Mechanic & Auto Repair Shop Insurance

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In a world where automobiles dominate transportation, mechanics and auto repair shops are some of the backbones of the economy. From diesel mechanics who work on our buses and public transportation to small self-employed mechanics, mechanic shop insurance is a must-have for such businesses

Whether you’re looking for self-employed mechanic insurance or you run a larger shop and need a more comprehensive mechanic shop insurance policy, we’ve got you covered. Below, we’ll explain what mechanic liability insurance covers and explain some of the common types of mechanic insurance that you may need to consider. Then, we’ll give you a quick breakdown of the average mechanic insurance cost for various types of coverage options. 

Lastly, we’ll provide you with a brief review of two of the best mechanic and auto repair shop insurance companies. 

It’s time to take a look under the hood of this business insurance type!

What Does Mechanic Liability Insurance Cover? 

Mechanic liability insurance is a type of auto mechanic insurance that 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. 

Given the high cost of cars these days, it’s more important than ever to make sure that your car repair business is adequately insured. Otherwise, you could end up on the hook for tens of thousands of dollars due to a small accident on your or your employees’ part.

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mechanic insurance

Now that you know one of the reasons why mechanic insurance is so important let’s take a few minutes to discuss some of the common types of mechanic businesses that need insurance and what type of insurance coverage is most important for those businesses.

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 to purchase a workers’ compensation insurance policy. This will cover any claims coming from employees who get injured while working on a vehicle in your shop. If you own the shop itself, you’ll also want to keep a property insurance policy to protect the shop and the equipment inside from theft, severe weather damage, or destruction. 

Liability Insurance for Auto Repair Shop

Liability insurance is one of the most important policies to purchase for your garage. As mentioned above, your liability policy is mainly designed to protect you from claims coming from customers saying that you damaged their vehicle. However, a general liability policy can also cover you in the event that a customer is injured while on your business premises. 

Mobile Auto Repair Business Insurance

Mobile mechanic business insurance is what you’ll need to purchase if you operate a mobile auto repair business. Generally speaking, mobile mechanics won’t have to pay as much in premiums as a large shop will. Since they don’t have employees and don’t need to insure a large shop, they’ll just need mechanic liability 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. 

Many mobile mechanics also specialize in diesel mechanic work. Diesel trucks can often be more complex to work on and cost more money, so your liability policy may be slightly more expensive for a diesel mechanic insurance policy than a standard car mechanic policy. 

Bicycle Mechanic Liability Insurance 

Although it’s a completely different topic, we’ve often received questions about how much bicycle mechanic liability insurance costs. 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

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 for liability coverage. 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 for liability coverage only.

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Mechanic Insurance Cost 

So, just how much does mechanic insurance cost? Depending on the type of mechanic work your business provides, it could cost as little as $50 per month or upwards of $200 per month. Below, we’ll provide you with some of the average rates charged by some of the top insurance providers on the market, based on the type of repair work.

-Mobile Mechanic Insurance

Mobile mechanics have a relatively low risk compared to a full-blown auto repair shop or auto dealership. Typically, most mobile mechanics do fine with a general liability insurance policy, although some also purchase a separate insurance policy for their tools and equipment. 

Another common insurance policy that some mobile mechanics purchase is a commercial auto insurance policy. If you use a vehicle to transport your tools to and from your home to your client’s home, then you can register it as a commercial vehicle and get additional coverage that your personal auto insurance policy won’t necessarily provide. 

Mobile Mechanic Insurance Cost

On average mobile mechanic liability insurance costs between $49 and $79 per month for a $1,000,000/$2,000,000 aggregate policy. Here are some of the average rates offered by top insurers. 

Insurance ProviderAverage Monthly RateAverage Annual Rate
State Farm$59$708

Auto Repair Shop Insurance Cost

If you operate a larger auto repair shop, then your insurance costs are going to be a good bit more expensive. This is due to several factors, such as the fact that you’ll have employees working for you, a public lobby where customers walk into, more garage space, and the added risk of keeping your client’s vehicles overnight. 

On average, auto repair shop owners pay between $107 and $156 per month for a $1,000,000/$2,000,000 aggregate policy. This is for a small to mid-sized auto repair shop. If you own a large dealership or an extra-large auto repair shop, then your price could easily double. 

Mechanic Shop Insurance Cost

To give you a good idea of how much money to set aside for your insurance budget, we’ve put together a simple table outlining the average cost of insuring a mechanic shop. This data was obtained from consumer surveys and is just an average. Keep in mind that your own rates could be a little bit cheaper or costlier. 

Insurance ProviderAverage Monthly RateAverage Annual Rate
State Farm$148$1,776

Mechanic & Auto Repair Shop Insurance Quotes Comparison

The best way to great a great deal and find an affordable auto mechanic and auto repair shop insurance policy is to compare quotes from different insurance companies. By comparing quotes, you’ll be able to look at the best insurers side-by-side, see which companies offer the best rates and the best coverage. 

To start comparing right now, simply click ‘Get Quotes’ below, enter some basic info on your business, a contact email, and you’ll receive cheap, competitive rates from top insurers online!

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Best Mechanic Insurance Companies

If you’re looking for a great mechanic insurance policy, then you can’t go wrong with either Geico or State Farm. Both companies offer excellent, comprehensive insurance policies for self-employed mechanics and full-fledged auto repair shops as well. Here’s a brief overview of each to help you make the most informed decision. 

Geico Mechanic Insurance

Geico has you covered whether you need auto mechanic shop insurance or a simple mechanic trade insurance policy! Not only is Geico the second-largest insurance provider in the nation, but they also offer some of the most competitive rates for small business insurance policies on the market. Geico makes handling claims a breeze with offices across the country, agents available for claims 24/7, and a quick and efficient online web and smartphone app. 


  • Make claims 24/7. 

  • Easy-to-use online platform and smartphone app to handle your policy. 

  • Great rates on small business insurance policies. 


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

Best For: Small to mid-sized auto mechanic shops. 

Average Cost: $1,632 per year

Insuranks Rating: 4/5

State Farm Motor Mechanic Insurance

If you need business insurance for an auto repair shop, then State Farm is an excellent choice. They’ve received incredible ratings for customer service and offer very fair pricing as far as small auto repair shop insurance goes. They also happen to be the biggest insurance provider in the United States, meaning that you’ll be able to get in touch with agents and representatives in person or over the phone, no matter what time of day it is. 


  • Best customer service ratings on the market. 

  • Competitive pricing when comparing quotes. 

  • Commercial insurance policies for small mechanics and large auto repair shops alike. 


  • Handling claims may take longer than average. 

Best For: Self-employed mechanics, small auto repair shops. 

Average Cost: $1,776 per year. 

Insuranks Rating: 5/5

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