What Is Auto Repair Shop Insurance?

Auto repair shop insurance (often called garage insurance) is a package of policies designed specifically for businesses that repair, service, or store vehicles. It protects your business from lawsuits, property damage, employee injuries, and losses involving customer vehicles.

Most shops need a combination of liability, property, and auto-related coverage to be fully protected.

Key Coverages for Auto Repair Shops

General Liability Insurance

Protects your shop if a customer is injured on your premises or if your operations cause damage to someone else’s property. This is the foundation of most insurance programs.

Garage Keepers Liability

One of the most important coverages for repair shops. It protects you if a customer’s vehicle is damaged while in your care, custody, or control — whether from fire, theft, vandalism, or accidents.

Commercial Property Insurance

Covers your building, tools, lifts, diagnostic equipment, and inventory against losses like fire, theft, and certain weather events.

Workers’ Compensation Insurance

Required in Arizona if you have employees. Covers medical expenses and lost wages if a technician or employee is injured on the job.

Business Auto Insurance

Protects vehicles your business owns, such as tow trucks, loaner cars, or parts delivery vehicles.

Umbrella / Excess Liability

Provides additional liability limits above your primary policies to protect against large claims or lawsuits.

How Much Does Auto Repair Shop Insurance Cost?

Insurance costs vary based on several factors:

• Number of employees

• Annual revenue

• Types of services (collision vs. mechanical vs. specialty)

• Value of customer vehicles on premises

• Claims history

• Location and building characteristics

In Arizona, many small to mid-sized repair shops typically see annual premiums ranging from $3,000 to $15,000+, depending on size and risk profile. Larger or specialty operations may require higher limits and broader coverage.

Insurance Requirements for Repair Shops in Arizona

While there isn’t a single “required policy,” most shops need:

• Workers’ compensation (if employees)

• Commercial auto (for business-owned vehicles)

• Liability coverage required by landlords or contracts

• Garage keepers coverage to protect customer vehicles

Many landlords, lenders, and commercial clients also require specific limits or additional insured endorsements.

Common Risks Auto Repair Shops Face

Over the years, we’ve seen claims such as:

• Vehicle fires inside repair bays

• Test-drive accidents

• Employee injuries from lifting or equipment

• Theft or vandalism of customer vehicles

• Slip-and-fall injuries in waiting areas

Having the right coverage structure can make the difference between a manageable claim and a major financial setback.

Why Auto Repair Shops Choose Professional Insurance Strategies

As a Phoenix-based independent agency specializing in commercial insurance, we understand the real-world exposures repair shops face every day.

What sets us apart:

• Local Arizona expertise

• Access to multiple top insurance carriers

• Experience insuring contractors and automotive businesses

• Hands-on coverage reviews and risk guidance

• Fast, responsive service when you need it most

We don’t just sell policies — we help you build a long-term risk management strategy as your business grows.

Who We Work With

We insure a wide range of automotive businesses, including:

• General auto repair shops

• Specialty and performance garages

• Brake and transmission shops

• Tire and service centers

• Fleet maintenance facilities

• Mobile mechanics

Frequently Asked Questions

Do I need garage keepers insurance if I don’t store vehicles overnight?

Yes — even short-term custody of vehicles can create liability exposure.

Can my policy cover customer test drives?

Yes, with the right garage liability structure.

What limits should a repair shop carry?

Most small to mid-sized shops carry at least $1M per occurrence / $2M aggregate, often with an umbrella for additional protection.

Can you bundle policies to save money?

Absolutely. Packaging coverage can often improve pricing and simplify renewals.

Get a Quote for Your Auto Repair Shop

If you own or operate an auto repair shop in Phoenix, Glendale, Peoria, Mesa, or anywhere in Arizona, our team is ready to help you compare options and design the right coverage.

Call: 623-463-9000
Request a Quote: Contact Professional Insurance Strategies

We’ll review your operations, identify potential gaps, and provide clear recommendations so you can focus on running your business with confidence.