Auto repair business insurance costs vary significantly across coverage types, and understanding these differences helps you budget effectively. MoneyGeek's analysis shows monthly premiums range from $82 for professional liability coverage to $223 for a business owner's policy (BOP).
How Much Does Auto Repair Business Insurance Cost?
Auto repair shop insurance rates begin at $82 per month, though your specific business details will determine your final cost. Your shop's location, size, services and claims history are important in calculating your premium.
Discover cheap auto repair business insurance below.
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Updated: August 15, 2025
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Key Takeaways
Auto repair business insurance costs range from $82 to $223 monthly, depending on your coverage type.
Your auto repair insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable auto repair business insurance costs.
Average Auto Repair Business Insurance Cost Overall
| BOP | $223 |
| General Liability | $153 |
| Professional Liability (E&O) | $82 |
| Workers Comp | $152 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Auto Repair Business Insurance Cost for General Liability Coverage by State
Your auto repair business insurance cost for general liability coverage varies by location. Maine offers the lowest rates at $132 monthly compared to the $154 national average, while Louisiana tops the list at $184 monthly.
| Alabama | $149 |
| Alaska | $151 |
| Arizona | $145 |
| Arkansas | $146 |
| California | $170 |
| Colorado | $151 |
| Connecticut | $166 |
| Delaware | $164 |
| Florida | $165 |
| Georgia | $155 |
| Hawaii | $176 |
| Idaho | $145 |
| Illinois | $168 |
| Indiana | $149 |
| Iowa | $145 |
| Kansas | $148 |
| Kentucky | $142 |
| Louisiana | $184 |
| Maine | $132 |
| Maryland | $146 |
| Massachusetts | $160 |
| Michigan | $145 |
| Minnesota | $143 |
| Mississippi | $153 |
| Missouri | $151 |
| Montana | $152 |
| Nebraska | $144 |
| Nevada | $173 |
| New Hampshire | $152 |
| New Jersey | $173 |
| New Mexico | $154 |
| New York | $177 |
| North Carolina | $132 |
| North Dakota | $133 |
| Ohio | $142 |
| Oklahoma | $151 |
| Oregon | $142 |
| Pennsylvania | $176 |
| Rhode Island | $168 |
| South Carolina | $157 |
| South Dakota | $143 |
| Tennessee | $149 |
| Texas | $154 |
| Utah | $145 |
| Vermont | $147 |
| Virginia | $139 |
| Washington | $174 |
| West Virginia | $160 |
| Wisconsin | $150 |
| Wyoming | $141 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Auto Repair Business Insurance Cost for Workers’ Compensation Coverage by State
Your auto repair business's cost for workers' compensation varies by state. North Carolina offers the lowest rates at $131 monthly, while New York charges the highest at $176 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Auto Repair Business Insurance Cost for Professional Liability Coverage by State
Professional liability insurance rates depend on your location. Our research shows the national average is $83 monthly. North Carolina offers the most affordable cost for professional liability at $71 monthly, while New York has the highest E&O insurance rates at $96.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Auto Repair Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show significant state-by-state cost differences for auto repair shops. Monthly premiums range from $190 in North Dakota to $263 in Louisiana for the same coverage.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Auto Repair Business Insurance Cost
Insurance companies look at several factors to set your auto repair business insurance rates. Understanding these costs helps with budget planning. We break down these factors below.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas prone to natural disasters or with high crime rates increases your risk; this causes premium variations between states.
Safety record and claims History
Previous claims impact future premiums, often for three to five years. A single workplace injury or customer vehicle damage claim can increase your general liability rates at renewal.
Types of vehicles serviced
The types of vehicles you service affect your insurance costs. Luxury and high-performance vehicle repairs carry higher liability risks than standard passenger cars. Commercial truck repairs also increase risk exposure due to higher repair costs and specialized equipment needs.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding mechanics and service technicians increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Different auto repair services carry varying risks. Body work and painting involve chemical exposure risks, while transmission repairs and engine overhauls present different mechanical hazards.
Business size and revenue
Higher annual revenue means higher premiums since insurers view larger operations as having greater exposure to claims. A small repair shop with $200,000 in annual revenue pays less than a large facility earning $2 million yearly.
Coverage limits
Higher coverage limits provide better protection but cost more. Choosing between different coverage amounts affects your premium, with higher limits increasing costs proportionally.
Equipment and Vehicle Values
The value of your repair equipment affects insurance costs. Shops with multiple vehicle lifts, diagnostic computers, and specialized tools require higher coverage limits than basic repair operations, increasing premium costs.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Auto Repair Business Insurance
Auto repair shop owners can lower their business insurance costs through smart comparison shopping and risk management strategies. Here are proven ways to reduce your premiums now and build long-term savings through better business practices.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your auto repair shop needs prevents overpaying for unnecessary coverage. Garage liability insurance protects against customer vehicle damage, while workers compensation covers employee injuries. Commercial property insurance safeguards your equipment and building.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who can compare multiple carriers for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining garage liability, property insurance and workers compensation with one carrier typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out of pocket for small claims, but save money on regular insurance payments.
- 5
Pay annually instead of monthly
Monthly payment processing fees can add up quickly. Paying your premium annually often eliminates these fees and may qualify you for additional discounts from your insurer.
- 6
Review and adjust your coverage annually
Your insurance needs change as your auto repair business grows. Review your policy yearly to ensure coverage matches your current operations. Remove unnecessary coverage and adjust limits based on your business size and risks.
Insurance for Auto Repair Business Cost: Bottom Line
Auto repair business insurance costs range from $82 to $223 monthly, with your location, claims history and business size affecting your premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Auto Repair Business Insurance Cost: FAQ
Business owners often ask about auto repair insurance costs, so we compiled answers to the most common questions below.
What is the cheapest type of auto repair business insurance?
Professional liability insurance costs $82 monthly, making it the most affordable option.
Most auto repair businesses require general liability insurance to protect against customer injuries and damage claims during service operations.
How much can I save by bundling my auto repair business insurance policies?
Bundling multiple policies through BOP, which offers the best value. Many insurers provide discounts when combining essential coverages into one package.
What factors make my auto repair business insurance more expensive?
General liability insurance typically costs $153 per month, making it the most cost-effective coverage option for auto repair businesses.
Several factors affect auto repair insurance costs: business location, claims history, staff size, repair services offered, equipment value and credit rating.
Should I choose a $500 or $2,500 deductible for my auto repair business insurance?
Higher deductibles lower your monthly insurance costs, but require more cash when filing claims. Consider your business's cash reserves and claim likelihood when choosing your deductible amount.
How much does workers' compensation cost for auto repair businesses by state?
Workers' compensation costs for auto repair businesses range from $131 monthly in Maine to $176 monthly in New York, varying significantly based on each state's requirements and risk factors.
Is business owner's policy (BOP) worth the extra cost for auto repair companies?
BOP insurance bundles key coverages into one policy, offering better value than purchasing individual policies.
How often should I shop around for auto repair business insurance quotes?
Review your auto repair business insurance annually during renewal. Compare at least three insurers to find better rates, particularly when your business grows or changes.
How We Determined Auto Repair Business Insurance Costs
We collected auto repair business insurance quotes from companies across different states. To make sure we compared apples to apples, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small auto repair businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively 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.