Best Auto Repair Shop Business Insurance

Nationwide ranks as the best business insurance provider for auto repair shops and mechanics with a MoneyGeek score of 4.80 out of 5. You'll pay just $113 monthly ($1,357 annually), the lowest rates in our study, while getting strong financial stability. NEXT Insurance and The Hartford rank second and third and offer excellent coverage options for car repair shops and automotive service centers.

Note: We based all scores on a auto-repair business with two employees across professional liability, general liability, workers' comp and BOP policies.

Nationwide offers the cheapest business insurance for auto repair shops at $113 monthly ($1,357 annually). It also has the lowest rates for general liability insurance and business owner's policies. For workers' compensation, NEXT Insurance is a more affordable option, while The Hartford has the cheapest professional liability coverage rates for mechanics.

Nationwide offers the cheapest general liability insurance for auto repair shops and mechanics at $81 monthly ($966 annually). That's $72 less per month than the industry average of $153, which means your car repair business saves $873 annually.

NEXT Insurance offers the cheapest workers' comp insurance for auto repair shops at $143 monthly ($1,718 annually). That's $9 less per month than the industry average of $152, saving mechanics $110 annually. The Hartford and Thimble comes in second and third, respectively.

The Hartford gives mechanics and car repair shops the cheapest professional liability insurance at $74 monthly ($889 annually). Most auto repair businesses pay $82 monthly for this coverage, so you'll save $8 per month or $100 annually with The Hartford. Vehicle repair shops and auto mechanics looking for alternatives should consider NEXT Insurance and Progressive Commercial, both offering rates below $80.

Nationwide provides the cheapest Business Owners' Policy for mechanics and auto repair shops at $121 monthly ($1,446 annually). Most car repair businesses pay $223 monthly for BOP coverage, so you save $102 per month or $1,229 annually with Nationwide. Coverdash and The Hartford offer the next best rates at $167 monthly and $168 monthly.

Auto repair shop insurance costs vary by coverage type. Here's what you can expect to pay for the four most common policies:

• General Liability: $153 on average per month ranging from $132 to $184 depending on state
• Workers Comp: $152 on average per month ranging from $131 to $176 depending on state
• Professional Liability (E&O): $82 on average per month ranging from $71 to $96 depending on state
• BOP Insurance: $223 on average per month ranging from $190 to $263 depending on state

Auto repair shops and mechanics need workers' compensation (required by law in most states), general liability, and garagekeepers insurance as essential protections for daily operations. Depending on your shop's size and services, you should also consider commercial property, commercial auto, professional liability, business interruption, cyber liability, and pollution liability coverage.

• Workers' Compensation Insurance: Workers' comp is legally required in almost every state when you hire employees. Auto mechanics face constant injury risks from lifts, power tools and heavy machinery. This coverage pays medical expenses and lost wages when your technicians get hurt on the job, protecting you from costly lawsuits and out-of-pocket medical expenses. Most shops carry limits that match their total annual payroll.
• General Liability Insurance: General liability protects your shop when customers slip on oil, trip over equipment or get injured on your property. It covers medical bills, legal defense and settlements from customer injuries or property damage you cause. Landlords often require this before leasing space. Most car repair shops carry $1 million per occurrence and $2 million aggregate limits for adequate protection.
• Garagekeepers Insurance: Garagekeepers covers damage to customer vehicles while you're storing, servicing or test-driving them, whether parked in your lot or up on a lift. If a car gets stolen, vandalized or damaged by fire at your shop, this coverage pays for repairs. Most mechanics carry $50,000 to $300,000 limits with $500 to $1,000 deductibles per vehicle.
• Commercial Property Insurance: Commercial property covers your tools, lifts, diagnostic equipment and inventory when fire, storms, theft or vandalism damage your shop. A burst pipe can ruin thousands of dollars in specialized tools overnight, and this coverage helps you replace expensive equipment quickly so you can get back to business. Most auto repair shops carry $50,000 to $200,000 limits based on total equipment value.
• Commercial Auto Insurance: Commercial auto covers you when test-driving customer cars, delivering vehicles or using shop trucks for parts runs. Personal auto policies exclude business use and won't pay claims. This coverage protects you from liability if you damage another vehicle or injure someone while driving for work. Most shops carry $500,000 to $1 million per accident limits for solid protection.
• Professional Liability Insurance (E&O): Professional liability protects you when customers claim faulty repairs, incomplete work or missed deadlines caused financial harm. If a customer alleges your brake installation failed or repairs took longer than promised, it covers legal defense and settlements. Vehicle repair shops typically carry $500,000 to $1 million coverage to defend against allegations of negligence, errors or workmanship disputes.
• Business Interruption Insurance: Business interruption coverage, typically included in a Business Owner's Policy, replaces lost income when your shop closes temporarily due to fire, storm or covered property damage. It pays ongoing expenses like rent, utilities and payroll while you rebuild or repair. Most mechanics carry coverage equal to three to six months of operating expenses to stay financially stable during closures.
• Cyber Liability Insurance: Cyber liability protects your business when hackers breach your payment systems or steal customer data. If you process credit cards or store customer information digitally, this coverage pays for data breach notifications, credit monitoring services, legal fees and regulatory fines. Most auto repair shops carry $100,000 to $500,000 limits to cover costs from cyberattacks and data breaches.
• Pollution Liability Insurance: Pollution liability covers cleanup costs and damages when oil, fuel, solvents or other automotive fluids contaminate soil or water. If a storage tank leaks or chemicals spill, this pays for environmental cleanup and third-party claims. Auto repair shops handling hazardous materials typically carry $500,000 to $1 million limits to protect against expensive environmental liability claims.

Our guide show you how to get business insurance for your auto repair shop and find the best rates for mechanics.

Auto repair shops and mechanics need several types of business insurance, including workers' compensation, general liability, garagekeepers and commercial property coverage. Nationwide ranks as the best business insurance provider for the industry with a MoneyGeek score of 4.80 and offers the cheapest rates at $113 monthly.

We answer frequently asked questions about Auto Repair business insurance:

We selected the best business insurer for auto-repair 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 the company 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 providers 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 companies are 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