Garage Keepers Insurance Requirements by State
When you operate a business that stores, repairs, or services customer vehicles, having the right coverage isn’t just optional—it’s a necessity. Garage Keepers Insurance provides financial protection for damages to a customer’s car while it is in your care. Whether you’re running a small auto repair shop, a large dealership, or a used car lot, understanding garage keepers insurance requirements by state can save your business from costly lawsuits and claims.
At Garage Keepers Insurance, we help auto businesses navigate coverage rules, find auto insurance deals, and ensure compliance with state laws. In this guide, we’ll break down what you need to know about auto dealer insurance coverage, state requirements, and how to secure the best auto insurance deals for your business.
What is Garage Keepers Insurance?
Garage Keepers Insurance protects businesses that take custody of customer vehicles. If a customer’s car is damaged due to fire, theft, vandalism, or collision while in your care, this policy provides coverage. It’s different from general liability insurance, which protects against third-party injuries or property damage unrelated to vehicles in your possession.
For auto dealers, repair shops, body shops, and detailers, dealer auto insurance combined with garage keepers insurance ensures complete protection. Many states require businesses in the automotive sector to carry this coverage as part of their licensing.
Garage Keepers Insurance Requirements by State
Each state has unique requirements for auto dealer insurance coverage and garage keepers policies. Here’s a general overview:
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Florida Auto Dealer Insurance: Florida requires auto dealers to carry a garage liability policy with minimum limits. Businesses must also secure garage keepers coverage to protect customer vehicles. To stay compliant, many dealers search for a competitive auto dealer insurance quote Florida to compare costs and coverage.
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California & Texas: Both states require auto dealers to provide proof of liability coverage before receiving a dealer license. Adding garage keepers insurance is strongly recommended to protect against damage to customer vehicles.
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New York: Dealers must meet strict auto dealer liability insurance requirements, and businesses storing customer vehicles must maintain garage keepers insurance.
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Midwestern States (Ohio, Michigan, Illinois): Many states in this region have minimum liability limits but encourage or mandate garage keepers insurance for repair shops and used car dealers.
Since state rules differ, business owners should check their state’s auto dealer insurance requirements before applying for a license.
Why Garage Keepers Insurance Matters for Auto Dealers
Owning an auto dealership or repair shop means handling high-value assets—your customer’s vehicles. Without garage keepers insurance, your business could be responsible for thousands of dollars in repair or replacement costs.
For example:
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A hailstorm damages multiple customer cars on your lot.
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A fire breaks out in your shop, destroying several vehicles.
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Theft or vandalism occurs while vehicles are in your care.
In each case, garage keepers insurance steps in to cover the losses. Without it, your standard liability policy may not protect you.
This is why many businesses seek best auto insurance deals and auto insurance best deals to bundle coverage at affordable rates.
Cost of Garage Keepers Insurance
The auto dealer insurance cost varies depending on several factors:
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Type of business (dealership, repair shop, or service center).
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Location and state requirements.
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Number of employees and vehicles stored.
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Chosen coverage limits and deductibles.
By shopping around with different auto dealer insurance companies, businesses can find the best deal on auto insurance without sacrificing protection. Companies like state farm auto insurance bundle deals can also help reduce costs by combining policies.
Types of Businesses That Need Garage Keepers Insurance
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Used Auto Dealer Insurance – If you sell used cars, state laws often require you to carry liability and garage keepers coverage. Used car auto dealer insurance ensures customer vehicles are protected during test drives, repairs, or storage.
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Repair Shops & Mechanics – Customer cars left overnight or for extended repairs need full coverage against accidental damages.
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Detail Shops & Car Washes – Even temporary custody of a car puts your business at risk.
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Towing & Storage Lots – Vehicles towed and stored require protection against unexpected losses.
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Franchise Dealerships – Larger operations benefit from auto dealer insurance bundle deals to cover both liability and garage keepers.
How to Find the Best Auto Insurance Deals for Garage Keepers
When shopping for coverage, business owners should compare multiple providers to find the best auto insurance deal. Look for companies that offer:
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Auto dealer insurance quotes specific to your state.
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Bundle discounts (garage liability + garage keepers + workers comp).
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Coverage tailored to auto dealer insurance requirements.
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Affordable premiums without sacrificing protection.
Working with an experienced auto dealer insurance company ensures you comply with state regulations while getting the best deal for auto insurance.
FAQs About Garage Keepers Insurance
Q1: Is garage keepers insurance required in every state?
Not always. Some states mandate it for auto dealers, while others make it optional. However, many lenders, licensing boards, and customers require proof of coverage.
Q2: What’s the difference between garage liability and garage keepers insurance?
Garage liability covers third-party injuries and damages, while garage keepers insurance covers customer vehicles in your custody.
Q3: How much does garage keepers insurance cost?
The auto dealer insurance cost depends on state laws, location, and your business type. Getting an auto dealer insurance quote helps determine exact pricing.
Q4: Can I get bundle deals with garage keepers insurance?
Yes. Many insurers, including State Farm auto insurance bundle deals, allow you to combine liability, workers comp, and garage keepers for savings.
Q5: Do used car dealers need garage keepers insurance?
Yes, used auto dealer insurance must include garage keepers coverage to protect customer vehicles during storage, transport, or repairs.
Final Thoughts
Every state has unique auto dealer insurance requirements, but one thing is consistent—garage keepers insurance is essential for protecting your business and your customer’s vehicles. At Garage Keepers Insurance, we specialize in helping businesses secure auto insurance best deals and coverage that meets both legal obligations and financial needs.
Whether you’re looking for used car auto dealer insurance, a Florida auto dealer insurance quote, or the best deal on auto insurance, our team ensures your business stays covered. Protect your customers, protect your assets, and protect your future with a tailored garage keepers policy.