What Is Garage Keepers Insurance

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What Protection Does Garage Keepers Insurance Offer

Garagekeepers Liability Insurance: The Basics

Altogether garage keepers insurance can provide three types of protection to an auto shop.

  • Legal liability Legal liability is one of the most expensive types of claims that this policy will protect against. This coverage protects the garage owner from damages caused by employees negligence.
  • Direct Primary This coverage protects your customers property if it is damaged by extreme weather or stolen. This coverage will apply regardless of who is at fault for the damage.
  • Direct Excess This is similar to direct primary coverage in that it is activated regardless of fault. However, rather than covering the total amount of the theft or damage, it will only cover the amount that the owners original policy does not cover.

Essential Things To Know Before You Sign Up

Garage liability insurance does not cover the policyholders tools, building, personal, or business property. It also does not cover vandalism, stolen vehicles, or damage caused by events such as hail. The policy does not cover accidents or damage to the customers cars while serviced on-site. Furthermore, all primary and additional policy items will have a listed maximum liability coverage amount and may have aggregate limits by claim or by year.

Garage Liability Is Not Garage

Garage-keepers insurance is a separate policy that covers the property damage to a client’s car while it is in the care of the policyholder. This can include damage during road test drives and while storing the vehicle during non-working hours. The keeper’s insurance will cover vandalism and theft of a customer’s car. Businesses with multiple locations require policies for each site.

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Typical Garage Keepers Insurance Exclusions

  • Contractual obligations
  • Defective parts or faulty work
  • Loss of sound reproducing equipment, unless it is permanently installed
  • Loss of CDs and tapes
  • Loss of sound receiving equipment , unless it is installed in the dash or console
  • Radar detection equipment

To learn more about Garage Keepers Insurance for your business speak to an ALIGNED Insurance Advocate or connect with us today at www.alignedinsurance.com

Issues That Each Policy Covers

Garage Keepers Liability

The biggest difference between garage liability insurance and garage keepers liability insurance is what these two plans help with. Garage liability insurance protects your clients from liability issues related to their business procedures. For example, if an employee installs the wrong part into a customers car or deviates from a contract, garage liability insurance can prevent these errors from ruining your clients budget.

What is garage keepers liability insurance? While this policy also helps with garage-associated costs, it protects your clients customers property, not your clients businesses. For example, if someone breaks into your clients garage overnight and steals a car, his or her garage keepers liability insurance helps with legal costs or car replacement bills. This kind of policy pairs well with excess & surplus insurance for maximum coverage, and it works similarly to collision or comprehensive policies for standard car insurance.

Explain to your clients that there are three subtypes of garage keepers liability insurance. The first is direct excess insurance, which helps with repairs if a customer has already exceeded his or her deductible. Direct primary policies help replace or repair customers cars during break-ins and severe weather events, such as tornadoes and hurricanes. Finally, legal liability steps in if your clients employees further damage a vehicle in their care, necessitating repairs for which the client cannot be charged.

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What Is Excluded From Garage Keepers Coverage

There are a few things that are not covered by garagekeepers coverage:

  • Damage due to improper or faulty workmanship of the manufacturer
  • Warranties that dont have the proper coverages
  • Items inside the car that may have been damaged

Coverage for a customers personal items in the car can be written into your overall policy, which you should consider as a courtesy to your customer. It must be noted that exclusions are usually anything that are not permanently installed in the car.

How Much Does Garage Keepers Insurance Cost

On average, garage keepers insurance costs around $1,000 to $1,300 a year.

The cost depends on many factors, including:

  • The type of work your business does
  • Coverage needs and limits
  • Types and value of vehicles covered

Its essential to get several quotes for garage keepers and other related insurance online or through an insurance agent and compare them to ensure youre getting the coverage you need at a fair price.

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Two Types Of Garage Keepers Liability Coverage Are Available:

  • Direct Primary Coverage Coverage for a business, even if the loss is not the businesss fault nor are they legally liable.
  • Excess Coverage Additional coverage over the limit of coverage that the vehicle owner/customer has from his/her own insurance company. This will automatically pay if the customer does not have Automobile Insurance.

Difference Between Garage Liability And Garage

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While they may sound similar, they can be very different, making it critical to understand what is covered and what is at risk. To put it simply, the difference in coverage is the distinction between liability insurance and physical damage insurance. Its essential to understand the distinction between garage liability insurance and garage keepers coverage. The garage keepers coverage provides coverage for the customers vehicles while the shop owner is servicing them. This means that if any damage to the vehicle occurs on-site, the general liability will compensate for the loss.

Do you have multiple garages in the same or different cities? Then you will need policies depending on the number of shops you have. The policy also includes coverage for theft and destruction caused by a dishonest employee.

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Why Garage Keepers Insurance Is Important

Garage keepers insurance falls under a garage policy held by auto dealers, body shops, and repair shops. It provides them with liability protection in the event that a customer’s car is damaged while in the garage’s possession for repairs, bodywork, or storage.

Garage keepers insurance falls under a garage policy held by auto dealers, body shops, and repair shops. It provides them with liability protection in the event that a customer’s car is damaged while in the garage’s possession for repairs, bodywork, or storage.

Get A Free Garagekeepers Liability Insurance Quote

You want every vehicle in the care of your business to be covered in case the unthinkable happens. To get a free quote for garagekeepers coverage for your shop, complete the form at the top of the page. Or give us a call at to speak directly with an agent. We’ll help connect you with the right garagekeepers insurance for your business!

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Speak To Experienced Specialty Insurance Brokers

The cost of a garage liability insurance policy can greatly range based on a number of factors, such as the annual revenue of your business, the limits that you choose, the coverage options you select, and the deductible you opt for. For more information about garage liability insurance or to acquire a policy for your business, speak to the experienced specialty insurance brokers at JMG Insurance Corp today.

Whats Excluded From A Garage Keepers Liability Insurance Policy

Garage Keepers Liability

While garage keepers liability insurance covers the main components of a customers vehicle, such as the body and the engine, it does not include personal property within the vehicle. These exclusions include contents in the trunk or glove compartment, stereo equipment and radios, phones, and radar detectors.

You might be able to add personal property coverage to your garage keepers policy, as well, but keep in mind this will result in a higher premium.

Garage keepers insurance also doesnt cover claims based on a complaint of faulty repair work or defective parts. For example, if a customer accuses your business of a poor repair job, this would not be covered by your garage keepers insurance. In this event, you would need professional liability insurance.

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Garage Keepers Insurance Limits

  • Customers will often determine Garage Keepers Insurance coverage limits by considering the average value of vehicles in your care multiplied by the average number of vehicles in your care at any given time.
  • You must select a Garage Keepers Insurance per-vehicle deductible that is to be paid by you in case of a damaging incident. Then, the insurer covers the remaining amount, up to your Garage Keepers Insurance limits.

Garagekeepers Insurance Policy Information

Garagekeepers Insurance. Garage keepers coverage is part of the auto dealers coverage form. It may also be added to a garage, repair shop, or parking lot in whose custody customers leave their cars as a bailee and, as such, may be held liable for loss of or damage to the property bailed to it.

Numerous enterprises not in the automobile business handle automobiles of customers as part of their regular services.

Motels, apartment buildings, office buildings, mercantile establishments, and institutional entities that maintain garages or public parking facilities, or park cars for their clients face potential liability for loss of or damage to vehicles entrusted to their care. Garagekeepers insurance can be written to cover this exposure.

Garagekeepers insurance is designed to protect auto service, towing and car parking/storage businesses with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked Garagekeepers Insurance insurance questions:

Garagekeepers Insurance protects auto service businesses for losses to a customer’s auto left in their care and supervision.

A garage keepers policy protects auto service businesses from damage to a customer’s vehicle including fire, theft, weather, and vandalism.

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What Does Garage Keepers Insurance Not Cover

Garage keepers insurance covers customers vehicles while they are in your care, but it typically excludes property contained in the vehicle, such as:

  • Factory stereo equipment
  • Items stored in a trunk or glove box

It also does not cover damage caused by poor or faulty quality, worn-out parts, or a lack of warranty.

What Other Coverages Do Tow And Auto Repair Businesses Need

Garagekeepers Coverage: Garage Insurance Series

Some coverages they often purchase include:

  • Garage liability coverage protects you if a customer or other non-employee is injured on your business property or if you or someone who works for you damages someone elses property while conducting business. Learn more at the best garage liability insurance companies.
  • Commercial auto covers vehicles used for business purposes, including tow and pickup trucks.
  • On-hook towing covers damage that happens to cars when you tow them.
  • Business income insurance helps recover some of your lost income if you cant operate your auto repair shop or towing operation for reasons covered by your insurance.
  • Workers compensation provides benefits to employees injured or who become ill because of work-related reasons. Your state will likely require you to get this coverage if you have employees. Learn more at the best workers comp insurance companies and the cheapest workers comp insurance companies.

You may be required to purchase liability insurance and on-hook towing protection to obtain garage keepers legal liability coverage. Learn more at the best tow truck insurance companies andthe best auto repair shop insurance companies.

There are many more types of protection your business may need. An experienced business insurance agent or company representative can advise you on what coverage is right for you. Its also likely that an online quoting request system will help you identify the coverages your business should apply for.

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What Types Of Businesses Should Have Garage Keepers Liability Coverage

Service stations, auto dealers, and garage operations should purchase this coverage, as well as auto repair shops and car washes and detailers.

Other businesses that should consider buying garage keepers liability coverage include:

  • Electronics installers, such as stereo and speaker installation
  • Oil change services

Garagekeepers Liability Insurance: The Basics

If you run a towing operation, service station, or autobody repair shop, then youve most likely come across Garagekeepers Liability Insurance.

But do you know exactly what Garagekeepers Liability Insurance covers and why you might need it?

In this article we explain:

  • What Garagekeepers Legal Liability Insurance is,
  • When it applies,
  • What businesses need Garagekeepers coverage, and,
  • Why you should purchasing this insurance coverage to protect your business.

Lets begin

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Know The Difference Between Garage Keepers And Garage Liability Insurance

Most repair shops, dealerships, and storage facilities carry garage liability insurance to protect their business from liability for bodily injury or property damage if an accident occurs during business operations. It functions as a hybrid of general liability and business auto insurance, covering medical and repairs costs.

This type of policy includes the following coverages:

  • Injuries to uninsured third parties
  • Property damage caused by business equipment
  • Products manufactured or sold by the shop that causes damage to another persons vehicle.

It is important to note that this policy only covers third-party claims and not the vehicle itself. Garage keepers insurance covers the cars under your care in the event of an accident, regardless of who is at fault.

Am I Required To Get Garage Keepers Insurance

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Garage keepers insurance is optional coverage. Its designed for business owners who offer towing or repair services. It protects your customers vehicles when you keep them at an insured location for storage while performing service.

Interesting fact: In Virginia and Texas, garage keepers legal liability coverage is called storage location insurance. In these two states only, on-hook towing insurance is then called garage keepers legal liability coverage.

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Garage Keepers Liability Vs Garage Liability: Difference

For automobile repair stations, car body shops, towing companies, and small business owners dealing with vehicle services, there seems to be a lot of confusion when it comes to Garage Keepers Liability and Garage Liability insurance policies.

Do they offer the same kind of protection? Are they similar regarding coverage? What Garage Liability insurance do I need for my business?

While both terms are often used interchangeably by many people, including unaware brokers in the trade, there is a considerable difference between Garage Keepers Liability and Garage Liability:

What Does Garagekeepers Insurance Cover

Garagekeepers Insurance provides coverage for losses to a customers auto or auto equipment left in your businesss care for service, repair, storage, or safekeeping. Coverage applies to motor vehicles, trailers, or semitrailers.

Garagekeepers Insurance, similar to auto physical damage coverage, offers three coverage options:

  • Collision coverage pays for physical and mechanical damage to a customers vehicle if it hits or is hit by an object or another vehicle or is overturned.
  • Comprehensive coverage provides coverage for all causes of loss not covered by collision coverage.
  • Specified causes of loss coverage is a more limited form of comprehensive coverage, providing coverage only for the causes of loss defined in the contract. Specified cause of loss typically includes fire, lightning, explosion, theft, mischief, and vandalism.


  • Someone breaks into your car service shop and steals car parts from a number of customer vehicles. Your Garagekeepers Insurance would cover the loss.

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What Is Garage Liability Insurance

Garage liability insurance is specialty insurance targeted to the automotive industry. Automobile dealerships, parking lots or parking garages operators, tow-truck operators, service stations, and customization and repair shops will add garage liability insurance to their business liability coverage. The policy protects property damage and bodily injury resulting from operations.

This insurance is not the same thing as garage-keepers coverage.

What Does Garage Keepers Insurance Cover

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All automotive businesses, including auto body shops, service stations, towing companies and parking garages, risk inherent liabilities when providing service for customers vehicles.

The simple act of storing or servicing these automobiles represents a liability. Fortunately, such businesses can obtain protection against these risks by acquiring garage keepers insurance. Here is a close look at this type of insurance policy and what it covers.

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What Businesses Need Garagekeepers Insurance

For companies that work servicing vehicles, both garage liability and garagekeepers liability are applicable policies. To avoid gaps in coverage, you should recommend that your clients choose both plans. The following businesses benefit from this strategy:

  • Auto body or repair shops
  • Oil change companies

Who Should Get It

After learning more about it, you may wonder if you need garage insurance. If you own a business that deals with cars, having such a policy can be highly beneficial. This includes businesses such as emissions testing stations, valet services, and those that repair or customize cars. In a nutshell, garage liability insurance protects any business that sells, transports, or repairs cars.

In some cases, landlords who want to protect their assets from a particular business activity may require garage liability insurance.Having the correct liability policies in place can also give you peace of mind. Keep in mind that garage insurance does not only cover standard vehicles such as cars and trucks.

Individual or fleets of motorcycles, trailers, and tractor-trailers can also be covered. While garage liability insurance is not required in most states, having it could save your business from financial ruin.

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Is Workmans Comp Required In Florida For Auto Repair Shops With 2 Employees

In the State of Florida in accordance with the Statutes businesses do not have to have Workers Compensation until it has more than 3 employees. This is true for all industries except for construction.

You should take into consideration that although you are not require to have Workers Compensation, your business is still responsible for any accident or employment disease / illness that an employee may incur.

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