NEXT earned our top spot for the best small business insurer for automotive companies for its competitive rates and coverage. However, we recommend comparing quotes from our other top picks, including The Hartford, biBerk and Simply Business.
Best Automotive Business Insurance
Updated: July 9, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT is the best business insurance company for automotive firms because it offers the best balance of affordability and customer service.
NEXT offers the cheapest overall commercial insurance rates across multiple coverage types for automotive businesses.
To shop for business insurance for your automotive business, research industry risks, talk to agents and other automotive business owners and compare multiple options.
Best Business Insurance for Automotive Companies
| NEXT Insurance | 96 | 98 | 94 |
| The Hartford | 94 | 96 | 91 |
| biBERK | 92 | 94 | 91 |
| Simply Business | 91 | 92 | 83 |
| Nationwide | 91 | 89 | 91 |
| Thimble | 89 | 94 | 81 |
| Progressive Commercial | 89 | 92 | 81 |
| Chubb | 88 | 86 | 87 |
| Hiscox | 88 | 91 | 87 |
| Coverdash | 85 | 80 | 83 |
*All scores were based on an automotive business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. NEXT
pros
Lowest rates for general liability and BOP
Strong digital tools for small shops
High customer satisfaction rating
cons
Limited options for high-risk auto services
COMPANY HIGHLIGHTS
NEXT offers the most affordable business insurance for automotive companies, with standout rates for general liability ($28 per month) and BOP coverage ($40 per month). It’s a great fit for small mechanics, auto detailers, or tire shops that want to manage policies online with ease. NEXT also earned a 4.7‑out‑of‑5 rating from thousands of small business customers. Its platform is easy to use and built for businesses that prioritize speed and simplicity. However, those with high-risk services like performance upgrades or bodywork may need more specialized carriers.
2. The Hartford
pros
Cheapest professional liability insurance
Excellent BOP and workers' comp pricing
A+ AM Best financial strength rating
cons
Digital experience less modern than newer carriers
COMPANY HIGHLIGHTS
The Hartford is a solid choice for established auto shops that want a trusted, full-service insurer. It offers the lowest professional liability rate for automotive companies at $67 per month and ranks highly for workers' comp and BOP affordability. Backed by an A+ from AM Best, The Hartford is a reliable option for multi-location garages, collision repair shops, or growing businesses that need long-term risk management. Its quoting experience isn’t as fast as digital-first competitors but makes up for it with service and support.
3. biBerk
pros
Strong value on BOP and general liability
Backed by Berkshire Hathaway
Good for multi-policy bundling
cons
Fewer customization options than some competitors
COMPANY HIGHLIGHTS
biBerk delivers great value for automotive businesses that want affordable coverage without sacrificing reliability. It ranks in the top three for both BOP and general liability pricing, with BOP averaging $58 per month. As a division of Berkshire Hathaway, it brings strong financial stability and trustworthy claims handling. The platform is best suited for mid-sized shops that want to manage policies themselves and save on premiums. That said, businesses needing highly tailored or niche coverages may need more flexible carriers.
Cheapest Business Insurance for Automotive Firms
Based on our study of business insurance pricing, NEXT offers competitive rates for automotive companies, leading in general liability and BOP coverage. However, this applies only to automotive companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Automotive Companies
With an average monthly rate of $28, NEXT offers the lowest-cost general liability insurance for automotive companies. Also consider quotes from Thimble and The Hartford, the next-cheapest options.
| NEXT Insurance | $28 | $331 |
| The Hartford | $42 | $505 |
| Thimble | $42 | $503 |
| biBERK | $45 | $543 |
| Simply Business | $49 | $586 |
| Progressive Commercial | $51 | $607 |
| Hiscox | $55 | $664 |
| Nationwide | $56 | $676 |
| Chubb | $62 | $747 |
| Coverdash | $111 | $1,327 |
Cheapest Workers' Comp Insurance for Automotive Companies
For automotive businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $50 per month or $602 yearly. You may also find competitive rates with Progressive Commercial, Hiscox, Simply Business and Coverdash
| Thimble | $50 | $602 |
| Progressive Commercial | $54 | $649 |
| Hiscox | $56 | $672 |
| Simply Business | $56 | $670 |
| Coverdash | $57 | $688 |
| The Hartford | $57 | $682 |
| NEXT Insurance | $58 | $701 |
| biBERK | $59 | $708 |
| Nationwide | $63 | $755 |
| Chubb | $67 | $810 |
Cheapest Professional Liability Insurance for Automotive Companies
The Hartford offers the most affordable professional liability insurance options for automotive companies, with low average monthly rates of $67. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Thimble.
| The Hartford | $67 | $803 |
| NEXT Insurance | $69 | $827 |
| Progressive Commercial | $72 | $860 |
| Hiscox | $74 | $890 |
| Simply Business | $74 | $884 |
| Thimble | $74 | $891 |
| Coverdash | $76 | $913 |
| biBERK | $77 | $929 |
| Nationwide | $81 | $971 |
| Chubb | $87 | $1,046 |
Cheapest BOP Insurance for Automotive Companies
NEXT provides the most affordable business owner's policy (BOP) coverage for automotive companies, with an average yearly cost of $481 for bundled general liability and property protection. That's a savings of roughly $166 annually compared to The Hartford, the second most affordable option.
| NEXT Insurance | $40 | $481 |
| The Hartford | $54 | $647 |
| biBERK | $58 | $701 |
| Thimble | $64 | $774 |
| Simply Business | $73 | $877 |
| Progressive Commercial | $76 | $911 |
| Hiscox | $83 | $1,002 |
| Nationwide | $85 | $1,022 |
| Chubb | $94 | $1,124 |
| Coverdash | $160 | $1,917 |
What Type of Coverage Do You Need for an Automotive Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses that use vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance before starting work. A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED AUTOMOTIVE BUSINESS COVERAGE
Automotive companies should carry general liability insurance because it covers common risks like bodily injury, property damage and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. It's especially helpful for automotive businesses with commercial contracts or high-risk jobs.
Coverage Recommendations by Automotive Company Type
We've broken down risk considerations and coverage recommendations by automotive business type, ordered from highest to lowest risk for claims frequency. This helps businesses understand their exposure and choose the right level of coverage.
Automotive Business Type | Coverage Types Recommendation | Most Common Insurance Claims | Most Common Reasons For Litigation |
|---|---|---|---|
Collision Repair & Body Shops | General Liability, Garage Liability, Workers’ Comp, Commercial Property, Tools & Equipment, Pollution Liability | Property damage, employee injury, chemical exposure | Faulty repairs, bodily injury, environmental violations |
General Auto Repair Shops | General Liability, Garage Liability, Workers’ Comp, Commercial Property, Equipment Breakdown | Customer injury, fire damage, tool theft | Negligent repair claims, employee injury suits, warranty disputes |
Tire & Brake Shops | General Liability, Product Liability, Workers’ Comp, Commercial Auto, BOP | Slip-and-fall accidents, faulty installations, employee injuries | Vehicle damage lawsuits, personal injury from improper install, parts failure claims |
Mobile Mechanics | General Liability, Commercial Auto, Tools & Equipment, Professional Liability | Damage during off-site repairs, driving-related incidents, theft | On-location injury lawsuits, equipment damage, unsatisfactory service claims |
Auto Detailing Services | General Liability, Professional Liability, Inland Marine (for tools), Commercial Auto | Scratches during service, water damage, chemical exposure | Property damage lawsuits, damage to high-end vehicles, breach of service terms |
Auto Glass & Window Tinting | General Liability, Professional Liability, Workers’ Comp, BOP | Improper installation, equipment damage, cuts from glass | Customer injury, vehicle damage lawsuits, installation defect claims |
Towing & Roadside Assistance | Commercial Auto, Garagekeepers Legal Liability, General Liability, Inland Marine, Workers’ Comp | Accidents in transport, vehicle damage in tow, injury lifting cars | Vehicle damage claims, customer injury lawsuits, on-road liability |
Auto Parts Retailers | General Liability, Product Liability, Commercial Property, Cyber Liability (for online orders) | Inventory loss, product defects, shipping issues | Product failure claims, bodily injury from faulty parts, online order disputes |
How to Get the Best Cheap Business Insurance for Your Automotive Company
Here's a step-by-step method for finding the best and cheapest business insurance for your automotive company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you a balanced perspective on your coverage needs and prevent you from being convinced to get excessive coverage.
- 2
Research costs
To get the best deal, research average costs, research average costs for your business profile and determine which providers offer the cheapest rates overall. This will give you a measuring stick for how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
To further narrow your list, research what customers say on online rating sites and forums to get a more comprehensive look at company services. Also, to align with your coverage needs and future ones, research coverage options to ensure you're covered for the right items.
- 4
Compare multiple quotes through different means
The best way to find the lowest rates is to compare multiple quotes for apples-to-apples coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Automotive Business's Liability Risk
Reducing risk is key to managing insurance costs in the automotive industry. We've organized strategies by business type or risk level to help you find the best approach for your needs.
Automotive Business Risk Type | Included Types of Automotive Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | Collision repair, towing services, roadside assistance | Maintain certified technicians, document repairs, follow EPA disposal rules, inspect tow equipment, require pre- and post-service waivers |
Moderately High | Auto repair shops, tire/brake shops, mobile mechanics | Use torque specs and checklists, conduct safety briefings, log customer approvals, secure mobile tools, carry signage for mobile zones |
Moderate | Auto detailing, window tinting, glass replacement | Use non-damaging materials, train staff on high-end finishes, secure customer consent, photograph vehicles before/after work |
Moderately Low | Auto parts retailers, specialty shops | Track inventory with barcodes, label safety information clearly, store parts securely, document vendor sourcing |
Lowest | Part-time mobile mechanics, hobbyist repair sellers | Use digital logs, clarify service limitations, avoid cash-only work, carry basic general liability policy |
Best Insurance for Automotive Business: Bottom Line
NEXT is the best insurer for automotive business insurance, and it also offers the cheapest option overall. We also recommend getting quotes from The Hartford, biBerk and Simply Business. For the best deal, talk to agents, research providers and pricing, and compare multiple quotes side by side.
Automotive Business Insurance: FAQ
Below, we answer common questions about automotive business insurance.
Who offers the best automotive business insurance overall?
NEXT offers the best business insurance for automotive companies with a MoneyGeek score of 96 out of 100 and exceptional customer service. The Hartford is a close second.
Who has the cheapest business insurance for automotive companies?
Here are the cheapest business insurance companies for automotive companies by coverage type:
- Cheapest general liability insurance: NEXT Insurance at $28 per month
- Cheapest workers' comp insurance: Thimble at $50 per month
- Cheapest professional liability insurance: The Hartford at $67 per month
- Cheapest BOP insurance: NEXT Insurance at $40 per month
What business insurance is required for automotive organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for automotive businesses, with requirements varying by state. While not legally mandated, general liability insurance and surety bonds are effectively required by most commercial clients and property leases.
How much does automotive business insurance cost?
Business insurance costs for automotive companies depend on business size, risk exposure, and services offered. Below are the average monthly costs for common policy types:
- General liability: $54 per month
- Workers comp: $58 per month
- Professional liability: $75 per month
- BOP insurance: $79 per month
How We Chose the Best Automotive Business Insurance
We selected the best business insurer for automotive companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
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.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.
- NEXT. "Customer Reviews." Accessed June 16, 2025.