Auto Repair Shop Insurance – What Does It Cost?

Auto repair shop insurance costWhat does auto repair shop insurance cost?

Have you recently seen the cost of your auto repair shop insurance go up?

Curious what other insurers offer and what the cost of garage insurance is?

Experiencing problems with your insurance company over your auto repair business insurance?

In this video and post, I’m going to answer those questions and more.

So, what does insurance for auto repair shops cost?

That’s of course a difficult question to answer because of the variety of types of auto repair businesses that exist, but I’m going to give you some ideas on the subject and what drives the cost up and down for different businesses.

Every type of auto repair or auto service shop is different.  

Some garage operations are fairly low hazard from a liability perspective – as an example a shop that installs custom sound systems versus a general repair shop. 

The sound system garage for the most part isn’t fixing or repairing parts of a car that could result in an accident versus the repair shop that could mistakenly make a repair to a steering system or brake assembly that could have catastrophic results. 

So the type of auto repair shop will have an impact on the insurance costs you pay.

Other factors that affect the auto repair insurance costs are things like the types of cars you work on and the limits of coverage you have.  For example, a repair shop that focuses on say Porsches may have several high-value vehicles on premises at any one time so their limits of garage keepers insurance will be higher than a repair shop that works mostly on domestic vehicles.

Your claims history will also impact your insurance pricing. 

A shop with a clean history of no claims should and will pay less than a similar shop with a couple of claims over the past 5 years. 

It pays to operate a safe shop and have a written safety manual that’s shared with all employees – existing and new – and reinforced on a regular basis.

But what does it cost?

Look, I could quote numbers like some other websites that are ridiculously low like the average repair shop insurance premium is $58 per month, but I think that’s a disservice to you and to me. 

It’s nothing more than a bait and switch tactic which doesn’t address the customized needs every customer has.

I think it makes more sense to speak to an independent agent or broker that represents several different insurers so they can work with you to customize a package and then get multiple quotes for you, based on the same set of specifications.

How do you keep insurance costs for auto repair shops low?

Good question.  In my experience, the best thing you can do to keep your insurance premiums low focuses on risk control.  Things like:

Keep your shop well organized and clean free of clutter.  Good housekeeping will help prevent fires, trips, and falls, and make a good impression on any insurance company inspectors who may come for a visit.

As I mentioned earlier, have a written shop safety manual and use it in the training and onboarding of new employees.  We can help develop a program like this with you.

Store flammables in approved containers and dispose of rags and debris properly to prevent fires.

Encourage employees to use personal protective devices such as safety glasses and hearing protection when applicable.

Protect customer vehicles in your possession – this includes having the parking area fenced, locked, and lighted.  You may also consider deploying surveillance cameras 

You may wonder, why are some insurance companies typically more expensive and some cheaper than others?

The prices that insurance companies charge auto repair shops are not static, meaning pricing moves up and down in response to certain market conditions. 

Some insurers are traditionally more competitive for garage insurance than others because they select the best performing shops for insurers. 

Meaning auto repair businesses that have no or few claims. Some insurers are more forgiving and work with shops that have had problems in the past so their claim results may not be as good and they need to charge higher premiums, in general.

In my experience, it pays to get quotes from different insurers to make a true comparison. But I don’t think it’s in your best interest to do that with multiple brokers.  Instead, work with one broker who can bring your account out to several insurers at the same time for quotes.

Why do I recommend that?  First off for consistency.  You agree with that broker what insurance coverages you need and that broker should get you quotes all based on the same parameters. 

Second, it saves you time and effort, and third, there are a limited number of insurers out there writing auto repair shops, and they all will only quote your account for one broker at a time. 

If you engage multiple brokers at the same time, you’ll like to get them bumping into each other in the marketplace trying to get quotes and it just results in a mess.

Here’s the bottom line.

As an auto repair shop, your insurance needs and issues are unique.  You should work with an expert to help you get the best insurance coverage you can at the most competitive premium you can.  Focus on getting the protection right, and the pricing will follow.

Want to see how I can help?

Give me a call or drop me an email and let’s chat – in fact, click the button below to get started! Let’s talk and see if we’re a good fit for your business.

I promise no high-pressure selling gimmicks or tricks.  Just some honest conversation to cover your issues, problems, or thought and to see if we might be a good fit.

Thanks.

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