How Garage Keepers Insurance Protects Auto Repair Shop Owners
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 3 min read
Every auto repair shop handles one of the most valuable assets their customers own, their vehicles. Whether you operate a full‑service repair garage, tire shop, brake shop, engine rebuild center, transmission facility, or diagnostic shop, customer vehicles are constantly in your care. That’s why Garage Keepers Insurance is one of the most important elements of auto repair business insurance.
Garage Keepers Insurance protects your shop when a customer's vehicle is damaged while in your possession. Without it, a single unexpected incident could force your business to pay thousands out of pocket. Below is a clear breakdown of how this essential coverage works and why every repair shop owner should carry it before requesting an auto service business insurance quote.
What Is Garage Keepers Insurance?
Garage Keepers Insurance protects customer vehicles while they are:
Parked on your lot
Stored inside your shop
Being test‑driven
Waiting for parts or pickup
This coverage applies when vehicles are in your care, custody, or control, meaning whenever a customer leaves their car with you, even for a short service appointment.
What Garage Keepers Insurance Covers
Garage Keepers is designed to respond to the most common exposures auto shops face:
1. Fire Damage
If a fire breaks out in your shop and destroys customer vehicles, Garage Keepers covers the losses.
2. Theft or Vandalism
Many auto repair shops store vehicles outdoors. If vehicles are stolen, broken into, or vandalised, this coverage pays for repairs or replacement.
3. Weather-Related Damage
Hailstorms, wind damage, falling objects, and other natural events are common claim sources.
4. Collision Damage While Moving Vehicles
If a technician accidentally backs a car into another vehicle, wall, or tool bench, Garage Keepers covers the damage.
5. Damage During Test Drives
If an accident occurs during a road test, Garage Keepers responds, even if your shop’s Commercial Auto policy doesn’t.
Types of Garage Keepers Coverage
Most insurance carriers offer three options:
Legal Liability – Covers damage if your shop is legally responsible (most common and affordable).
Direct Primary – Covers damage regardless of fault (best for high‑value customer vehicles or high‑traffic shops).
Direct Excess – Covers damage after the customer's insurance responds.
The right option depends on your shop’s risk level, location, and customer volume.
Why Every Auto Repair Shop Needs Garage Keepers
Even if you already carry General Liability or Garage Liability, neither policy covers damage to customers’ vehicles. Without Garage Keepers, a single incident, such as a break‑in, fire, or collision, could cost your business tens of thousands of dollars.
Insurance carriers often require Garage Keepers for shops performing:
Engine repair
Transmission repair
Diagnostics
Brakes & suspension work
Electrical work
Welding or fabrication
Any shop that stores vehicles should consider this coverage essential.
Get the Right Garage Keepers Coverage for Your Auto Repair Shop
Not all insurance companies offer Garage Keepers, and pricing varies based on shop security, location, vehicle count, and claim history. Wexford Insurance works with top carriers that specialise in auto repair businesses, helping shop owners secure the right Garage Keepers limits, deductibles, and coverage form.
👉 Request your auto service business insurance quote from Wexford Insurance and make sure your customers’ vehicles, and your business, are fully protected.
