How much is auto repair shop insurance?

Mechanics and auto repair shops pay an average of $54 per month, or $652 per year, for general liability insurance.

General liability insurance helps pay for customer injuries, customer property damage, and other third-party accidents.

If a customer slips on an oily floor and breaks their ankle, a general liability policy would pay for their medical bills, or your legal defense costs if they sue. It would also pay for repairs if they broke their smartphone in the fall.

General liability insurance also covers copyright infringement, defamation, and other advertising injuries. It can pay for accusations that you published an image on your website without permission, or slandered a competitor on social media.

You might need general liability coverage to sign a commercial lease, secure a contract with a larger client, or get a business license. It shows your clients and partners that they're protected against financial losses from the most common risks.

Below is the average general liability policy for mechanics who buy from TechInsurance:

Premium: $54 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

You may need to purchase additional protection for your unique risks, such as:

• Garage liability insurance to cover any accidents that happen in your garage.
• Garage keepers insurance to protect customer vehicles in your care.

The cost of general liability insurance depends on numerous factors, including your business operations, the policy limits and deductible you choose, the size and location of your business, the number of employees you have, and any exclusions or endorsements on your policy, such as an additional insured.

Auto repair businesses pay an average of $149 per month, or $1,787 per year, for a business owner's policy (BOP).

A business owner's policy bundles general liability coverage with commercial property insurance at a lower cost than buying these policies separately. You can often add other types of coverage as well.

A BOP provides insurance for your office and garage in the event of a fire, storm, or theft. It also protects against common liability claims, such as a customer who suffers a bodily injury or property damage at your shop.

Common add-ons include business interruption insurance (or business income coverage) to cover employee wages and other operating costs during a temporary closure. Another option is equipment breakdown insurance, which pays for losses if an air compressor, engine hoist, or vehicle lift breaks down unexpectedly.

This is the average business owner's policy for auto repair shops that buy from TechInsurance:

Premium: $149 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

Auto repair companies that are eligible for a BOP usually are small in size (fewer than 100 employees) and low risk. A similar option for medium-sized businesses or those with higher risks is a commercial package policy (CPP), which costs an average of $101 monthly or $1,208 annually for mechanics.

The cost of a business owner's policy depends on factors such as the value of your business property, the policy limits you choose, your location, and whether you need coverage for a garage.

Car repair shops spend an average of $150 per month, or $1,796 annually, on workers' compensation insurance.

Workers' comp pays for medical expenses and disability benefits in the event of a workplace injury. For example, if a mechanic suffers a burn from a hot exhaust pipe, this policy would pay for their medical treatment and lost income while they recover.

Workers' compensation policies usually include employer's liability insurance. This type of coverage pays for legal costs if an employee sues their employer over an injury.

State laws often require businesses to secure workers' comp as soon as they hire their first employee, but that's not always the case. It's required in California and New York for every business with employees, in Florida for every business with four or more employees, and it's optional for most companies in Texas.

Even though workers' comp may not be required for sole proprietors or independent contractors, it's still recommended. Medical bills are expensive, and most health insurance plans can deny claims for injuries that happen on the job.

The cost of workers' compensation mostly depends on the number of employees you have and their occupational risks. Other factors, such as the cost of healthcare in your state, can also impact your premium.

Auto repair shop owners pay an average of $102 per month, or $1,227 per year, for commercial auto insurance.

If your company vehicle gets into an accident, this policy will help pay for any damages you caused. It will also cover your legal fees if you're sued.

You can buy coverage for other risks as well. For instance, collision insurance will pay for repairs if your car is damaged in a collision, while comprehensive coverage pays for damage to your vehicle from other sources, such as hail, theft, and vandalism.

Almost every state requires this insurance coverage for repair shops that own a vehicle, as personal auto insurance won't cover business driving. To protect personal, rented, and leased vehicles used for work, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto policies can vary considerably. Some of the most important factors are your employees' driving records, the policy's limits and deductible, the number of vehicles you own, and the specific coverages you choose.