What Is Garage Liability Insurance?
Garage liability insurance is a specialized commercial liability policy designed specifically for businesses that sell, service, repair, store, or otherwise work with motor vehicles. It is the automotive industry's equivalent of general liability insurance — but with broader coverage tailored to the unique risks of garage operations.
A standard general liability policy is designed for typical business risks and explicitly excludes many of the exposures that automotive businesses face daily. Garage liability fills those gaps, providing protection for bodily injury and property damage claims that arise from your garage operations, including your premises, your employees' actions, and the products and services you provide.
"Any business that maintains, repairs, sells, or stores vehicles in an area where the public is present should carry garage liability insurance."
What Garage Liability Covers
What Garage Liability Does NOT Cover
Who Needs Garage Liability Insurance?
If your business involves vehicles in any capacity — selling, servicing, storing, towing, or repairing — you need garage liability insurance. This includes:
- New and used car dealerships
- Auto repair shops and mechanics
- Auto body shops and collision centers
- Tow truck and wrecker companies
- Oil change, muffler, and tire shops
- RV, motorcycle, boat, and specialty vehicle dealers
- Impound lots and tow yards
- Parking garages and vehicle storage facilities
How Much Does Garage Liability Insurance Cost?
Garage liability insurance costs vary based on several factors:
- Type of business and services offered
- Annual revenue and number of employees
- Value of vehicles serviced or sold
- Claims history
- Coverage limits and deductibles
- Location and state requirements
Small repair shops typically pay $1,300–$2,500 per year for garage liability. Dealerships with inventory and higher limits will pay more. As an independent agency, we shop multiple carriers to find you the best rate for your specific situation.