garage liability insurance

How Much is Garage Liability Insurance?

There are roughly 18,500 car crashes each day in the US. Almost anybody can recall a time when they or somebody they know got into a wreck. Although many people think of their vehicle as a safe place, it’s a lot more dangerous than they believe. 

The threat posed by vehicles doesn’t only exist on the road. Even in an auto repair shop, cars can pose a threat. Working with automobiles involves test driving and other maintenance, allowing accidents to occur. 

That’s why every auto repair shop needs garage liability insurance. This way, your business can protect itself from incidents caused by garage operations.

However, buying garage liability insurance isn’t always the cheapest thing. The cost of insurance often causes employers to hesitate before making their purchases.

If you’re worried about general liability insurance costs, you’ve come to the right place! We’ll explore these costs and how to find the best rates for your company in the guide below. 

What Garage Liability Insurance Does

Garage liability insurance is a type of policy that protects businesses in the automotive industry. It functions similarly to general liability insurance, covering injuries and property damage your business operations cause to non-employees.

For example, let’s say your mechanic takes a vehicle for a test drive and accidentally hits another car. This insurance would cover the damage done to that secondary automobile. 

You can usually divide garage liability coverage into three categories:

  • Bodily injury
  • Property damage
  • Products and complete operations

Once you purchase this insurance, it extends to the business or person named on the policy. This person or business becomes known as the “named insured.”

In addition to covering the named insured, the policy also covers their employees, partners, shareholders, and directors. The only caveat is that they must suffer injury or damage while performing their regular duties. 

People often mix up garage liability insurance with garage keeper’s insurance. This second type of policy covers damage done to personnel or to a customer’s property. In this way, it differs from the standard garage liability policy. 

Average Garage Liability Insurance Premiums

In general, most garage liability policies have premium rates ranging from $1,000 to $3,500. Typically, the coverage amount falls around $1 million. The average deductible is $1,000. 

As the premium range shows, not all policies cost the same. Several factors can influence your premium rates, such as your location, daily operations, and revenue. The number of employees you have can also influence the prices you pay. 

The degree of coverage the policy offers can also influence your prices. For example, a garage liability insurance provider may endorse your policy and include general liability coverage, too. This way, your policy can cover personal or advertising injury.

Different policy providers may offer various rates for this extra service. For this reason, finding a policy provider who meets your budget is critical to your business. We’ll discuss this further in the next section. 

Differences Between Garage Liability Insurance Providers

As mentioned above, various insurance providers offer different premium rates. Many providers focus on covering certain aspects of the automotive world. 

For example, some insurance providers offer better policies to businesses with multiple locations. These may provide coverage for cars stored at one location or undergoing work at another. 

Other policy providers may focus on garage owners who need to cover equipment damage or faulty repairs. These may offer services to connect you with insurance providers who cover several types of risks. 

When searching for a policy provider, take your business’s needs into account. What risks do you face most often? What are the things you most need to protect in your business? 

This approach helps you find a policy whose limits work for you. From there, compare insurance costs between similar policies to find the best one for your operation.

Other Factors that Influence Cost

Other factors can influence your premium costs besides your policy provider. For instance, the size of your business plays a bigger role than you might expect. 

This size can refer both to your finances and the scope of your premises. After all, larger auto garages often have much higher exposure to loss than smaller businesses. As such, a more sizeable business often pays higher premiums.

Another factor that influences your cost is your location(s). Auto repair shops in the city will likely see more frequent car damage. A town with more than the average number of car accidents will receive the same treatment. 

Some places also have higher claims ratios or levels of insurance fraud. In these cases, auto-related liabilities claims will likely increase. Each of these factors can affect your insurance rates. 

Finally, your policy limits can play a significant role in determining your policy cost. For example, we mentioned before that the average coverage amount for a policy often falls around $1 million.

However, lower limits also exist that can make your premiums more affordable. For example, a $300,000 limit will charge less on premiums than the $1 million limits.

A Note on Rising Premiums

As with other types of insurance, certain things could cause your insurance premiums to rise. Usually, these climbing rates occur when your company has to file insurance claims more frequently. 

Think about what happens to your insurance rates when you get into a car wreck. Something similar happens for your business. 

So, while your insurance can cover you in the event of an accident, try to avoid them at all costs. That may seem obvious, but don’t say we didn’t warn you!

Check Out Our Insurance Rates

Finding affordable garage liability insurance can be a challenge. Fortunately, you can simplify the process if you know where to look first. 

With that in mind, check out our insurance coverage! We offer excellent policy rates for several kinds of businesses. 

We don’t just offer garage liability insurance, either. Some of our other policies include garage keeper’s insurance, property insurance, and worker’s compensation.

So, check us out to see if we can meet your needs! Contact us today to receive a free quote

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