INSURANCE FOR AUTO MECHANICS: HOW DOES IT WORK?

As an auto mechanic, you also run a business, and every business has its risks. You might think that, as a business owner, you don’t need anything special for your insurance. But that isn’t always true. It’s important to have auto mechanics’ insurance, garage coverage, or “gatekeepers” insurance, and each one needs to be customized to fit the needs of your business. You take care of expensive assets, valuable pieces, big pieces of equipment, and things that could be dangerous. Here’s what insurance for auto mechanics is and how it can help:


WHAT AUTO MECHANIC INSURANCE CAN COVER


Auto mechanics need a lot of the basics, like commercial property, business interruption, commercial general liability, and so on. They may also need coverages that are specific to running an autobody repair shop. What is covered by all-inclusive insurance for auto mechanics? Let’s take it apart and look at each part.


 
Property insurance for businesses


Commercial property insurance is a must-have for any business with a physical location. Damages caused by fire, storms, natural disasters, theft, and vandalism will be covered by default. Your business property is an important part of your business and what you do. If something goes wrong, you might not be able to do your job for a while. Think about your main building, any other buildings on your property, and the things on your property as well. Machines and tools may need their insurance, which is usually called “equipment breakdown insurance.”


 
Liability insurance for everything


Your business activities could cause a client or third party to get hurt or have their property damaged. Your general liability insurance (or CGL) would cover any risk for which you could be held responsible. This doesn’t include liability that comes from the way a special garage works. For that, you would need a special kind of liability insurance for auto mechanics.


 
Liability insurance for garages


Liability insurance for a garage protects you if you hurt someone else while working on a customer’s car. This protects your business if the car owner doesn’t have liability insurance, and it may also protect you if something happens to the customer’s car because of how your garage works. Say you are taking a test drive and you hit someone else’s car. Liability insurance for a garage would help pay for the damage.


 
Garagekeepers Insurance


Even though garage liability insurance and garage keepers insurance sound the same, they are not the same at all. Damages or losses to others while you have a customer’s car may be covered by your garage liability insurance. The cars you have in your shop are covered by garage keeper’s insurance if they get damaged while they are in your care. Here are some examples of coverage for garagekeepers: This insurance would cover the costs if your shop caught on fire while customers’ cars were parked inside; if a customer’s car was stolen from your shop; or if one of your employees got into an accident while test driving a customer’s car after putting on a new set of brakes. You might have to replace your customer’s car by law. This is what garage keeper’s coverage is for.


 
Keep in mind, though, that any business vehicles you own should be insured through a separate business auto policy.
 
These are just a few examples of the kinds of coverage you could get. Also, think about the following:

  • Insurance for business interruptions
  • Insurance for commercial vehicles (for vehicles owned by the shop)
  • Insurance for when things break down
  • Insurance for workers’ compensation
  • Income insurance for a business
  • Insurance for cyber liability
  • Commercial umbrella insurance
  • Professional Liability for Mechanics


Mechanics Any auto repair shop needs to have professional liability insurance. No one ever sets out to fix a car wrong, use a broken part, or put in the wrong part. Accidents happen. You need to have insurance that will cover these kinds of mistakes. Here are a few things we’ve seen.
 
A car was given a timing belt that was the wrong size. The customer drove the car back to his house. Shortly after, the belt broke, causing major damage to the engine. There had to be a new motor put in.
A customer’s car had the wrong set of brake pads put on it, which caused an accident. The mechanic’s professional insurance paid for both of these claims, so the shop owner didn’t have to pay for them out of his pocket.


AUTO MECHANICS INSURANCE: THINGS TO THINK ABOUT

It’s not easy to run an auto repair or auto body shop. There are a lot of things to think about, and they all move. In an autobody shop, you work with heavy machinery, tools, and vehicles, which can be dangerous. You should look over your auto mechanics insurance policy to make sure you have enough coverage for every part of your business and that your business is insured for its full replacement cost. Also, you’ll need to figure out what your liability limits are. Lawsuits cost a lot of money, and a limit of $500,000 may not be enough. Depending on your business and what your agent suggests, you may want to raise it to $1 million, $2 million, or even more.

You should also think about how many commercial vehicles you have at the same time. The size of your shop You’ll need to figure out how much garage keeper’s insurance you need based on the total value of all the cars you’re taking care of at once. Think about your busiest day and use that to figure out how much coverage you need. Talk to someone who works in insurance about this for other coverage options. They’ll be able to tell you what makes the most sense for your business, industry, and location.

COST OF INSURANCE FOR AUTO MECHANICS

Cost is always the big question when it comes to business insurance. How much does insurance cost for a car mechanic? The answer depends on a lot of things, like the type of business you run. Your insurance rates will change based on the following factors:

Location

The number of staff members

How big and wide is your garage?

How many cars do you have when you’re at your busiest?

History of insurance

The past and present of business

Past lawsuits

Things that belong to a business

Choices for coverage

We’ve seen plans that cover everything for as little as $2,500 per year for small shops. We have customers who pay more than $100,000 per year for large businesses with a lot of inventory, property, and commercial cars. As was said above, pricing is based on several things.

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