progressive, Nationwide, and The Hartford are leading the pack as the best business insurance for auto repair shops, offering tailored coverage at competitive rates.
Our Top 10 Company Picks: Best Business Insurance for Auto Repair Shops
| Company | Rank | Multi-Policy Discount | Low-Mileage Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 10% | 31% | Specialized Coverage | Progressive |
 | #2 | 20% | 20% | Comprehensive Protection | Nationwide |
 | #3 | 5% | 20% | BOP Coverage | The Hartford |
 | #4 | 15% | 30% | Competitive Rates | State Farm |
 | #5 | 25% | 22% | Local Agents | Allstate |
 | #6 | 25% | 30% | Safe-Driving Discounts | Liberty Mutual |
 | #7 | 13% | 15% | Tool/Equipment Coverage | Travelers |
 | #8 | 5% | 15% | Bundling Policies | Farmers |
 | #9 | 29% | 20% | Liability Coverage | American Family |
 | #10 | 15% | 15% | Body/Property Damage | Hiscox |
It signifies the assurance that your insurance needs will be efficiently addressed, allowing you to focus on running your business without worry or hesitation.
Don’t let expensive insurance rates hold you back. Enter your ZIP code above and shop for affordable premiums from the top companies.
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#1 – Progressive: Top Pick Overall
Pros
- Specialized Coverage: Offer tailored insurance policies for automotive repair businesses, effectively managing their distinct risks with comprehensive coverage.
- Multi-Policy Discount: Progressive advocates for companies to consolidate their insurance plans, which could lead to cost savings, as evidenced in Progressive insurance reviews and ratings.
- Low-Mileage Discount: Auto repair shops with lower mileage may benefit from Progressive, offering potential cost savings.
Cons
- Limited BOP Coverage: Despite being specialized, the Business Owner’s Policy (BOP) coverage offered by Progressive is relatively limited compared to some competitors.
- Potentially Higher Premiums: While specialized, Progressive’s premiums may be higher compared to other general business insurance providers.
#2 – Nationwide: Best for Security
Pros
- Comprehensive Protection: Nationwide is known for offering comprehensive protection, ensuring auto repair shops are covered for a wide range of risks.
- Multi-Policy Discount: Nationwide provides a multi-policy discount, encouraging businesses to bundle their insurance policies for potential cost savings.
- Low-Mileage Discount: Nationwide insurance review & ratings highlight its provision of beneficial discounts to auto repair establishments with lower mileage, resulting in reduced premiums for policyholders.
Cons
- Limited Specialization: While providing comprehensive coverage, Nationwide may lack the specialized focus on the unique risks faced by auto repair shops that some competitors offer.
- Complex Policies: Some customers may find Nationwide’s insurance policies complex and challenging to navigate, potentially leading to confusion.
#3 – The Hartford: Best for BOP Coverage
Pros
- Business Owner’s Policy (BOP) Coverage: Provides specialized Business Owner’s Policy (BOP) coverage designed specifically for auto repair shops, ensuring thorough protection.
- Multi-Policy Discount: The Hartford insurance review & ratings indicate that companies can capitalize on The Hartford’s multi-policy discount, which promotes combining different insurance policies to potentially save on costs.
- Low-Mileage Discount: Auto repair shops with lower mileage may qualify for The Hartford, contributing to cost-effective coverage.
Cons
- Limited Discounts: Compared to some competitors, The Hartford may offer fewer discounts, potentially leading to higher overall premiums.
- Tool/Equipment Coverage Focus: While beneficial, The Hartford’s emphasis on tool/equipment coverage may leave gaps in other areas important to auto repair shops.
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#4 – State Farm: Best for Optimizing Insurance
Pros
- Competitive Rates: State Farm offers competitive rates, making it an attractive option for auto repair shops looking for cost-effective insurance coverage.
- Multi-Policy Discount: Businesses have the opportunity to save with State Farm’s multi-policy discount, encouraging them to bundle different insurance policies.
- Low-Mileage Discount: Auto repair shops that have lower mileage could be eligible for discounts, which might lead to reduced overall premiums in a State Farm insurance review & ratings analysis.
Cons
- Limited Specialization: State Farm may lack the specialized focus on the unique risks faced by auto repair shops that some competitors with a more niche approach offer.
- Varied Customer Service: Customer service experiences with State Farm can vary, with some customers reporting positive interactions and others less satisfied.
#5 – Allstate: Best for Agent Covering
Pros
- Local Agents: Prioritizes local agents, fostering personalized service and strong customer-agent relationships with auto repair shops.
- Multi-Policy Discount: Companies can take advantage of Allstate’s multi-policy discount, which incentivizes bundling different insurance policies to save money.
- Low-Mileage Discount: Allstate insurance review and ratings highlight that auto repair facilities with decreased mileage could qualify for the company’s low-mileage initiative, resulting in more economical coverage choices.
Cons
- Potentially Higher Premiums: Despite offering comprehensive coverage, Allstate’s premiums may be higher compared to more specialized providers.
- Tool/Equipment Coverage Limitations: Allstate’s coverage for tools and equipment may have limitations, potentially leaving some auto repair shops with gaps in protection.
#6 – Liberty Mutual: Best for Safe Driving
Pros
- Safe-Driving Discounts: Liberty Mutual offers safe-driving discounts, promoting and incentivizing auto repair shops that prioritize safety.
- Multi-Policy Discount: Businesses may save money by bundling various insurance policies through Liberty Mutuals’ multi-policy discount.
- High Maximum Discounts: Liberty Mutual insurance review and ratings highlight the substantial opportunity for savings provided by the company’s generous maximum discount for safe driving, which motivates drivers to emphasize safety on the road.
Cons
- Potentially Higher Premiums: While offering comprehensive coverage, Liberty Mutual’s premiums may be higher compared to more specialized providers.
- Coverage Restrictions: Some businesses may find that Liberty Mutual’s policies have more restrictions or limitations compared to more flexible alternatives.
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#7 – Travelers: Best for Equipment Maintenance
Pros
- Tool/Equipment Coverage: Focus on tool and equipment coverage, offering auto repair shops safeguarding for their valuable possessions.
- Multi-Policy Discount: Businesses can benefit from Travelers’ multi-policy discount, encouraging the bundling of various insurance policies for potential savings.
- High Maximum Tool/Equipment Discount: Travelers insurance review & ratings highlight their generous discounts on tool and equipment coverage, offering considerable potential for savings.
Cons
- Potentially Higher Premiums: While specializing in tool/equipment coverage, Travelers’ premiums may be higher compared to more general business insurance providers.
- Less Specialization: Travelers’ focus on tool/equipment coverage may leave gaps in other areas important to auto repair shops.
#8 – Farmers: Best for Enhancing Business
Pros
- Bundling Policies: Farmers provides potential cost savings by bundling policies, giving businesses the chance to obtain cost-effective coverage.
- Multi-Policy Discount: Auto repair shops can benefit from Farmers’ multi-policy discount, encouraging them to combine different insurance policies for potential savings.
- Local Presence: Farmers insurance review & ratings highlight its strong local presence, with agents providing personalized service and convenient accessibility.
Cons
- Limited Discounts: Compared to some competitors, Farmers may offer fewer discounts, potentially leading to higher overall premiums.
- Potentially Higher Premiums: While offering bundling discounts, Farmers’ premiums may still be higher compared to more specialized providers.
#9 – American Family: Best for Ensuring Liability
Pros
- Liability Coverage: American Family specializes in liability coverage, providing comprehensive protection for auto repair shops against third-party claims.
- High Maximum Liability Discount: American Family insurance review & ratings showcase notable savings on liability coverage, which could result in considerable cost savings.
- Multi-Policy Discount: Businesses can benefit from American Family’s multi-policy discount, encouraging the bundling of various insurance policies for potential savings.
Cons
- Potentially higher premiums: While offering comprehensive liability coverage, American Family’s premiums may be higher compared to more specialized providers.
- Coverage restrictions: Some businesses may find that American Family’s policies have more restrictions or limitations compared to more flexible alternatives.
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#10 – Hiscox: Best for Optimum Shielding
Pros
- Body/Property Damage Coverage: Hiscox specializes in body/property damage coverage, ensuring auto repair shops are protected against damage to vehicles and property.
- Multi-Policy Discount: Businesses can benefit from Hiscox’s multi-policy discount, encouraging the bundling of various insurance policies for potential savings.
- Reputable Company: Hiscox is a well-established and reputable insurance company, known for its financial stability and reliability.
Cons
- Potentially Higher Premiums: While offering specialized coverage, Hiscox’s premiums may be higher compared to more general business insurance providers.
- Limited Specialization: Competitors might provide more tailored attention to the specific risks encountered by auto repair shops compared to Hiscox’s focus on fleet vehicle insurance.
Options for Auto Repair Shop Insurance Coverage
Protect your auto repair shop with comprehensive insurance coverage to safeguard against risks and liabilities, ensuring its longevity and success.
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The essential aspects of insurance tailored to auto repair shops, empowering you to make informed decisions to safeguard your business. Here are some key coverage options to consider:
- General Liability Insurance: Fundamental coverage for auto repair shops, protecting against injury or damage to third parties. Covers medical expenses, legal fees, and settlements from lawsuits. For more details, refer to our thorough guide called “Liability Insurance: A Complete Guide.”
- Commercial Property Insurance: Property insurance safeguards physical assets against damages from fire, theft, vandalism, or natural disasters, enabling cost recovery for repairs or replacements.
- Faulty Work Coverage: Errors and omissions insurance shields auto repair shops from claims due to mistakes during repairs, offering financial protection against legal repercussions for unsatisfactory workmanship.
- Garagekeepers Liability Insurance: Tailored for auto repair shops, this insurance safeguards customers’ vehicles in your care, covering repair or replacement costs if damage or theft occurs on your premises.
Ensure your auto repair shop’s longevity with tailored commercial coverage from a specialized insurance professional, simplifying complex insurance matters for long-term protection.
Extended Insurance Coverages for Auto Repair Shops
In addition to the primary coverage options mentioned above, there exists a spectrum of supplementary insurance coverages tailored specifically to fortify the protection of your auto repair business.
- Workers’ Compensation: Workers’ compensation insurance is legally mandated for employers, covering medical expenses and lost wages for employees injured or ill at work.
- Commercial Auto: If you have a fleet of vehicles for your auto repair business, commercial car insurance is crucial. It covers damages or injuries resulting from accidents involving your business vehicles.
- Business Interruption: Business interruption insurance helps cover the loss of income and operating expenses if your shop is temporarily unable to operate due to a covered event, such as a fire or natural disaster.
Customize coverage with an insurance professional for tailored protection for your auto repair shop. Options include minimum and full coverage, with prices ranging from $150 to $170 monthly from providers like Progressive and The Hartford.
Business Insurance Monthly Rates for Auto Repair Shops by Coverage Level
Insurance Company Minimum Coverage Full Coverage
Allstate $155 $255
American Family $155 $250
Farmers $160 $260
Hiscox $170 $280
Liberty Mutual $165 $275
Nationwide $150 $240
Progressive $150 $250
The Hartford $150 $260
Travelers $155 $265
State Farm $160 $270
When insuring an auto repair shop, there are two main options: minimum coverage and full coverage. Minimum coverage typically includes basic liability insurance required by law, ranging from $150 to $170 per month among companies like Progressive and The Hartford.
Full coverage insurance from Nationwide and Hiscox starts at $240 to $280/month, providing broader protection for your property and assets. Assess your business’s needs to choose between minimum and full coverage.
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Exploring the Expenses of Auto Repair Shop Insurance
Auto repair shop insurance costs vary based on factors. Understanding these influences helps anticipate premiums. Key factors include:
- Type of Coverage: Choosing coverage for your auto repair shop affects insurance costs. Options like general liability, commercial property, and garagekeepers liability come at different rates. For a thorough understanding, refer to our detailed analysis titled “Types of Car Insurance Coverage.”
- Coverage Limits: Choosing higher coverage limits increases protection but also raises premiums. Balancing safety and affordability is key when deciding on coverage limits, considering potential risks carefully.
- Location: Your auto repair shop’s location impacts insurance costs; areas with higher risk factors like climate and crime may lead to higher premiums.
- Size and Revenue of The Shop: The size and revenue of your auto repair shop play a role in determining insurance costs. Larger shops with more employees and higher revenue may have higher premiums due to increased liabilities.
- Claims History: Your shop’s claims history impacts insurance costs. Frequent or high-value claims can lead to higher premiums, while a clean claims history may result in more competitive rates.
- Certifications and Qualifications: Certifications like ASE, I-CAR (Gold class), or AAA approval can cut insurance premiums for shops. They signal quality and safety commitment, potentially reducing costs.
For precise auto repair shop insurance costs, gather quotes from multiple providers. Share your business details and coverage needs for personalized estimates.
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Remember that while the price is an essential factor, it’s equally crucial to consider the coverage provided and the reputation and financial stability of the insurance company.
Insurance Coverage Obligations for Auto Repair Shops
Auto repair shops are typically required to have insurance coverage due to the nature of their business and the potential risks involved. Here are some common insurance requirements for auto repair shops:
- General Liability Insurance: Auto repair shops often need this coverage, mandated by many states and municipalities. Landlords may also demand proof of general liability insurance for leasing commercial space.
- Workers’ Compensation Insurance: Employee-inclusive repair shops often necessitate workers’ comp insurance, legally. It supports injured workers with medical bills, lost income, and rehab expenses.
- Commercial Car Insurance: For business-related vehicle use like customer pickups or deliveries, commercial car insurance is usually necessary as personal policies may not offer sufficient coverage.
Staying compliant with insurance obligations is not only crucial for securing financial stability but also plays a pivotal role in fostering trust and confidence among key stakeholders in your auto repair business.
Other Requirements to Consider
Additional requirements may vary based on factors like your business operations, repair shop location, and contract types.
- Customers or Fleet Contracts: Some customers or fleet contracts may require proof of specific insurance coverages or minimum coverage limits before entering into a business relationship.
- Lenders or Lessors: If you finance or lease your business equipment, vehicles, or property, lenders or lessors may require you to maintain certain insurance coverages to protect their interests.
It’s important to review local laws, lease agreements, customer contracts, and other relevant documents to ensure compliance with any additional insurance requirements specific to your auto repair shop.
Partnering with a specialized commercial insurance agent for auto repair shops ensures proper coverage and compliance, safeguarding your business with tailored policies and legal protection.
Progressive offers customized coverage, competitive rates, and excellent service for your auto repair shop insurance needs.
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Case Studies: Auto Repair Shop Insurance in Action
Insurance has been crucial in protecting businesses from unexpected problems and risks. This shows how important it is for auto repair shops to have the right kind of insurance that matches the risks they face.
- Case Study #1 – General Liability Insurance: John’s Auto Repair Shop, a city staple, was saved by its general liability insurance when a customer slipped and got hurt in the reception area, covering medical and legal costs.
- Case Study #2 – Commercial Property Insurance: Sarah, a suburban Auto repair shop owner, used her commercial property insurance to cover fire damage, ensuring a quick business recovery.
- Case Study #3 – Faulty Work Coverage: Mike’s Auto Repair, known for quality service, dealt with a lawsuit after a technician’s error damaged a customer’s vehicle. Luckily, Mike’s insurance covered the faulty work, saving the shop’s reputation and finances. Read our detailed guide titled “What is Worker’s compensation?” for more information.
- Case Study #4 – Garagekeepers Liability Coverage: Dave’s auto repair shop provides vehicle storage. When a storm toppled a tree, causing damage to parked cars, his garagekeepers liability coverage covered repair costs, preventing financial strain and legal issues.
Auto repair shop owners can bolster their businesses against risks with insurance, safeguarding assets and mitigating liabilities from accidents, theft, and equipment breakdowns.
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Comprehensive insurance builds trust, enhances reputation, and safeguards financial health, fostering sustained growth in the competitive auto repair market.
In Summary: Safeguard Your Auto Repair Shop With Comprehensive Insurance
Essential auto repair shop insurance safeguards your business from diverse risks. Know key coverage options: general liability, commercial property, faulty work, and garagekeepers liability. Check out our ranking of the top providers titled “Best Car Insurance by Vehicle” for more detailed information.
Various factors impact auto repair shop insurance costs, including coverage type, limits, location, shop size, and claims history. Comparing rates and considering certifications can help find competitive rates without compromising quality. For tailored coverage and guidance, consult a commercial insurance professional specializing in auto repair shops.
Ready to find the best fleet insurance? Enter your ZIP code in our comparison tool below to see affordable commercial insurance rates in your area.
Frequently Asked Questions
What does auto repair business insurance cover?
Auto repair business insurance typically covers liabilities related to property damage, bodily injury, garage liability, workers’ compensation, and business property protection.
Refer to our resource on “Personal Injury Protection (PIP) Insurance: A Complete Guide” for additional information.
What factors affect the cost of auto repair shop insurance?
Factors such as the location of your shop, coverage limits, number of employees, types of services offered, and claims history can influence the auto repair shop insurance cost.
How much does auto repair business insurance cost?
The cost of business insurance for car repair shops varies depending on factors such as the size of your business, location, coverage options, and claims history. On average, it can range from $500 to $3,000 per year.
Which are the top auto repair shop insurance companies?
Some top auto repair shop insurance companies include Progressive, Nationwide, The Hartford, State Farm, Allstate, Liberty Mutual, and Travelers.
For additional details, explore our comprehensive resource titled “How much is car insurance?“
What is the difference between automotive business insurance and automotive repair shop insurance?
Automotive business insurance typically covers a wide range of businesses in the automotive industry, including repair shops, dealerships, and service stations. On the other hand, automotive repair shop insurance specifically focuses on coverage tailored to the needs of repair shops.
What are the essential coverages included in automotive repair shop insurance cost?
Essential coverages in automotive repair business insurance may include general liability, commercial property, garage liability, equipment breakdown, and business interruption insurance.
Start saving on your auto insurance by entering your ZIP code below and comparing quotes.
How can I find the best auto repair insurance companies?
To find the best auto repair insurance companies, you can compare quotes from multiple insurers, read reviews and ratings from other auto repair shop owners, and consult with insurance agents specializing in commercial insurance for automotive businesses.
Explore our resource on how to get free insurance quotes online for further insights.
Do I need business insurance for auto service repair?
Yes, business insurance is essential for auto service repair shops to protect against liabilities arising from accidents, property damage, or other unforeseen events.
What types of coverage are recommended for car repair shops?
Recommended coverage types for car repair shops may include general liability, commercial property, garagekeepers liability, workers’ compensation, and cyber liability insurance.
For a comprehensive overview, explore our detailed resource titled “Commercial General Liability (CGL) Insurance: A Complete Guide.”
How can I lower the cost of commercial insurance for auto repair shops?
To lower the cost of commercial insurance for auto repair shops, you can implement safety measures, maintain a good claims history, bundle policies with a single insurer, and explore discounts or credits offered by insurance companies.
What customers want in an auto repair shop?
The most obvious and essential point is the quality of work that you provide. Customers want to know that their car is in good hands and that you can fix any problem they have. They also want to see that you use high-quality parts and tools and that you follow the best practices and standards in the industry.
What is the most common type of auto repair shop?
Independent garages are the majority. They are privately owned, and often come with varying degrees of service delivery and pricing.
Enter your ZIP code below to explore which companies have the cheapest auto insurance rates for you.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.