Mid-America Specialty Markets

Industry spotlight

Auto Repair Insurance

Coverage considerations for garage operations, customer vehicles, completed work, towing, employees, property, and equipment.

What makes auto repair insurance different?

Repair shops take custody of customer vehicles and perform work that can lead to later accidents or property damage.

Common operational risks and exposures

Customer vehicles

Vehicles can be damaged while stored, tested, moved, or repaired.

Repair operations

Faulty work or parts can lead to completed-operations allegations.

Shop hazards

Lifts, welding, fluids, tools, and test drives affect property and employee risk.

Insurance coverages commonly considered

The right combination depends on the operation. These coverage guides explain the underlying policies without repeating their full details here.

Important specialized gaps and concerns

  • Garagekeepers and garage liability address different exposures.
  • Pollution, towing, loaner vehicles, and dealer operations require explicit review.
  • Tools, diagnostic equipment, customer parts, and business interruption may need endorsements.

Operational factors that can affect coverage

  • Repair types, annual receipts, bays, and employees
  • Customer vehicle values, overnight storage, and security
  • Towing, road testing, loaners, used-car sales, and claims

What a business owner should compare

  • How operations and locations are described
  • Limits, deductibles, sublimits, and valuation
  • Industry-specific exclusions and endorsements
  • Audit, reporting, and risk-control requirements

A practical next step

Gather current policies, a clear description of operations, property and equipment values, vehicle and employee information, contracts, and recent loss history. Those details help make policy comparisons more meaningful.

This article is for general educational purposes. Coverage availability, terms, limits, and eligibility vary by insurer and state. Coverage can be confirmed only by the issued policy and applicable endorsements.

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