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If you own a car wash business, then you’re going to need a comprehensive car wash insurance policy.It ensures you have protection against claims if a customer’s car is damaged on your premises or due to your cleaning machinery.
If you’re considering starting a car wash facility or starting a mobile car wash business then this article features the cost, the policy available and the best companies offering the policy.
Car Wash Liability Insurance
As the name implies, liability insurance is designed to protect you from financial liability.
This means that if a claim is filed against your business, your insurance company will pay on your behalf. In addition to paying the claim, they’ll also handle any legal fees, if applicable.
Here are the various types of car wash liability insurance coverage:
- Public liability insurance
- General liability insurance
- Property damage liability insurance
- Professional liability insurance
Public Liability Insurance
Public liability insurance protects your business from claims made by customers or the general public if they experience an accident due to your business operations.
For example, this coverage would protect you if a customer claimed that they tripped and fell on your property then sustained injuries or had their personal effects damaged.
General Liability Insurance
General liability insurance policy typically encompasses several aspects of public liability insurance. In fact, you don’t need to get public liability insurance if you already have general liability insurance.
You use general liability insurance to pay for defense costs and compensation in case a client, vendor, or any other third party decides to file a personal injury claim or property damage claim.
But understand that general liability insurance’s usefulness lies in its comprehensiveness. General liability insurance will provide more protection if you decide to get its optional policies. These are:
- Advertising injury coverage
- Products and completed operations coverage
A third party might file a claim against your business for committing slander, libel, copyright infringement, false advertising, and other related acts. Advertising injury coverage will cover defense costs and compensatory payments on your behalf.
Professional Liability Insurance
Professional liability insurance protects you from claims filed because your business committed the following:
- Negligence – An employee was cleaning a customer’s car and caused damage. The client filed a claim after knowing that the employee wasn’t giving his full attention while working
- Misrepresentation – While billing a customer, the employee registered the wrong figures. This resulted in the client paying more than what should be paid
- Violation of good faith – Your business is hired by a company to clean its cars. The contract states 10 cars should be cleaned. However, you only managed to finish 5 because trouble happened
When buying general liability insurance, it’s good to get professional liability insurance too. By having these policies, you’ll have comprehensive protection against third-party claims.
Mobile Detailing Insurance and Mobile Car Wash Insurance
Mobile auto detailing insurance policies include commercial auto insurance, general liability insurance, and professional liability insurance for starters.
You don’t need public liability coverage included in mobile car wash detailing insurance since there’s general liability coverage already.
Mobile Car Valeting Insurance
Many mobile car valeting services also provide car washing or detailing services while the driver is occupied. Since valets will usually be driving the cars, there is an increased risk associated with the business.
Not only will you risk damaging the exterior or interior of the car, but you’ll also be exposing it to the risk of a crash on the road or even theft .
Mobile car valeting insurance typically includes professional, public, property damage, and general liability policies.
Car Detailing Insurance Cost
Small car detailing businesses can expect to pay between $30 and $40 per month or $360 and $480 per year for a standard general liability insurance policy having $1 million – $2 million coverage.
Keep in mind that these are just average rates. The amount you’ll pay depends on various factors such as;
- The business size,
- States
- Cities your business operates in
- Gross revenues
- how many employees you have
- Your years of experience in business
- what type of cars you detail.
Mobile Auto Detailing Business Insurance Cost
Mobile auto detailing insurance cost is slightly more expensive due to the fact that you’ll often be working in different locations.
On average, mobile car detailing business insurance costs between $32 and $49 per month, or between $384 and $588 per year, for mobile car wash detailing liability insurance coverage.
Car Wash Insurance Cost
A car wash insurance program typically costs more as there’s an increased risk of claims due to equipment malfunction, property damage, or injury while customers are at your car wash.
The average cost of premiums in America is $60 per month or $720 per year for $1,000,000 general liability insurance coverage.
Rates may vary significantly depending on:
- The size of your car wash business
- The car wash type
- What type of equipment your business has
- How many employees are working at the car wash
- Its location
- Years in business
- Revenues
- Claims history
- And other factors that determine the risk your insurer carries by financially covering your specific car wash business
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Mobile Car Wash Insurance Cost
Mobile car wash insurance is usually priced lower since mobile car washes tend to involve less risk, as you’re not working on expensive-to-repair interior finishes, which means they’re a little cheaper.
On average, the cost of insurance for mobile car wash businesses is between $27 and $36 per month, or between $324 to $432 per year, for a $1 million general liability insurance coverage.
Best Mobile Auto Detailing Insurance Companies
CoverWallet
CoverWallet isn’t an insurance company. It’s actually an insurance broker that sells the car wash and auto detailing insurance quotes of its partners. CoverWallet also has ready-made insurance plans that feature the coverages of its partners.
These plans are as follows – general liability insurance for detailing business and car wash business with products and completed operations coverage.
Average cost: $61 per month
Our rating: 10/10
Pros
- Cancel a policy anytime
- Stable rates
- Pay premiums online
- Has online live insurance agents
Cons
- Not an insurance company but an insurance broker
- Doesn’t offer tailored hand car wash insurance
Thimble
Thimble car wash and car detailing insurance only offers general liability insurance. This company allows you to buy the policy as a short-term insurance that only lasts for hours, weeks, days, or months.
Other separate insurances you can get for more protection are workers compensation insurance and tools and equipment insurance.Inland marine insurance is available if you’re a mobile detailer.
Average cost: $63 per month
Our rating: 9/10
Pros
- Get covered online
- Choose to have zero deductible
- Decide to only have coverage for hours, weeks, days, or months
Cons
- Takes time to process claims
NEXT
NEXT offers general liability insurance, commercial property insurance, and garage keepers insurance in its insurance tailored for car wash businesses. The amount of insurance money depends on what kind of insurance plan you decide to get.
Average cost: $67 per month
Our rating: 8/10
Pros
- Get an instant live certificate of insurance
- Has a specialized faulty-work coverage that’s different from professional liability insurance
- Garage keepers liability insurance offers up to $100,000 in coverage
Cons
- Insurance process is very digitized
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State Farm Insurance
State Farm doesn’t have an insurance product specially underwritten for your auto detailing business or car wash business.
Instead, you can get coverage through the company’s insurance for auto service businesses that’s available to alarm installers, towing businesses, car wash businesses, auto detailing businesses, and more.
Average cost: $68 per month
Our rating: 7/10
Pros
- Has numerous contact channels and quickly resolves issues with customers
- File and track a claim online
- Has an online agent finder so that you immediately get in touch with a State Farm agent
- 19,000+ agents all over the US
Cons
- Provides online quotes but you have to purchase insurance through a State Farm agent
Progressive
Progressive’s tailored insurance for auto detailing small business insurance only includes general liability insurance and commercial auto insurance. The company also offers a business owner’s policy and workers compensation insurance for auto detailing businesses.
Average cost: $76 per month
Our rating: 6/10
Pros
- Has a business insurance program that streamlines the insurance process and gives a up to 15% discount on commercial auto insurance quotes
- File a claim online or via phone
Cons
- Customer reviews from Progressive don’t favor the company much
- Doesn’t have tailored car detailing insurance
