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Garage Insurance Policy: Garage Liability Insurance Coverage

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Homepage > Business InsuranceGarage Insurance Policy: Garage Liability Insurance Coverage


If your business has a garage, then you should have garage insurance coverage. Whether you own a garage-keeping business, a garage sale business, an auto dealership with a garage, or you’re a full-blown mechanic, garage business insurance is essential if you want to avoid nasty and expensive financial costs to cover damage to your clients’ vehicles, etc. 

Your garage may be covered under your existing business/property insurance policy, depending on your business structure. However, if it isn’t, then you will need to purchase an additional garage insurance policy to ensure that the actual location where cars are stored is covered. 

In this article, we’re going to take an in-depth look at garage liability insurance coverage for small businesses. We’ll start by taking a look at some of the most common types of garage liability insurance. Then, we’ll go over the average garage liability insurance cost. Finally, we’ll give you a brief overview of some of the best garage insurance companies on the market. Let’s take a look! 

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How Much Does Garage Insurance Cost? 

By now, you’re probably wondering how much garage insurance costs. Well, assuming that you go with a general liability insurance policy for your garage, you’ll pay around $113 per month or $1,334 per year in premiums for a $1,000,000/$2,000,000 aggregate policy.

Garage Liability Insurance Cost

Based on our research and consumer data obtained from policyholders, these are the average rates that most small business owners pay for their garage liability insurance policies from different providers.

Insurance ProviderAverage Monthly RateAverage Annual Rate
Geico$108$1,295
State Farm$110$1,324
Progressive$122$1,463
Allstate$129$1,550
USAA$95$1,138

As always, these are just average rates. Your own rates could be considerably cheaper or a bit more expensive. Insurance providers take a range of different factors into account when deciding on the rate they’ll charge you, including:

  • Personal credit history. 

  • Previous insurance claim history. 

  • The city and state you’re doing business in. 

  • Your gross annual revenue. 

  • Whether you’re a previous customer of the insurance company. 

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garage insurance

Common Types of Garage Liability Insurance

Before we get into the different types of liability insurance, let’s start by defining liability insurance to begin with. Essentially, insurance coverage is designed to prevent you (the business owner) or your business from being financially liable in the event of a lawsuit or insurance claim against your business. 

There are a number of different types of liability insurance policies, but the most common is a general liability insurance policy. The aim of garage liability coverage is to protect you in the event that a customer claims that their vehicle was damaged or stolen while under your car. However, it can also protect your business from claims made by customers regarding workplace safety or injury and may also protect you from employee claims of the same nature. 

Of course, different types of garages will need to purchase different types of coverage and may require different insurance policy aggregate limits. For example, auto dealer liability insurance policies may need higher coverage than a simple garage-keeping business that doesn’t have customers coming in and out of a public office building all day. 

Now that you know a little bit more about how liability insurance works let’s take a few minutes to discuss some of the common types of garage liability insurance. 

Mechanic Garage Insurance

Mechanics may be required to pay higher premiums for mechanic liability insurance coverage. This is because auto mechanic work typically presents a higher-than-average risk of damage, both to customers and the vehicles they place in your care. So whether your employee scratches a vehicle, a customer trips over an air hose, or your hydraulic lift malfunctions and drops a car, your liability insurance policy will ensure that you don’t have to pay for the damage out of your own pocket. 

Insurance for Tools in Garage

If you own an auto detailing garage, mechanic shop, or even an auto dealership, there’s a good chance that you have some expensive tools and equipment in your garage. Unfortunately, this can often be an easy target for thieves. Thankfully, you can typically purchase a comprehensive theft insurance policy for your tools in the event that they’re stolen. The higher the values of the tools you’re insuring, the more you’ll typically pay in premiums. 

Garage Workshop Insurance

If you run an at-home garage workshop, you’ll still need to make sure the area where you store and work on vehicles is insured. The price of your premiums for garage workshop insurance will typically vary, depending on the neighborhood you live in, how many cars your garage holds, and if you’ve installed any safety measures in your workshop (such as cameras, security systems, flood lights, keypad entry, etc.). 

Garage Insurance For Car Dealers

Garage dealers insurance is a type of insurance policy designed for car dealers that have an onsite garage. Car dealers often have a garage where they keep nicer cars at night, work on their customers’ cars, or perform warranty repairs and servicing. It’s important to make sure that your garage space is insured - especially if you’re keeping clients’ cars overnight. 

Garage Liability Insurance for Car Dealers

Garage liability insurance for auto dealers is the most basic level of coverage that you’ll need to look into. As we talked about earlier, liability insurance prevents you from being financially liable if your client’s car is damaged while in your possession. This could cover minor scratches to large engine repairs, depending on the damage that was sustained. 

Dealer Garage Insurance Cost (Average Rate)

The average dealer garage insurance cost is $155 per month or $1,818 per year for a general liability garage insurance policy. Of course, this is just an average rate. Smaller dealers may pay closer to $1,000 per year, while larger dealers may pay closer to $2,300 per year. It all depends on your specific business and its risks.

Best Garage Liability Insurance Companies

Now that you know a little more about how garage liability insurance works and the average cost of coverage, we figured that we would give you a quick overview of three of the market’s top garage insurance providers: Geico, Progressive, and State Farm. 

After you complete the quote generation form, it’s likely that at least one (if not all three) of these insurance companies will contact you with a quote. That being said, it helps to know a little bit of the background of each, so you can make the most informed buying decision. Let’s chem them out! 

Garage Insurance Geico

If you need commercial garage insurance, then Geico is more than happy to provide you with a comprehensive policy at an affordable rate. Geico is the nation’s second-largest insurance company, and although they’ve received some complaints when it comes to handling claims, they have decent customer service and better-than-average rates. You’ll also be able to save big by bundling your Geico garage insurance policy with other Geico policies that you may have, such as home and auto. 

Pros:

  • Better-than-average rates. 

  • Offices around the country so getting in touch with agents is easy. 

  • Good customer service ratings. 

Cons: 

  • Handling small business claims can be somewhat tedious. 

Best For: Commercial garage insurance for auto dealers. 

Average Cost: $1,295 per year. 

Insuranks Rating: 4/5

Progressive Garage Insurance

If you need used car dealer liability insurance or you need to insure your small mechanic’s garage, Progressive is an excellent choice. They’ve received positive customer service ratings, and are well known for providing amazing deals and discounts for loyal customers or customers who bundle policies together. Claims are generally handled quickly and efficiently, and insurance payouts are typically more than fair. 

Pros:

  • Great customer service ratings. 

  • Discounts for loyal, long-standing customers, and bundling. 

  • Claims are usually handled fast and fairly. 

Cons: 

  • Phone wait times can be somewhat slow. 

Best For: Used car dealers and mechanics. 

Average Cost: $1,463 per year. 

Insuranks Rating: 4.5/5

State Farm Garage Insurance

Whether you need a small or large garage insurance policy, State Farm has you covered. State Farm is the largest insurance company in the United States and has developed a reputation for providing exceptional customer service. They specialize in providing affordable small business insurance across the central U.S. states as well as the east and west coast. With offices and agencies in almost every major city, it’s incredibly easy to get in touch with a representative about a claim. 

Pros:

  • Easy to get in touch with about claims. 

  • Decent rates for small business garage insurance. 

  • Outstanding customer service. 

Cons: 

  • Not as many discounts and deals as other major insurers. 

Best For: Small auto detailing garages or repair shops. 

Average Cost: $1,324 per year.

Insuranks Rating: 4.5/5


Get Free Garage Liability Insurance Quotes Today

Searching for, garage liability insurance near me?” Well, look no further! To get your free garage liability insurance quote, simply click ‘Get Quotes’ below. All it requires is for you to enter a few basic details about your business, follow the process and you’ll start receiving customized quotes from some of the country’s top commercial insurers! 

Comparing garage insurance quotes online is the best way, by far, to ensure that you’re getting a great deal. This allows you to compare garage insurance providers side-by-side to see which offers the best coverage for your commercial needs at the best rate.

Compare Garage Insurance Quotes

Get all the best quotes from leading providers in a click of a button!

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