How Much Does Garage Keepers Insurance Cost?
When running an auto repair shop, body shop, detailing service, or even a used car dealership, one of the most important investments you can make is Garage Keepers Insurance. Many business owners mistakenly believe that standard liability insurance is enough to protect their operations. However, when customers leave their vehicles in your care, custody, or control, your general liability policy will not cover damage to those vehicles. That’s where Garage Keepers Insurance becomes essential.
In this post, Garage Keepers Insurance will break down what impacts the cost of this coverage, what business owners can expect to pay, and why it is worth every penny. Along the way, we’ll also explore related auto dealer insurance options, auto insurance deals, and best auto insurance deals to give you a complete picture of coverage.
What is Garage Keepers Insurance?
Garage Keepers Insurance is a specialized policy that protects customer vehicles while they are in your possession. For example, if you are repairing, storing, or installing a windshield on a car, and that vehicle is damaged by theft, fire, vandalism, or accidental damage, your business would be liable. Without Garage Keepers Insurance, you would be responsible for paying those damages out-of-pocket.
Unlike auto dealer insurance coverage that focuses on vehicles owned by the dealership, Garage Keepers Insurance strictly protects customer-owned vehicles. This makes it a crucial part of any auto repair or dealer’s insurance portfolio.
Average Cost of Garage Keepers Insurance
So, how much does Garage Keepers Insurance cost? The cost can vary based on several factors:
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Business Type – Auto repair shops, windshield and window installers, and body shops may pay different premiums depending on their risk level.
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Location – High-crime areas or locations with a higher risk of weather damage (such as Florida) typically face higher insurance costs.
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Coverage Limits – The more vehicles you store or the higher their values, the higher your premium will be.
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Deductibles – Choosing a higher deductible can help lower your monthly premium.
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Claims History – Businesses with a history of claims may pay more for coverage.
On average, small auto shops may pay anywhere between $1,000 and $3,000 annually for Garage Keepers Insurance, while larger dealerships or auto repair centers with high-value vehicles could pay $5,000 or more per year.
Why Garage Keepers Insurance is Worth the Cost
Many business owners try to cut costs by shopping for the best auto insurance deals, but skipping Garage Keepers Insurance is risky. Imagine this scenario:
A customer leaves their luxury car in your care for window replacement. Overnight, a fire breaks out and damages multiple vehicles in your shop. Without Garage Keepers Insurance, you would face tens of thousands of dollars in liability.
With coverage, the insurance company steps in to cover damages, ensuring your business stays financially secure. That’s why even though auto dealer insurance cost may feel like an added expense, it is a necessary investment in your business’s future.
Comparing Garage Keepers Insurance to Auto Dealer Insurance
Garage Keepers Insurance and auto dealer insurance coverage often go hand-in-hand, but they are not the same.
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Auto Dealer Insurance protects dealership-owned vehicles, employees, and operations.
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Garage Keepers Insurance protects customer-owned vehicles while in your care.
Many auto dealer insurance companies offer bundle deals, which can help reduce overall costs. For example, you may find State Farm auto insurance bundle deals that combine garage liability, garage keepers, and property insurance. These auto insurance best deals allow businesses to save money while staying fully covered.
Florida Auto Dealer Insurance and Garage Keepers Costs
One of the most common questions business owners ask is about Florida auto dealer insurance. Because Florida is prone to hurricanes, floods, and high storm risks, businesses in the state often pay higher premiums for auto dealer insurance coverage and Garage Keepers Insurance.
A Florida auto dealer insurance quote may range from $2,500 to $7,000 annually, depending on the size of the dealership and the value of customer vehicles stored on the lot. If your business is located in Florida, shopping around for the best deal auto insurance and working with a trusted auto dealer insurance company can help lower costs.
Finding the Best Auto Insurance Deals
Even though Garage Keepers Insurance is unique, many business owners also look for the best auto insurance deal for their company vehicles. Whether you operate with tow trucks, loaner vehicles, or transport cars, you’ll want to secure deals on auto insurance to reduce operating costs.
Some of the most effective ways to find the best deal on auto insurance include:
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Compare Multiple Quotes – Get quotes from at least three different auto dealer insurance companies.
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Ask About Discounts – Many providers offer discounts for safe driving records, bundled coverage, or higher deductibles.
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Look for Bundle Options – Combining Garage Keepers Insurance with auto dealer liability insurance, workers’ compensation, or property coverage can often lead to the best deal for auto insurance overall.
Used Auto Dealer Insurance vs. Garage Keepers Insurance
If you are a used car dealer, you may already carry used auto dealer insurance or used car auto dealer insurance. These policies protect your dealership-owned inventory. However, if customers bring in their vehicles for service or trade-ins, you will still need Garage Keepers Insurance to cover those cars.
This is why many dealer auto insurance policies now include both auto dealer and garage keepers coverage. By combining them, you get full protection at a lower auto dealer insurance cost.
Final Thoughts
So, how much does Garage Keepers Insurance cost? While the price varies based on your location, business type, and coverage needs, the peace of mind it offers is invaluable. Whether you’re running a small windshield installation shop or a large auto dealership, having Garage Keepers Insurance ensures you won’t face financial ruin if a customer’s car is damaged under your care.
When comparing auto insurance deals, always prioritize the right coverage over the lowest cost. With the right provider, you can find the best deal auto insurance and comprehensive Garage Keepers Insurance that protects your business from unexpected losses.
FAQs About Garage Keepers Insurance
1. What does Garage Keepers Insurance cover?
Garage Keepers Insurance covers damage to customer vehicles while they are in your care, custody, or control. This includes fire, theft, vandalism, and accidental damage.
2. How much does Garage Keepers Insurance cost per year?
On average, small shops pay between $1,000 and $3,000 annually, while larger dealerships may pay $5,000 or more depending on their risk level and location.
3. Is Garage Keepers Insurance required by law?
While not always required by law, many states and lenders mandate it as part of auto dealer insurance requirements, especially if you are storing or servicing customer vehicles.
4. Can I get Garage Keepers Insurance with State Farm?
Yes. Major insurers such as State Farm auto insurance bundle deals often include Garage Keepers coverage as part of their commercial auto or dealer insurance packages.
5. What’s the difference between Garage Liability and Garage Keepers Insurance?
Garage Liability covers your business operations, while Garage Keepers Insurance specifically covers customer-owned vehicles in your possession.
6. How do I get the best deal on Garage Keepers Insurance?
Compare quotes from multiple auto dealer insurance companies, ask about bundle discounts, and make sure you are meeting all auto dealer insurance requirements to get the best auto insurance deals available.