Auto repair shops pay $131 to $263 monthly for business insurance, paying around $153 per month based on coverage and location.
Get matched with cheap auto repair business insurance below.
Updated: October 14, 2025
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Auto repair business insurance costs range from $1,571 to $3,162 annually on average, depending on your coverage type, state and sub-industry.
Your auto repair insurance premiums vary based on your business location, claims history, the services you provide and your employee count.
Shop multiple business insurers, bundle coverage policies, raise your deductibles and pay annually to lower your auto repair business insurance costs.
We found average business insurance costs for auto repair companies for commonly needed coverage are as follows:
| BOP | $223 | $2,675 |
| General Liability | $153 | $1,839 |
| Professional Liability (E&O) | $82 | $989 |
| Workers' Comp | $152 | $1,828 |
Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
Your auto repair business cost for general liability coverage varies by location. Maine leads with affordable $132 monthly rates compared to the $154 national average, while Louisiana reaches $184 monthly.
| Alabama | $149 | $1,793 |
| Alaska | $151 | $1,809 |
| Arizona | $145 | $1,737 |
| Arkansas | $146 | $1,757 |
| California | $170 | $2,040 |
| Colorado | $151 | $1,817 |
| Connecticut | $166 | $1,990 |
| Delaware | $164 | $1,964 |
| Florida | $165 | $1,983 |
| Georgia | $155 | $1,861 |
| Hawaii | $176 | $2,110 |
| Idaho | $145 | $1,737 |
| Illinois | $168 | $2,011 |
| Indiana | $149 | $1,787 |
| Iowa | $145 | $1,744 |
| Kansas | $148 | $1,780 |
| Kentucky | $142 | $1,702 |
| Louisiana | $184 | $2,207 |
| Maine | $132 | $1,587 |
| Maryland | $146 | $1,748 |
| Massachusetts | $160 | $1,922 |
| Michigan | $145 | $1,735 |
| Minnesota | $143 | $1,719 |
| Mississippi | $153 | $1,841 |
| Missouri | $151 | $1,808 |
| Montana | $152 | $1,824 |
| Nebraska | $144 | $1,733 |
| Nevada | $173 | $2,078 |
| New Hampshire | $152 | $1,822 |
| New Jersey | $173 | $2,075 |
| New Mexico | $154 | $1,843 |
| New York | $177 | $2,125 |
| North Carolina | $132 | $1,587 |
| North Dakota | $133 | $1,593 |
| Ohio | $142 | $1,700 |
| Oklahoma | $151 | $1,815 |
| Oregon | $142 | $1,702 |
| Pennsylvania | $176 | $2,110 |
| Rhode Island | $168 | $2,012 |
| South Carolina | $157 | $1,887 |
| South Dakota | $143 | $1,713 |
| Tennessee | $149 | $1,787 |
| Texas | $154 | $1,848 |
| Utah | $145 | $1,745 |
| Vermont | $147 | $1,759 |
| Virginia | $139 | $1,669 |
| Washington | $174 | $2,083 |
| West Virginia | $160 | $1,922 |
| Wisconsin | $150 | $1,798 |
| Wyoming | $141 | $1,695 |
Note: We based these general liability rates on auto repair businesses with two employees across different states. Your rates will vary based on your location, claims history and the types of services you provide.
Your auto repair business will have different rates for workers' compensation insurance depending on your state. North Carolina provides the most affordable coverage at $131 monthly, while New York reaches $176 monthly. State regulations and claim histories influence these pricing differences across the country.
| Alabama | $150 |
| Alaska | $139 |
| Arizona | $145 |
| Arkansas | $147 |
| California | $169 |
| Colorado | $150 |
| Connecticut | $165 |
| Delaware | $163 |
| Florida | $165 |
| Georgia | $154 |
| Hawaii | $163 |
| Idaho | $145 |
| Illinois | $169 |
| Indiana | $147 |
| Iowa | $144 |
| Kansas | $148 |
| Kentucky | $143 |
| Louisiana | $174 |
| Maine | $131 |
| Maryland | $145 |
| Massachusetts | $159 |
| Michigan | $145 |
| Minnesota | $143 |
| Mississippi | $153 |
| Missouri | $151 |
| Montana | $150 |
| Nebraska | $143 |
| Nevada | $174 |
| New Hampshire | $152 |
| New Jersey | $173 |
| New Mexico | $153 |
| New York | $176 |
| North Carolina | $131 |
| Oklahoma | $142 |
| Oregon | $142 |
| Pennsylvania | $176 |
| Rhode Island | $166 |
| South Carolina | $156 |
| South Dakota | $141 |
| Tennessee | $149 |
| Texas | $153 |
| Utah | $146 |
| Vermont | $146 |
| Virginia | $138 |
| West Virginia | $158 |
| Wisconsin | $149 |
Note: We based these workers' comp rates on auto repair businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.
Your professional liability cost will vary by state. Nationwide, this coverage averages $82 monthly. North Carolina offers the most affordable rates at $71 monthly, while New York commands the highest premiums at $96 monthly.
| Alabama | $82 |
| Alaska | $73 |
| Arizona | $78 |
| Arkansas | $79 |
| California | $91 |
| Colorado | $82 |
| Connecticut | $90 |
| Delaware | $90 |
| Florida | $89 |
| Georgia | $85 |
| Hawaii | $84 |
| Idaho | $77 |
| Illinois | $89 |
| Indiana | $80 |
| Iowa | $78 |
| Kansas | $81 |
| Kentucky | $78 |
| Louisiana | $94 |
| Maine | $71 |
| Maryland | $79 |
| Massachusetts | $86 |
| Michigan | $80 |
| Minnesota | $78 |
| Mississippi | $82 |
| Missouri | $83 |
| Montana | $81 |
| Nebraska | $77 |
| Nevada | $93 |
| New Hampshire | $81 |
| New Jersey | $93 |
| New Mexico | $83 |
| New York | $96 |
| North Carolina | $71 |
| North Dakota | $72 |
| Ohio | $76 |
| Oklahoma | $77 |
| Oregon | $76 |
| Pennsylvania | $94 |
| Rhode Island | $92 |
| South Carolina | $85 |
| South Dakota | $77 |
| Tennessee | $81 |
| Texas | $82 |
| Utah | $79 |
| Vermont | $78 |
| Virginia | $76 |
| Washington | $94 |
| West Virginia | $87 |
| Wisconsin | $82 |
| Wyoming | $77 |
Note: We based these professional liability rates on auto repair businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Auto repair business insurance costs depend heavily on your location, with BOP insurance cost varying dramatically across states. Business owners can expect to pay anywhere from $190 in North Dakota to $263 in Louisiana for the same coverage.
This $73 monthly difference means auto repair shops in the Peace Garden State save nearly $900 annually compared to those in the Pelican State. Several factors drive these regional variations, including local claim frequencies, state regulations and regional economic conditions that affect business risks.
| Alabama | $217 |
| Alaska | $221 |
| Arizona | $211 |
| Arkansas | $212 |
| California | $246 |
| Colorado | $221 |
| Connecticut | $241 |
| Delaware | $239 |
| Florida | $243 |
| Georgia | $223 |
| Hawaii | $247 |
| Idaho | $208 |
| Illinois | $238 |
| Indiana | $217 |
| Iowa | $213 |
| Kansas | $216 |
| Kentucky | $204 |
| Louisiana | $263 |
| Maine | $194 |
| Maryland | $216 |
| Massachusetts | $238 |
| Michigan | $213 |
| Minnesota | $207 |
| Mississippi | $224 |
| Missouri | $220 |
| Montana | $225 |
| Nebraska | $214 |
| Nevada | $251 |
| New Hampshire | $223 |
| New Jersey | $256 |
| New Mexico | $228 |
| New York | $260 |
| North Carolina | $191 |
| North Dakota | $190 |
| Ohio | $209 |
| Oklahoma | $215 |
| Oregon | $204 |
| Pennsylvania | $252 |
| Rhode Island | $249 |
| South Carolina | $232 |
| South Dakota | $204 |
| Tennessee | $216 |
| Texas | $225 |
| Utah | $206 |
| Vermont | $214 |
| Virginia | $202 |
| Washington | $252 |
| West Virginia | $232 |
| Wisconsin | $217 |
| Wyoming | $200 |
Note: We based these BOP rates on auto repair businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.
Auto repair business insurance costs vary widely by provider, ranging from $113 to $220 monthly. These price differences reflect each insurer's market focus and risk appetite, which shifts based on profitability and coverage expansion opportunities.
| Chubb | $175 | $2,095 |
| Coverdash | $129 | $1,545 |
| Hiscox | $164 | $1,971 |
| NEXT Insurance | $131 | $1,576 |
| Nationwide | $113 | $1,357 |
| Progressive Commercial | $154 | $1,842 |
| Simply Business | $150 | $1,804 |
| The Hartford | $127 | $1,519 |
| Thimble | $162 | $1,943 |
| biBERK | $220 | $2,644 |
Auto repair business insurance costs vary based on multiple factors insurers consider when determining your policy rates.
Neighborhood demographics and local competition shape both pricing power and theft exposure. Shops in areas with higher vehicle values or elevated property crime encounter different premium structures than rural locations.
Garage keeper's liability claims stem from customer vehicles damaged or stolen while in your care. Previous losses involving fires, lift accidents or theft of customer cars will keep your insurance expenses elevated across future policy periods.
Working on standard passenger cars and light trucks represents the baseline for most repair shops. Specializing in exotic vehicles, heavy-duty trucks or classic car restoration means handling higher-value inventory that requires enhanced garage keeper's coverage.
Mechanics have burns, crush injuries and chemical exposure throughout their workday. Workers' compensation rates for automotive technicians run moderately high, with premiums scaling based on your total payroll and the number of bays you staff.
Oil changes, brakes and routine maintenance occupy the lower risk tier for auto shops. Adding collision repair, frame straightening or performance modifications introduces work where errors can compromise vehicle safety and trigger serious liability claims.
Bay count and customer throughput indicate your total exposure to potential errors. Small operations with two bays earning $200,000 have entirely different underwriting than multi-location shops with eight bays generating $750,000 annually.
Garage keeper's legal liability protects customer vehicles in your possession, covering 10-20 cars at once. Most shops carry $250,000 to 500,000 in garage keeper's coverage, though high-end specialty shops need higher limits.
Lifts, diagnostic scanners, air compressors and tool collections accumulate substantial value. Collision centers with frame machines and paint booths carry dramatically more equipment investment than shops focused on basic mechanical repairs.
ASE certifications and manufacturer training programs demonstrate technical competence to insurers. Shops employing certified technicians and maintaining modern diagnostic equipment secure better rates than those without documented qualifications.
Reducing your auto repair insurance costs starts with smart comparison shopping and proven savings tactics. Follow our step-by-step guide to find cheap business insurance for your auto repair shop and build a more secure business over time.
Auto repair shops need general liability for customer injuries and property damage, garage keepers liability for vehicles in your care during service and professional liability for faulty repairs causing accidents or breakdowns.
Add commercial property for equipment and inventory, workers' compensation for mechanic injuries, pollution liability for oil spills and hazardous waste, and garage liability for test drives and loaner vehicles.
Auto repair premiums vary based on services offered. Full-service shops with body work and painting pay more than oil change or tire shops. Automotive-focused insurers understand ASE certifications, environmental regulations for fluids and solvents and garage keeper exposure better than general carriers.
Combining general liability, garage keepers, and garage liability saves 18% to 26% compared to purchasing separately. Many insurers offer auto repair packages that include pollution liability and professional liability at reduced bundle rates.
Higher garage keepers deductibles of $1,000 to $2,500 can reduce premiums by 19% to 27%, but consider how often customer vehicles are damaged during service. Keep professional liability deductibles low since faulty repair claims leading to accidents can result in substantial lawsuits and injury claims.
Monthly installment plans add 5% to 10% in processing fees, which, on a $9,500 auto repair policy, costs $475 to $950 extra annually. Paying upfront eliminates these charges and earns 6% to 9% discounts from automotive carriers.
Review your policy whenever you hire mechanics, add collision repair or diagnostic services, or invest in specialized equipment like alignment machines or paint booths.
If you've obtained ASE certifications, implemented quality assurance procedures or upgraded environmental compliance with proper waste disposal systems, these improvements can qualify for premium discounts.
Auto repair shop insurance costs $131 to $263 each month, but your actual premium will vary based on where you’re located, your claims record and the size of your business. To save, request quotes from several insurers, bundle your policies, raise your deductible or pay for the year upfront.
Auto repair business owners commonly ask about insurance costs. We answered the most frequent questions below:
Professional liability (E&O) is the cheapest at $82 monthly, but it only covers errors in your services. Most auto repair businesses need general liability coverage ($153 monthly) since it protects against customer injuries and property damage lawsuits.
You'll pay more in these states. General liability in California runs $170 monthly (versus $153 national average), and BOP costs $246 monthly (versus $223 average). New York is similar at $177 and $260, respectively.
Combining policies with one insurer delivers greater savings than purchasing coverage separately. Insurance companies reward auto repair businesses with discounts when bundling commercial auto, general liability and property insurance together.
Higher premiums result from multiple risk factors: operating specialized automotive equipment, handling hazardous materials like oils and chemicals, employing skilled technicians, maintaining expensive diagnostic tools, and facing liability from vehicle damage during repairs.
Higher deductibles reduce monthly premiums but increase out-of-pocket costs per claim. Consider your available cash reserves and expected claim frequency when deciding.
Auto repair business workers' compensation costs vary by state, spanning from $131 monthly in North Carolina to $176 monthly in New York for coverage.
Yes, BOP insurance is worth it for auto repair companies. BOP costs $223 monthly but combines general liability, commercial property and business interruption coverage. Bundling saves money versus purchasing policies individually, making BOP valuable for auto repair shops.
Shop annually when your policy renews. Compare quotes from at least three insurers to uncover savings, especially after hiring staff or expanding your service offerings.
We collected auto repair business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
We used a typical small auto repair business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the auto repair industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
