Garage insurance

Garage insurance is a specialized commercial policy that covers businesses that sell, service, store, or park vehicles, such as auto dealerships and repair shops. Garage liability insurance protects against bodily injury and property damage claims arising from daily operations, for example, if a customer slips in the service area.

Most garage insurance policies include garagekeepers coverage, which insures customers’ vehicles in your care from perils like theft or fire, as confirmed by YourInsurance.info. In 2023, 71% of US auto repair shops with more than five employees maintained garagekeepers legal liability as part of their coverage (Insurance Information Institute).

Garage insurance can include endorsements like employee dishonesty, for example if an employee steals car parts. Insurers often require separate commercial auto coverage to protect company-owned service vehicles from collision and liability risks.

A standard garage policy excludes physical damage to owned vehicles unless you add specific physical damage coverage. Many lenders mandate proof of garage insurance before financing new car dealership inventories over $250,000.

Rates for garage insurance range between $1,500 and $5,000 annually depending on revenue, loss history, and location (CoverWallet 2023). Insurers determine premiums based on factors such as number of bays–e.g. garages with over ten bays typically pay higher rates due to increased risk exposure.

Garage insurance does not cover personal autos; it only applies to business-related vehicle exposures handled by companies like J.D. Byrider or Pep Boys.