6 things to know about garagekeepers insurance if you have an auto shop


As the owner of an auto repair shop, it’s really important to have the right coverage to protect your business. One of the insurance coverages that’s really important is garagekeepers insurance. Now, you might be wondering how garagekeepers coverage can protect your shop. We’ll explain how garagekeepers insurance works and tell you six things you need to know about it.

6 things to know about garagekeepers insurance.

1. Garagekeepers protects your customers’ cars.

If you’ve got customers’ cars in your care, custody, and control, garagekeepers can protect them. (Basically, it’s meant for businesses like auto dealers, service stations, places with valet parking, and so on.) This coverage can be a really important one. Garagekeepers can cover losses like fire, theft, vandalism, explosion, and lightning. So, that’s where garagekeepers insurance can be extremely helpful.

2. There are different types of garagekeepers insurance.

For a business owner, it’s so important to know what is and isn’t covered by your insurance. That way you’re prepared and you know what your insurance will do and how it works. There are a few different types of garagekeepers insurance to be aware of:

Direct primary: coverage for the business even if the loss is not the business’s fault, even if they’re not legally liable.

Excess coverage: this is extra coverage over the limit of coverage that the vehicle owner has for their own coverage.

At any rate, it’s a good idea to go over different garagekeepers insurance options for your business and see what is best for your particular auto shop.

3. You need to choose your limits of coverage carefully.

When you’re getting garagekeepers for your auto shop, it’s crucial to have the right level of insurance – namely, enough insurance. That means choosing the proper limit of coverage. To get a bit of a ballpark for how much coverage you need, you can do a little bit of math: you can multiply the number of cars in your care (on average) by the average value of these vehicles. For example, if you have seven cars on average and they’ve got an average value of $20,000, you would need to get at least $140,000 of garagekeepers coverage. Just a handy little trick to keep in mind.

4. You’ll probably have a per-vehicle deductible.

Another thing to know about garagekeepers is that it will likely come with a per-vehicle deductible. The deductible is the amount you agree to pay if you have a claim – the insurance company can cover the rest of to the policy’s limit. It’s one of those things to think about when you’re getting garagekeepers insurance for an auto shop. (Also note that you may have two numbers to look at – the deductible and then the max deductible. So you might have $500 as the per-vehicle deductible with $2,500 as the maximum deductible.) Keep in mind that if you choose a higher deductible, you may see lower premiums.

5. There are exclusions to garagekeepers insurance.

Now, not everything would be covered by garagekeepers insurance. There are exclusions to the coverage and it’s important to understand those exclusions. Here are a few excluded losses to be aware of:

  • Contractual obligations
  • Theft on part of the insured
  • Defective parts
  • Faulty work
  • Loss to sound-reproducing equipment (unless it’s permanently installed)
  • Loss to sound-receiving equipment (i.e. mobile radios and phones) unless it’s installed to the car’s dash or console
  • Radar detection equipment

Anyways, like we mentioned, it’s really important to read through the policy to make sure you know what is and isn’t covered. You can always ask questions and get clarification on things you need clarification on.

6. You can shop to get good rates on your auto shop insurance.

By getting multiple quotes, you can compare rates and insurance options. It’s not a bad idea to look at different choices. Our team can help you with your coverage and help you get auto repair shop insurance quotes. Get started with your quotes by filling out our online form, giving us a call, or messaging us. We understand the risks you face and can help you find the garagekeepers solution that’s right for you.

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