Nationwide earned our top spot for the best small business insurer for auto repair companies because of its affordability and customer service. However, we recommend comparing quotes from our other top picks, including NEXT, The Hartford and Coverdash.
Best Auto Repair Business Insurance
Updated: July 14, 2025
Advertising & Editorial Disclosure
Key Takeaways
Nationwide is the best business insurance company for auto repair firms because it offers the greatest balance of affordability and customer service.
The cheapest overall commercial insurance provider for auto repair businesses is Nationwide, with low monthly rates for various coverage types.
To shop for business insurance for your auto repair business, assess the risks in your industry, consult agents and other similar organizations and compare multiple options.
Best Business Insurance for Auto Repair Companies
| Nationwide | 95 | 98 | 91 |
| NEXT Insurance | 94 | 93 | 94 |
| The Hartford | 94 | 95 | 91 |
| Coverdash | 92 | 95 | 83 |
| Progressive Commercial | 91 | 90 | 81 |
| Simply Business | 90 | 90 | 83 |
| Chubb | 88 | 86 | 87 |
| Hiscox | 87 | 88 | 87 |
| Thimble | 86 | 88 | 81 |
| biBERK | 85 | 80 | 91 |
*All scores were based on an auto-repair business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. Nationwide
pros
Lowest BOP and general liability rates
High customer service score
Strong financial stability
cons
Online quoting takes longer than newer platforms
COMPANY HIGHLIGHTS
Nationwide ranks first for auto repair shops thanks to its unbeatable pricing on general liability and BOP policies. It also offers strong customer service and dependable claims support, making it a go-to for busy garage owners.
Whether you're a solo mechanic or manage a high-volume repair facility, Nationwide's affordability and brand trust make it a solid long-term choice. While it’s not the fastest digital option, its agent network and reliability give it an edge in overall value.
2. The Hartford
pros
Cheapest professional liability coverage
A+ rating from AM Best
Excellent claims reputation
cons
BOP pricing higher than competitors
COMPANY HIGHLIGHTS
The Hartford works well for shops that offer diagnostics, inspections, or specialized services where liability risk is higher. It provides the lowest rates for professional liability insurance and remains competitively priced on general liability and workers’ comp.
Backed by an A+ AM Best rating, The Hartford works well for established garages that need protection from both customer claims and employee risks. While not the cheapest across the board, its service quality and financial strength work well for most shops.
3. NEXT
pros
Highly rated by customers
Smooth online quoting and policy access
Strong pricing for professional liability
cons
Limited agent support for in-person needs
COMPANY HIGHLIGHTS
NEXT offers a digital-first approach for auto repair shops that want fast, easy coverage without paperwork. It performs well in professional liability and BOP pricing, and is especially convenient for smaller operations or mobile mechanics.
With a 4.7-star review score, it’s popular among owners who manage their own books and prefer automation. Just note: if you prefer agent-backed service, you might want to explore a hybrid provider.
Cheapest Business Insurance for Auto Repair Firms
Based on our study of business insurance pricing, Nationwide offers the cheapest overall commercial insurance for auto repair companies across most policy types. However, this applies only to auto repair 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 Auto Repair Companies
With an average monthly rate of $81, Nationwide offers the lowest-cost general liability insurance for auto repair companies. Even so, consider getting quotes from the next-most-affordable insurers: Coverdash and NEXT.
| Nationwide | $81 | $968 |
| Coverdash | $116 | $1,387 |
| NEXT Insurance | $129 | $1,551 |
| The Hartford | $130 | $1,554 |
| Simply Business | $150 | $1,803 |
| Progressive Commercial | $156 | $1,869 |
| Thimble | $166 | $1,995 |
| Chubb | $170 | $2,045 |
| Hiscox | $170 | $2,045 |
| biBERK | $276 | $3,316 |
Cheapest Workers' Comp Insurance for Auto Repair Companies
For auto repair businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $65 per month or $781 yearly.
However, you may find more affordable rates with Progressive Commercial, Simply Business, Hiscox and Coverdash.
| Thimble | $65 | $781 |
| Progressive Commercial | $70 | $842 |
| Simply Business | $72 | $870 |
| Hiscox | $73 | $873 |
| Coverdash | $74 | $893 |
| The Hartford | $74 | $885 |
| NEXT Insurance | $76 | $910 |
| biBERK | $77 | $920 |
| Nationwide | $82 | $980 |
| Chubb | $88 | $1,052 |
Cheapest Professional Liability Insurance for Auto Repair Companies
The Hartford offers the most affordable professional liability insurance options for auto repair companies, with low average monthly rates of $74. You may also want to compare prices from other low-cost providers like NEXT, Thimble and Progressive Commercial.
| The Hartford | $74 | $889 |
| NEXT Insurance | $77 | $925 |
| Progressive Commercial | $79 | $947 |
| Thimble | $79 | $951 |
| Hiscox | $81 | $977 |
| Simply Business | $82 | $980 |
| Coverdash | $83 | $995 |
| biBERK | $86 | $1,028 |
| Nationwide | $89 | $1,068 |
| Chubb | $96 | $1,150 |
Cheapest BOP Insurance for Auto Repair Companies
Nationwide provides the most affordable business owner's policy (BOP) coverage for auto repair companies, with an average yearly cost of $1,449 for bundled general liability and property protection. That's a savings of roughly $531 annually compared to The Hartford, the second most affordable option.
| Nationwide | $121 | $1,449 |
| The Hartford | $165 | $1,980 |
| Coverdash | $167 | $2,007 |
| NEXT Insurance | $187 | $2,246 |
| Simply Business | $225 | $2,703 |
| Progressive Commercial | $233 | $2,792 |
| Hiscox | $254 | $3,051 |
| Thimble | $255 | $3,063 |
| Chubb | $258 | $3,100 |
| biBERK | $359 | $4,305 |
What Type of Coverage Do You Need for a Auto Repair Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses with vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance before starting work. You might also need a surety bond in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED AUTO REPAIR BUSINESS COVERAGE
Auto repair companies should carry general liability insurance because it covers common risks like bodily injury, property damage and legal defense costs. Professional liability insurance also helps businesses that work under client contracts or provide specialized services. It's particularly helpful for auto repair businesses with commercial contracts or high-risk jobs, like engine rebuilds, transmission work or custom modifications.
How to Get the Best Cheap Business Insurance for Your Auto Repair Company
Here's a step-by-step method for finding the best and cheapest business insurance for your auto-repair company.
- 1
Decide on coverage needs before buying
Think about what could go wrong in your auto repair business, 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
Research average costs for your business profile and find which providers offer the cheapest rates overall. This helps you see how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
Research what customers say on online rating sites and forums for a better look at company services. Also, research coverage options to make sure you're covered for what you need now and as your business grows.
- 4
Compare multiple quotes through different means
The best way to find a good deal is to compare multiple quotes for the same 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 Auto Repair Business's Liability Risk
Reducing liability risks helps auto repair businesses manage insurance costs effectively. We've organized risk mitigation strategies by business type and risk level to help you find the best approach for your needs.
Auto Repair Risk Type | Included Types of Auto Repair Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | Full-service shops, transmission & engine repair, body shops with painting | Require lift safety and OSHA training, maintain MSDS for all chemicals, install fire suppression systems, log repair diagnostics and quality checks |
Moderately High | Tire shops, brake specialty garages, mobile mechanics | Use torque spec checks and double-verification, store all tools securely, maintain DOT-compliant vehicles, take before/after photos of all jobs |
Moderate | Mobile-only mechanics or low-volume specialty shops | Use digital work order apps, confirm all customer complaints in writing, limit services to licensed skill sets, avoid roadside repairs when possible |
Moderately Low | Solo or small-scale repair operators | Keep updated training on diagnostic tools, use disclaimers for older vehicles, maintain clean and well-lit spaces, offer limited warranties only |
Lowest | Diagnostic-only garages or inspection stations | Avoid test drives unless insured, verify vehicle ID/mileage, log all findings with time stamps, clarify scope of diagnostic service up front |
Best Insurance for Auto Repair Business: Bottom Line
Nationwide is the best insurer for auto repair business insurance, offering both the top overall rating and the most affordable option. We also recommend getting quotes from NEXT and The Hartford. To find the best deal, talk to agents, research providers and pricing, and compare multiple quotes side by side.
Auto Repair Business Insurance: FAQ
Below, we answer common questions about business insurance for auto repair shops.
Who offers the best auto repair business insurance overall?
Nationwide is the top provider for auto repair business insurance, with an impressive MoneyGeek score of 95 out of 100, excelling in customer service. NEXT Insurance follows closely as a strong contender.
Who has the cheapest business insurance for auto repair companies?
Here are the cheapest business insurance companies for auto repair shops by coverage type:
- Cheapest general liability insurance: Nationwide at $81 per month
- Cheapest workers' comp insurance: Thimble at $65 per month
- Cheapest professional liability insurance: The Hartford at $74 per month
- Cheapest BOP insurance: Nationwide at $121 per month
What business insurance is required for auto repair organizations?
You need workers' compensation insurance if you have employees and commercial auto insurance if you own business vehicles, with requirements varying by state. While not legally mandated, most commercial clients and property leases require general liability insurance and surety bonds.
How much does auto repair business insurance cost?
Business insurance costs for auto repair shops vary based on shop size, employee count and equipment value. Below we've broken down average monthly costs for commonly needed coverage types:
- General liability: $144 per month
- Workers comp: $75 per month
- Professional liability: $83 per month
- BOP insurance: $222 per month
How We Chose the Best 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 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.