Factors That Affect the Price of Garage Keepers Insurance
When you own or operate an auto dealership, repair shop, or body shop, one of the most important protections you need is Garage Keepers Insurance. This specialized coverage protects customer vehicles while they are in your care—whether being serviced, stored, or parked.
At Garage Keepers Insurance, we understand that business owners are always looking for the best auto insurance deals while ensuring full protection for their operations. However, the price of your garage keepers or auto dealer insurance coverage is not fixed. Several factors influence your premium, from location and services to vehicle types and claims history.
In this article, we’ll break down the key factors that affect the cost of garage keepers insurance and how you can secure the best deal on auto insurance for your business.
1. Type of Business and Services Offered
The nature of your business plays a significant role in determining insurance costs. For example:
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Auto repair shops and body shops may pay less compared to dealerships since they don’t usually store as many vehicles.
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Used car dealerships typically need broader used auto dealer insurance or used car auto dealer insurance because of increased risk with vehicle sales, test drives, and customer traffic.
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Dealerships offering financing or leasing may face additional auto dealer insurance requirements that influence their premium.
The more services you offer—such as repairs, sales, rentals, or bodywork—the broader your insurance needs become. This impacts your auto dealer insurance cost.
2. Location of Your Business
Insurance costs vary based on your business location. Urban areas with higher theft and accident rates usually have more expensive premiums compared to rural areas. For example, a business needing Florida auto dealer insurance may pay differently than one in another state due to local risks and regulations.
Some states also mandate specific auto dealer liability insurance limits, which can raise costs depending on compliance requirements.
3. Value and Number of Vehicles in Your Care
The more vehicles you store or service, the higher your potential liability. Insurers look closely at:
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The average value of customer vehicles in your lot.
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Whether you sell new vs. used cars (since used cars typically fall under used auto dealer insurance).
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The maximum number of cars stored at one time.
High-end vehicles or large inventory lots raise your auto dealer insurance cost significantly compared to smaller shops.
4. Coverage Options and Policy Limits
Not all auto dealer insurance coverage is the same. Choosing higher policy limits or broader protections will increase your premium. For example:
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Adding comprehensive and collision coverage for customer vehicles raises costs.
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Higher liability limits under auto dealer liability insurance protect you more but come with increased premiums.
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Bundled protections such as a State Farm auto insurance bundle deal may reduce your costs if you combine multiple policies.
Many businesses shop for auto insurance best deals by comparing policy options with different auto dealer insurance companies to strike the right balance between affordability and protection.
5. Claims History
Your insurance history plays a major role in pricing. If you’ve filed multiple claims in the past, insurance providers will see you as a higher risk. This often means higher costs for:
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Dealer auto insurance policies.
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Renewals with your current auto dealer insurance company.
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Future auto dealer insurance quotes from other providers.
Maintaining a clean record helps keep premiums lower and qualifies you for cheap auto insurance deals or even the best deal for auto insurance in your area.
6. Experience and Business Size
Established businesses with strong safety records often receive lower rates. Newer dealerships or repair shops may face higher premiums until they prove consistent risk management.
Smaller shops with fewer employees may pay less compared to large, multi-location dealerships that require broader auto dealer insurance programs.
7. State and Legal Requirements
Each state has unique laws for auto dealer operations. For instance:
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Some states mandate that every dealership obtain an auto dealer bond or certain liability limits.
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States like Florida require specific Florida auto dealer insurance guidelines for licensing.
Failure to meet auto dealer insurance requirements can result in penalties, fines, or business license suspension. Working with experienced agents at Garage Keepers Insurance ensures you’re compliant while finding the best deal auto insurance available.
8. Insurance Company You Choose
Not all auto dealer insurance companies are the same. Some specialize in working with dealerships and body shops, while others may not fully understand your unique risks.
At Garage Keepers Insurance, we partner with top providers, compare rates, and help you find the best deal on auto insurance without sacrificing coverage. Whether you’re looking for independent auto dealer insurance or full-service dealership protection, the right auto dealer insurance company makes all the difference.
How to Get the Best Auto Insurance Deal
Now that you know the factors influencing your premium, here are tips to secure the best deal for auto insurance:
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Compare multiple quotes from leading auto dealer insurance companies.
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Bundle policies with providers offering auto insurance bundle deals, such as State Farm.
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Maintain a clean claims history to qualify for the best auto insurance deals.
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Work with a specialized agent like Garage Keepers Insurance who understands your industry.
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Review coverage regularly to ensure you’re not overpaying for unnecessary protections.
Final Thoughts
The cost of Garage Keepers Insurance and auto dealer insurance coverage is influenced by many factors—from your business type and location to the vehicles you store and your insurance history. By understanding what affects your auto dealer insurance cost, you can make smarter decisions when shopping for policies.
At Garage Keepers Insurance, our mission is to help dealerships, repair shops, and auto businesses find the best deal auto insurance without compromising protection. Whether you need a Florida auto dealer insurance quote, used car auto dealer insurance, or are exploring options from top auto dealer insurance companies, we’ll guide you every step of the way.
Ready to protect your business? Contact Garage Keepers Insurance today for a free auto dealer insurance quote and discover the best auto insurance deal for your shop or dealership.