Garage Insurance 101

Garage InsuranceIf you own an auto repair shop or car dealership, garage insurance can protect your business so that you can focus on providing quality auto body work, mechanical repairs, engine tune-ups, and similar automotive services. Whether you have a standalone mechanic shop or conduct repairs as an additional service for your filling station or car dealership, garage insurance can protect you against liabilities unique to your industry.

At Hawsey Insurance, our knowledgeable agents can discuss your business to determine what you should include in your garage insurance policy. For example, some shops concentrate on brake drums or custom-made parts. If you own this type of business, you will need different insurance coverage than a full auto body shop.

Does Your Business Need Garage Insurance?

If you have a physical location, such as a parking lot, storage area or auto body shop, you probably need garage insurance. Businesses that should consider this type of coverage include the following:

  • Automotive repair shops
  • Body shops
  • Transmission shops
  • Auto dealerships
  • Muffler shops
  • Parking garage
  • Tire and battery repair facilities
  • Tow or impound lots


Of course, all businesses need insurance to protect themselves from universal risks faced by all companies. We have offices in Jackson, Madison, or Southaven, MS, if you would like to discuss the specific needs of your garage-related business.

What Does Garage Insurance Cover?

How can garage insurance protect your business? If you own a garage or repair shop, you keep your customer cars on the business property while you work on them. Therefore, control and custody of large-value assets become your responsibility. Garage insurance can protect you from property damage associated with your customers’ cars. Covered losses may include vandalism, theft, and fire. So, if someone broke in and vandalized your clients’ cars, your garage insurance could help you cover the damage without putting your business in financial jeopardy.

Here is an example. Let’s say you own a towing business, and a customer has left their car in your care. What will you do if something happens to the car? Garage insurance can protect you from thieves, storm damage, and any other events covered in your insurance policy.

How Much Coverage Should You Get?

You need enough garage insurance to cover your business adequately. So, how can you figure this out? The needs of your business determine the amount of garage insurance you need.

Calculate the typical number of cars in your care and control. Now, figure out the average worth of each car. So, if you have 10 cars on the lot and they are worth an average of $20,000 each, you need $200,000 in garage insurance covering property damage. Request a quote now!

Call Hawsey Insurance at (601) 856-7707 to learn more about garage insurance. You can also schedule an appointment at one of our offices in Mississippi. Visit our news section for the most recent news that could impact your automotive business.