Ways to Reduce Insurance Cost for Your Auto Repair Business
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
Auto repair shops deal with many risk factors, customer vehicles, tools, machinery, employees, fire hazards, and road testing, all of which influence the insurance cost for an auto repair business. While these exposures can make premiums feel high, the good news is that shop owners can take strategic steps to reduce insurance expenses while keeping their business fully protected.
If you’re planning to request an auto service business insurance quote, here are proven ways to secure lower, more competitive rates.
1. Maintain a Clean Claims History
Insurance carriers reward shops with fewer claims. Even small, frequent losses can increase your future premium. Preventing claims through safety protocols, proper documentation, and routine equipment maintenance helps demonstrate lower risk to insurers and often results in better pricing.
If you’ve had claims in the past, consider implementing corrective measures, such as improved training or equipment upgrades, to show insurers that your shop is actively reducing risk.
2. Improve Safety and Training Programs
Auto repair shops are hands‑on environments where injuries and accidents can occur. Carriers look closely at your shop’s safety culture, including:
OSHA‑compliant procedures
Daily cleanliness
Proper equipment handling
Employee safety training
Chemical handling processes
A safer shop reduces Workers’ Compensation and liability risks, which can lead to lower premiums.
3. Secure and Protect Your Shop Property
Your tools, lifts, vehicles, and shop equipment are expensive to replace. Improving security can reduce your property insurance costs. Consider adding:
Security cameras
Alarm systems
Fire suppression systems
Proper indoor overnight vehicle storage
Gated or monitored parking areas
When carriers see that your property is well protected, they often provide better pricing for auto repair business insurance packages.
4. Adjust Deductibles When Appropriate
Many shop owners lower their insurance bill by choosing higher deductibles, especially for property or Garage Keepers coverage. This reduces premiums but requires financial readiness to cover the deductible in the event of a loss. It’s a good strategy for shops with strong cash flow and fewer claims.
5. Regularly Review and Update Your Coverage
Shops change over time, services expand, equipment is added, or operations shift. Reviewing your policy annually ensures you’re not paying for outdated or unnecessary coverage. A specialised insurance agency can help identify areas where you might be over-insured or under-insured.
6. Work With an Agency That Specialises in Auto Repair Shops
Insurance costs vary significantly depending on which companies an agency works with. Many carriers do not insure auto repair shops due to their high‑risk nature. That’s why partnering with a specialist makes a major difference.
Wexford Insurance works with insurance carriers that specifically understand auto repair risks, helping shop owners secure competitive pricing and the right coverage combination for their operations.
👉 Request your auto service business insurance quote from Wexford Insurance and start lowering your insurance costs while keeping your shop fully protected.
