How much is auto repair shop insurance?  

If you search for auto repair shop insurance, you’ll see widely different prices for the “same” insurance. According to MoneyGeek’s 2026 report, individual policies average anywhere from $78 to $192 a month. For a small shop with one to four employees, general liability, commercial auto, commercial property, and workers’ comp for one employee add up to roughly $448 a month. 

Cyber insurance and garagekeepers coverage cost extra. And if you have a larger crew, expect the bill to go up, especially for workers’ comp. Your final cost also depends on your insurance company, where your shop is located, the services you offer, and the types of vehicles you work on.  

Note: These numbers are ballpark estimates, not actual quotes.  

Types of auto repair shop insurance  

General liability covers customer injuries and damage to someone else’s property. For example, if a customer slips on an oily floor in your shop, this coverage can help with costs like hospital bills. It generally doesn’t cover damage to customer vehicles in your care. 

Garagekeepers liability covers customer vehicles while they’re in your care. So, if an employee accidentally dents a customer’s car or the vehicle is vandalized while parked at your shop overnight, this coverage can help. Garagekeepers liability is called storage location insurance in Texas and Virginia, and asking for garagekeepers coverage there gets you on-hook towing instead, so make sure you’re buying the right coverage. Progressive requires you to buy garagekeepers liability as part of a package that also includes on-hook towing and liability insurance. 

Commercial property covers your building and equipment, including lifts and diagnostic tools. It can help pay to repair or replace these items, along with your tools and parts inventory, after covered events like fire, theft, or vandalism. When you set your coverage limits, base them on the current replacement cost of your equipment, not its depreciated value. 

Workers’ compensation helps pay for medical bills and lost wages if an employee gets hurt at work. It can also protect your shop from lawsuits related to workplace injuries. Most states require this coverage once you have employees. Texas lets most private employers opt out, and some states require coverage only once you reach a set number of employees. 

Commercial auto insurance covers vehicles owned by your shop, such as shop trucks or loaner vehicles. If your employees use their own cars or rented vehicles for work, you may also need hired and non-owned auto coverage.  

Cyber insurance can help cover the costs if your shop suffers a data breach, cyberattack, or any other online security incident. This is something worth looking into if you’re planning on using shop management software to store customer payment details, contact information, or vehicle records. Depending on the policy, coverage may help pay for things like notifying affected customers, recovering lost data, and legal fees. 

What does each type of auto repair shop insurance cost?  

MoneyGeek’s numbers come from more than 6 million modeled estimates from 10 major insurance providers. The estimates are based on a small shop with one to four employees.  

Here’s what the averages look like: 

Coverage	Average monthly	Average annual
Commercial property	$78	$937
Workers’ comp (per employee)	$82	$982
Cyber	$89	$1,064
General liability ($1M/$2M limits)	$96	$1,150
Commercial auto	$192	$2,300

Garagekeepers coverage doesn’t have a simple average price. Progressive’s version has a maximum limit of $2,500 per occurrence in most cases and a typical $500 deductible per vehicle. When you get a quote, ask the insurer how much coverage you have per vehicle and per occurrence, what happens if a storm or break-in damages several cars at once, and whether the deductible applies to each vehicle.  

Workers’ comp costs depend on your payroll and the type of work each employee does. MoneyGeek’s state estimates work out to about $46 per employee per month in Indiana, compared with $193 in California. General liability varies by location too, averaging around $61 a month in West Virginia and $166 in California.  

Progressive says insurers consider things such as the type of work you do, how many employees you have, the value of your equipment, and your claims history. So, a mechanic running a full-service garage and storing customer cars overnight has a very different risk profile from a mobile mechanic who works out of a truck.   

The services you offer can also affect your premium. An oil change generally carries less risk than a transmission rebuild. If you work on expensive classic or exotic cars, you can expect insurers to look at that risk differently too.  

How to lower your auto repair shop insurance costs  

Compare quotes before renewal. Get at least three quotes with the same limits and deductibles, or you’re comparing different products.  

Bundle your policies. A business owner’s policy (BOP) combines general liability, commercial property, and business income coverage into one package. Bundling can be cheaper than buying each policy separately.  

Consider raising your deductibles. If your shop has steady revenue, raising your deductible can be a good way to lower your premium. Saving a small amount on your monthly premium won’t help if an accident leaves you with an out-of-pocket bill you can’t afford. 

Final thoughts 

Since auto repair shop insurance costs can vary, don’t treat the averages above as a final price. Instead, use them as a starting point. 

Before you buy, make a list of the coverage your shop actually needs, then get quotes with the same limits and deductibles so you can compare them. It’s also worth reviewing your policies once a year, especially if you hire more employees, add new services, or buy vehicles for the shop. 

Sources  
MoneyGeek: Average Auto Repair Shop Business Insurance Cost (2026 Report)

MoneyGeek: How Much Does Small Business Insurance Cost?

Progressive Commercial: Auto Mechanic Insurance

Progressive Commercial: Garagekeepers Legal Liability Insurance