Auto repair and body shop insurance
A repair shop's biggest exposure isn't the shop. It's the customers' cars: the one on the lift, the one on the test drive, the twelve parked outside overnight. Standard business policies don't cover any of them. The garage policy does, and getting the garagekeepers limits right is most of the job.
An auto repair shop needs a garage policy: garage liability for injuries and damage arising from the operation (including test drives), garagekeepers coverage for customers' vehicles in your care, and property coverage for the building, lifts and tools. Workers' compensation is mandatory from the first employee, and the New York DMV requires repair shops to be registered. Body shops add paint booth and pollution exposures.
The garage policy
- Garage liability: premises, operations, products and completed operations (the brake job that fails a week later), and auto liability for garage operations including test drives.
- Garagekeepers: customers' vehicles, on a direct primary basis with a limit set for the busiest night.
- Property: building or tenant improvements, lifts, compressors, diagnostic equipment, tools, parts inventory, and business income.
- Dealer or transporter plates if you use them, with the auto liability they require.
- Workers' compensation and DBL/PFL: cuts, burns, lifting injuries and the occasional vehicle fall.
- Pollution liability for body shops and anyone with waste storage.
- Cyber: shop management systems hold customer data and card numbers.
What carriers look at
| Factor | Why it matters |
|---|---|
| Employees' driving records | Test drives are auto liability; a bad record raises the whole shop |
| Number of bays, lifts and cars on premises | Sets garagekeepers limit and property values |
| Paint booth, welding, tire storage | Fire load; carriers want booth certification and extinguishing systems |
| Lot security | Fencing, lighting, cameras reduce theft claims |
| Building age and construction | Old masonry garages with wood roofs are rated up |
Faulty work
Garage liability covers the damage a bad repair causes, such as the engine that seizes after an oil change. It doesn't pay to redo your own work. Some shops carry a small faulty-work endorsement; most rely on goodwill and warranty. Know which you've chosen.
What I need to quote
- Services: mechanical, body and paint, tires, inspection, towing, sales.
- Employees, payroll and drivers' license numbers.
- Bays, lifts, the number and value of customer cars on a typical busy night.
- Building details, equipment values, and any environmental items (booth, tanks).
Request a quote. Available in Turkish.
Common questions
Short answers to what people ask before they call.
Still have a question? Call (518) 902-8822 or book a call.
What is garagekeepers coverage?
Coverage for customers' vehicles while in your care: fire in the shop, theft from the lot, a hailstorm, a technician backing one into another. It's written on a legal liability basis (pays when you're at fault) or direct primary basis (pays regardless of fault, which customers expect). The limit should reflect the total value of cars on the premises on a busy night, not the average.
Does garage liability cover test drives?
Yes; that's one of its main purposes. It covers bodily injury and property damage arising from garage operations, including employees driving customer vehicles. Employees' driving records are underwritten, so a technician with a poor record affects the whole shop's premium.
Do I need pollution coverage?
Body shops with paint booths, and any shop storing waste oil, solvents and coolant, have a pollution exposure that general liability excludes. A small pollution liability policy or endorsement covers spills, releases and cleanup. Underground storage tanks are underwritten separately and often need their own policy.
What does New York require to operate a repair shop?
Registration with the DMV as a repair shop under the Motor Vehicle Repair Shop Registration Act, displayed on the premises, plus a sign and written estimates. Inspection stations have additional licensing. The DMV doesn't mandate a specific insurance policy, but landlords and customers assume you have one, and dealers' plates require coverage.
Are tire shops, detailers and quick-lube shops different?
Same policy structure, lower rates for lighter work. Detailers still need garagekeepers because they hold customers' cars; mobile detailers need hired and non-owned auto and equipment coverage. Tire shops add product liability for the tires they sell and install.
I'm a mobile mechanic. What insurance do I need?
General liability with products and completed operations comes first: it covers injury or damage you cause in a customer's driveway or lot, and the repair that fails a week later. If you ever drive a customer's car, for a test drive or to move it, you need garage liability or an endorsement that covers that driving, and garagekeepers if a car stays in your care. Your van needs a commercial auto policy, because a personal policy usually excludes a vehicle used mainly for work, plus tools and equipment cover for what you carry. Workers' compensation is required once you have a helper. Fewer carriers write mobile repair than shops, so I'll tell you which pieces are available for your setup.
Get a quote for your business
Tell me what you do, where, and roughly what payroll looks like. Quotes come from the private carriers I represent, usually within days.
Where I work
I'm based in Clifton Park and work in person across six counties, the four on the map plus Warren and Washington, or by phone.
Close to the Clifton Park office: Clifton Knolls, Country Knolls, Rexford, Vischer Ferry, Jonesville, Groom's Corners and Halfmoon across Route 9 — I'll come to you at home.
Auto, home and business insurance by town
Medicare has its own county and town pages.