How Auto Body Shops Can Lower Their Business Insurance Costs
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Insurance is a significant expense for auto body shops, but paying high premiums doesn’t always mean better protection. With the right strategies, shop owners can lower insurance costs while maintaining adequate coverage.
This guide explains actionable ways auto body shops can reduce insurance premiums and how Wexford Insurance can help you find cost-effective coverage.
1. Implement Strong Safety Programs
Insurers reward shops that reduce risk:
Train employees on vehicle handling, ladder safety, and chemical use
Maintain OSHA-compliant procedures and protective equipment
Use proper storage and organization for tools and vehicles
Fewer accidents lead to fewer claims, which can result in lower premiums.
2. Maintain a Clean Claims History
Insurance costs rise with frequent claims. To keep your claims history clean:
Pay minor damages out-of-pocket when feasible
Address safety issues promptly
Keep detailed documentation of incidents
A clean claims record signals lower risk to insurers.
3. Bundle Policies
Bundling multiple policies with one provider often results in discounts. Auto body shops can combine:
Wexford Insurance specializes in bundled policies for repair shops, helping reduce overall costs.
4. Adjust Coverage Limits and Deductibles Strategically
Avoid over-insuring with unnecessarily high limits
Choose deductibles that balance premium reduction with manageable out-of-pocket costs
This ensures your shop is adequately protected without overpaying.
5. Accurately Classify Employees
Incorrect employee classification can increase workers’ compensation premiums:
Ensure job duties are correctly reported
Update payroll figures regularly
Properly document independent contractors
Accurate classifications help prevent overpayment and compliance issues.
6. Shop Around and Compare Quotes
Work with insurance providers experienced in auto body shops
Compare quotes for coverage, limits, and premiums
Ask about discounts for risk management or multiple policies
Wexford Insurance specializes in auto body shop coverage and can provide fast, tailored quotes for your business.
👉 Get an auto body shop insurance quote from Wexford Insurance today.
