Mechanic & Auto Repair Shop Insurance: Cost & Quotes From $11

 

In a world where automobiles dominate transportation, mechanics and auto repair shops are some of the backbones of the economy.

Whether you’re looking for car mechanic insurance or you run a larger shop and need a more comprehensive mechanic shop insurance policy, we’ve got you covered.

What Does Mechanic Liability Insurance Cover? 

Auto mechanic insurance always includes a liability policy. Mechanic liability insurance is designed to prevent you and your business from being financially liable for certain accidents or damage that may come to the cars you’re working on or storing in your auto repair garage. 

Liability insurance comes in different forms. For mechanics, the common ones are general liability insurance, garage liability insurance, and professional liability insurance. 

 

General Liability Insurance for Mechanics 

Mechanic general liability insurance will cover defense costs and settlements if a client, vendor, or any other third-party files a personal injury claim or property damage claim. The examples below make it easier for you to understand:

  • Your tools are lying around. The client came to check how you’re doing and tripped on the tools. He got injured and had to be treated for a broken hip. The client filed a claim and demand you pay for his pain and suffering

 

Mechanic Professional Liability Insurance 

Mechanic professional liability insurance covers defense costs and settlements if a client sues you for negligence, misrepresentation, violation of good faith, and other covered perils. This is available as a claims-made policy or occurrence policy

 

Mobile Mechanic Business Insurance

Some mechanics provide home service to clients. Literally speaking, they are what’s called mobile mechanics. If you’re one, know that there’s tailored that includes liability insurance and commercial auto insurance. 

Mobile Mechanic Liability Insurance

Liability insurance for mobile mechanics will protect you while you’re working on a client’s car at their residence or office. 

Since mobile mechanics typically aren’t using hydraulic jacks or other heavy machinery, liability insurance costs for small mechanics are usually quite affordable.  The most common liability insurance available for mobile mechanics is general liability and professional liability. 

 

Auto Repair Shop Insurance

Auto repair business insurance or car repair shop insurance is likely going to be the most involved. Most likely, you’ll have several employees working for you in the shop, so in addition to having a good liability insurance policy, you’ll also need other insurance policies. 

Liability Insurance for Auto Repair Shop

Auto repair shop insurance coverage offers liability insurance as the most basic protection. Liability insurance for your repair shop comes in the form of general liability insurance and professional liability insurance. 

We discussed this above but to recollect quickly, general liability insurance provides protection from personal injury claims, property damage claims, and advertising injury claims. 

On the other hand, professional liability insurance will cover claims filed because your auto repair shop committed or allegedly committed actions constituting errors and omissions.

 

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Commercial Property Insurance

Of course, you have to cover your auto repair shop’s commercial space against exposures. The only way to do this is through commercial property insurance.  Commercial property insurance will pay for reconstruction if your auto repair shop’s commercial building is destroyed by fire or extreme weather.

 If theft, fire, vandalism, extreme weather, and other covered perils only caused damage, commercial property insurance will pay for building repair expenses.

Workers Compensation Insurance

Your auto repair shop’s employees might experience and become injured. This threat is apparent. The job of workers’ compensation insurance is to pay for employee hospitalization, treatment, medication, and lost income compensation so that you don’t have to spend a single dime. 

Workers’ compensation insurance is a state-mandated coverage. You need this as soon as you have one or more employees. Refuse to get this insurance and there will be stiff penalties from state authorities. 

 

Mobile Auto Repair Business Insurance

Mobile auto repair business insurance is what you’ll need to purchase if you operate a mobile auto repair business. Generally speaking, mobile auto shops won’t have to pay as much in premiums as a large shop will. A typical mobile auto repair business insurance includes liability insurance, commercial auto insurance, and workers’ compensation insurance. 

Workers’ compensation insurance will cover any claims coming from employees who get injured while working for your auto repair business. On the other hand, commercial property insurance will protect all  equipment  from theft, severe weather damage, or destruction

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Equipment and Tools Insurance 

Tailored bicycle mechanic insurance includes stand-alone equipment and tools insurance. Equipment and tools insurance will cover your losses if your bicycle repair kit becomes damaged or lost on-site or off-site because of theft, vandalism, and other covered perils. 

Mechanic Garage Insurance

Some garage-keeping businesses also offer mechanic services to their clients while the car is being stored. The average garage keepers insurance cost is $96 per month. 

Typically, the type of repair service provided is simple in nature and doesn’t involve in-depth repairs. However, there is still a slightly higher risk, which can drive the cost of insurance up to $138 per month.

Auto Body Shop Insurance

If you specialize in fixing dents, cracks, and other ugly impressions on cars, then consider going for an auto body shop insurance. This consists of general liability, professional liability, and commercial property insurance. 

Mobile Mechanic Insurance Cost

On average mobile mechanic liability insurance costs between $49 per month or $588 per year for a $1,000,000/$2,000,000 general liability insurance.  In connection, here’s a table showing the rates of the top carriers:

Cost per Month  Cost per Year Best for
CoverWallet $49 $588 Mechanic insurance quotes comparison online
Geico $56 $672 Small to mid-sized auto mechanic shops
State Farm $61 $732 Self-employed mechanics

Bicycle Mechanic Insurance Cost 

While some bikes can cost a pretty penny, they are relatively simple, easy-to-repair machines. As such, the average bike mechanic liability insurance policy only costs about $35 per month or $420 per year. 

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Auto Repair Shop Insurance Cost

On average, auto repair shop owners pay between $107 per month or $1,284 a year for a $1,000,000/$2,000,000 general liability insurance. This is for a small to mid-sized auto repair shop. If you own a large auto repair shop, then your price could easily double. 

Mechanic Shop Insurance Cost

On average, mechanic shops pay $52 per month or $624 per year for a $1 million general liability insurance policy. Factors that affect the cost of premiums are location, business size, business history, claims history, and more. 

 

 

Best Auto Repair Shop & Mobile Mechanic Insurance Companies

 

CoverWallet  

CoverWallet’s mechanic insurance offers various options. Go for a general liability-only insurance plan if you don’t want to have comprehensive protection. If your business is growing, get general liability with commercial property insurance. 

But still, if you go for the second option, it’s best if you bundle them in a business owner’s policy so that you’re eligible to have workers compensation insurance. 

Average cost: $49 per month 

Our rating: 10/10

Pros

  • Get covered online
  • Pay for premiums online
  • Cancel a policy anytime
  • Stable rates

Cons

  • Not an insurance company but a broker selling the quotes of its partners

 

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Geico  

Geico has you covered whether you need auto mechanic shop insurance or a simple mechanic trade insurance policy. Geico offer some of the most competitive rates for small business insurance policies on the market. Their agents are available for claims 24/7, and a quick and efficient online web and smartphone app. 

Average cost: $56 per month 

Our rating: 9/10

Pros

  • Make claims 24/7
  • Easy-to-use online platform and smartphone app to handle your policy. 
  • Great rates on small business insurance policies

Cons

  • Due to the large size of the business, call wait times may be a bit longer than average

 

 

State Farm 

 

State Farm is an excellent insurance provider. They’ve received incredible ratings for customer service and offer very fair pricing as far as small auto repair shop insurance coverage goes. They also happen to be the biggest insurance provider in the United States. 

Average cost: $61 per month 

Our rating: 8/10

Pros

  • Best customer service ratings on the market
  • Competitive pricing when comparing quotes
  • Commercial insurance policies for small mechanics and large auto repair shops alike. 

Cons

  • Handling claims may take longer than average

 

 

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