How Much Does Auto Repair Shop Insurance Cost? (Published Medians, 2026)

Updated 2026-10-17. Sources are listed at the end.

Disclosure: Some links on this page go to companies whose affiliate or referral programs we participate in or have applied to. If you buy through a link marked "(paid link)" we may earn a commission at no extra cost to you. It never changes what we write; every number here is cited to its source. How we make money.

This is general information, not legal or tax advice. Rules vary by state and change often. Confirm with the official source linked in each section, or with a licensed attorney, CPA or insurance agent, before you act.

Few insurers publish what auto repair businesses actually pay. One broker that does is Insureon, which publishes the median premiums from auto repair and mechanic businesses that applied for quotes through it. The median is the middle value, so a few extreme quotes don’t distort it. These numbers are a starting benchmark. Your premium depends on your state, revenue, payroll, limits, deductible and claims history.

Median monthly premiums for auto repair and mechanic businesses

Policy	Median monthly	Median annual	Typical limits / deductible shown
General liability	$54	$652	$1M per occurrence / $2M aggregate, $500 deductible
Business owner’s policy (BOP)	$149	$1,787	$1M / $2M, $1,000 deductible
Commercial package policy (CPP)	$101	$1,208	(for mid-size/higher-risk shops)
Workers’ compensation	$150	$1,796	depends on payroll and class codes
Commercial auto	$103	$1,227	depends on vehicles and drivers
Garagekeepers	$38 (average)	—	add-on to garage liability

Sources: Insureon auto repair insurance cost (page updated April 7, 2025) and Insureon garage keepers.

What a mobile mechanic vs a shop might carry

Insureon notes that “a mobile mechanic who works independently will usually pay less for insurance than a large repair shop with employees” (source). It doesn’t publish a mobile-only total, so we won’t invent one. A typical solo mobile setup to quote: general/garage liability + garagekeepers + commercial auto + tools/equipment. A shop with employees typically adds a BOP (or CPP) for the building and equipment, plus workers’ comp.

To budget, add up the medians for the policies you need, then replace each line with your real quotes.

What moves the price

Insureon lists these factors for auto services businesses (source):

business type (repair, towing, dealership)
value of business property
size and annual revenue
location
whether you store or service customer vehicles
whether you operate a garage
number of employees
policy limits and deductibles

Ways to lower the premium without gutting coverage

Bundle general liability with property in a BOP if you rent or own a shop. Insureon says it usually costs less than buying both separately.
Raise deductibles you can actually afford to pay out of pocket.
Classify workers correctly. Workers’ comp premiums are based on payroll and job classes, so misclassifying a worker throws them off. For whether someone is an employee or a contractor, the IRS looks at behavioral control, financial control and the relationship (IRS). State rules on who must carry workers’ comp vary; see insurance types.
Document safety practices. Fewer claims mean lower future premiums.
Compare several carriers. Prices for the same risk vary between carriers.

Turning premiums into your labor rate

Insurance is overhead, and overhead belongs in your labor rate. If your total insurance comes to (say) $350 a month, that’s $4,200 a year your billable hours have to cover. See the mobile mechanic pricing formula or plug it into the free labor quote calculator.

Get quotes

Compare online through NEXT Insurance or Insureon, or ask a local independent agent who writes garage policies. For what each policy covers, read garage liability vs garagekeepers vs commercial auto.

Commercial clients will ask for proof of these policies. See certificates of insurance for mechanics.

Sources

IRS, Independent contractor (self-employed) or employee?: https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
Insureon, How much does auto repair business insurance cost?: https://www.insureon.com/auto-services-business-insurance/repair-mechanics/cost
Insureon, Garage Keepers Insurance: https://www.insureon.com/auto-services-business-insurance/garage-keepers-insurance
Insureon, Mobile Mechanic Insurance: https://www.insureon.com/auto-services-business-insurance/mobile-repair-mechanics