How Much Does Garage Keepers’ Insurance Cost? (2023 Rates)

Thang Truong
Thang Truong
Updated on:

Garage keepers’ insurance is must-have coverage for any company that takes custody of a customer’s car. Vehicle theft in the US has been on the increase lately. Some studies also show that even though about 20% of these vehicles are sometimes returned, some are returned with damages that cost 1,400 dollars on average.

Depending on your business, an automobile may be stored or parked for a longer period than it is being serviced. Moreover, automobiles are frequently less strictly supervised during these stages and may be more dangerous. Damage to or theft of a customer’s automobile while in your custody may ruin your image and be exceedingly costly. 

This insurance ensures the safety of your client’s property and protects your company in the event of a lawsuit. This article will show you the cost of this insurance policy and some other important information regarding it. 

How much does garage keepers’ insurance cost?

Annual premiums for garage keepers’ insurance coverage range between $1,000 and $1,300 on average. Some garage business can spend as little as $800 per year, while those that want supplementary coverage may pay as much as $2,000 per year. Usually, the cost varies depending on the business and the insurer.

This is just the average. You will get different quotes and rates. The only way to make sure you get the cheapest price for your policy is to shop with a few companies or with a broker like Simply Business, CoverWallet, or to compare several quotes to find the cheapest one for your business.

What factors affect garage keepers’ insurance costs?

The amount you pay for your garage keeper’s insurance premiums usually depends on many factors that border around the safety and risk associated with your business. To determine how much you will pay, insurance companies might be interested in the following factors:

The location of the company

To start your quote, most insurers will want to know the state where you do business. This is important as some insurance companies do not cover every state. Also, states with a high incidence of accidents, natural disasters and crime will have to pay higher than businesses in other states. 

Also, the insurer will want to know the specific location of your business in the state. You will likely pay more if your business is close to a major highway and has high crime levels. 

Size of your business

To calculate your premium, insurers might consider the size of your business. That means your yearly income as a business and your staff’s payroll. Ideally, the more these values, the higher the cost of your premium.    

The types of vehicles you have in your care. 

When you pay for insurance, the insurer is helping you carry some amount of risk. In this case, the risk involved are the cars in your possession. So, if you usually have valuable vehicles in your garage, you will pay more for your premium. 

The average number of vehicles you have per day

This part is straightforward. The more cars you have in your garage, the more you will pay for your garage keepers’ premiums. 

Policy limits and deductibles 

Your policy limit is the amount of coverage you pay to get from your insurer. Deductible, however, is the amount you pay out of pocket when an incident occurs. Usually, you have to pay more money to cover a larger limit. However, a larger deductible means you will be paying less for insurance. While a large limit might benefit you in the event of an incident, a large deductible means you will pay more from your pocket if an incident occurs.   

Business experience

The more experience you have, the more data your insurer has to evaluate the risks involved in offering your coverage. As a result, insurance companies consider young businesses too risky because there is no data to predict their behavior. Therefore, young businesses might pay more for their garage keeper’s insurance. 


The loss run describes the history of all of your company’s insurance losses and claims. Insurance premiums tend to be on the high side for companies with more losses and claims. The reason is that your insurer believes your history is an indication that your business will likely have more claims in the future.  

How to save money on garage keepers’ Insurance costs?

Garage keepers’ insurance can be a little expensive. However, there are some things you can do to control the cost of your premium. The following are some of them. 

Compare several quotes

As with any other coverages, it is critical to consider all of your alternatives. Policy premiums frequently differ between insurers. Therefore, try to examine at least two or three quotations before choosing a policy. Also, do not stop checking quotations after you have gotten a policy. The reason is that every year, there is a possibility that the price you pay for a premium will change. So, every time you wish to pay, try to check around to see if there are better options.

Working with a broker like Simply Business,, or Smart Financial is a good way to compare several quotes easily and conveniently in one place.

Implement safety initiatives

Insurance companies prefer firms that value safety. You will see a reduction in preventable accidents if you commit to educating your personnel on best practices and make it plain that you will not tolerate dangerous activities. Online, there are step-by-step safety programs that may help you teach your personnel and avoid future mishaps. When your insurance company sees that you commit to an effective safety and security plan, they might offer you discounts on your premiums.  

Get the best limits and deductibles

When you buy garage keepers’ insurance, you get to choose your policy’s limits and deductibles. Coverage with a low limit and a large deductible will be less expensive. But keep in mind that it’s always better to be cautious than sorry. Sometimes, a low limit and a high deductible can mean more expenses after an accident. In some cases, the expenses are so high that the savings you aim for do not make sense anymore.

Before rushing to select a garage keepers insurance coverage, thoroughly consider your business’s hazards. After you’ve determined your liabilities, decide on your limitations and deductibles that is best.

Select the best payment plan 

When you and your insurance agent set up your policy, you will be given the option of how frequently you wish to pay. The company might bill you monthly, seasonally, or annually. In general, the more often you write a check, the greater your premium. So, if you can afford to pay in one lump payment at the start of the year, do so. Although this can a huge sum, it can save you some money in the long term.

Combine your insurance policies

Many insurance providers will enable you to add garage keepers’ coverage to your general liability policy. If this option is available, it may result in savings for combining several coverages. When you bundle certain critical coverages, companies will frequently provide lower prices.

Seek assistance from an independent agency

If you are confused, there are lots of independent agencies out there. An experienced and well-established independent insurance agency will be able to give vital assistance by steering you toward carriers with the most competitive rates and who are most knowledgeable about your unique industry.

What does garage keepers’ insurance cover?

Garage keepers’ insurance is designed to safeguard your customers’ vehicles while they are in your care. The types of protection given by garage keepers’ insurance are as follows.

Legal liability is one of the most expensive forms of lawsuits that this type of coverage will protect against. This coverage protects the garage owner against losses caused by one of its workers’ carelessness. For example, if an automobile were damaged during repairs by the technician, this coverage would kick in.

Direct primary

This policy can safeguard your customer’s vehicle if it is destroyed by harsh weather or stolen. This coverage will apply regardless of who is to blame for the harm.

Direct excess

This is comparable to direct primary coverage in that it is activated regardless of fault. However, rather than covering the whole amount for the theft or damage, it will only cover the extra amount that the owner’s insurance covers.

Who needs garage keepers’ insurance?

This form of liability insurance is essential for small car firms and large corporations since it protects them from financial problems. This coverage is excellent for the following businesses: 

  • Towing companies 
  • Auto retailers 
  • Body shops 
  • Service stations 
  • Car washes 
  • Repair shops, etc.

Garage keepers’ insurance companies 

Numerous companies provide garage keepers’ insurance for businesses. Irrespective of what you do and the size of your business, there is a company out there for you.After thoughtful research, here are our top five providers of garage keepers’ insurance for your consideration.

What does garage keepers’ insurance not cover?

Garage keepers’ insurance covers you if a client’s vehicle is harmed or destroyed while being maintained or in your custody. These include scenarios such as  

  • Damages due to harsh weather problems
  • Fire damage 
  • Theft 
  • Vandalism at your establishment
  • Other unintentional harm, such as impact

However, these policies do not cover the damage caused by poor service, faulty components, inadequate warranties, and staff theft. Furthermore, customer belongings inside their vehicles, including non-factory sound equipment, are exempt from the standard coverage. 

The biggest risk that garage keepers’ insurance does not cover is liability protection for physical injury or property damage caused by the above accidents. If you need coverage for such accidents, you must buy garage liability insurance. Learn more if you need both garage keepers and garage liability insurance.

Thang Truong
Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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