Repair shop coverage guide
Insurance for auto repair shops — what to carry, and what it costs
Updated 2026-06-11 · by Brokly
What insurance do auto repair shops need?
Direct answer: insurance for auto repair shops starts with workers’ comp — required in nearly all states — with 5 more coverages matched to the trade below. For a typical repair shop that’s ≈$690–$4.2k/yr depending on the state (filed rates $0.76–$5.19/$100 payroll, 2024).
- Licensed brokerage· NPN 22253061
- Most US states
- A-rated carriers
In detail
The coverages, one by one
Workers’ comp is governed state by state — pick your state in the table below for the statute and the modeled cost. The rest is the trade’s exposure map.
If a mechanic, technician, or service writer is hurt on the job.
What it covers, and what it doesn’t
Typically covers
- Medical bills for a work injury, at rates the state sets
- Part of the injured employee's lost wages
- The employer too: covered employees generally can't sue over the injury
Typically doesn’t
- Injuries outside work
- Independent contractors, in most states
- Lawsuits that get around the can't-sue trade-off — that's the employer's liability part of the same policy
If you crash a shop vehicle — a tow truck, parts runner, or a customer's car on a test drive.
What it covers, and what it doesn’t
Typically covers
- Liability when a business vehicle injures someone or damages property
- Accidents in vehicles titled to the business, driven by employees for work
- The liability minimums states set for business vehicles
Typically doesn’t
- Your liability when employees drive their own cars for work — that's hired and non-owned auto; the employee's own car stays on their personal policy
- The freight or goods being hauled — that's cargo or inland marine coverage
- Damage to your own vehicle, unless physical damage coverage is added
If a customer is hurt in your waiting area — or a repair you finished fails later and causes harm.
What it covers, and what it doesn’t
Typically covers
- Injuries to customers, visitors, and other third parties
- Damage your operations cause to someone else's property
- Legal defense for covered claims
Typically doesn’t
- Your employees' injuries — that's workers' compensation
- Mistakes in professional advice or design — that's professional liability
- Redoing your own faulty workmanship itself
If a customer's car is damaged while it's in your care — on the lift, in the bay, or on your lot.
What it covers, and what it doesn’t
Typically covers
- Customers' vehicles in your care — on the lot, on the lift
- Fire, theft, vandalism, and collision damage to those vehicles, per the form
- The gap general liability leaves for customers' cars in your care
Typically doesn’t
- The faulty repair work itself
- Customers' belongings left in vehicles, typically
- Your own business vehicles — that's commercial auto
If your scanners, diagnostic gear, and hand tools are stolen, lost, or damaged — in the shop or on the road.
What it covers, and what it doesn’t
Typically covers
- Tools and equipment that travel — in trucks, on job sites, between locations
- Theft from a vehicle or job site, a common loss
- Rented or borrowed gear, when it's listed on the policy
Typically doesn’t
- Gradual wear and breakdown
- Tools that stay at your shop — that's commercial property
- The vehicles themselves
Bundles your premises property, liability, and lost income into one policy for a small shop.
What it covers, and what it doesn’t
Typically covers
- A package: general liability plus commercial property
- Usually business interruption coverage too
- The liability coverage clients ask to see on a certificate of insurance
Typically doesn’t
- Vehicles — that's commercial auto
- Workers' comp, which is written as its own policy
- Professional advice claims — that's professional liability
Exact terms live in the policy — these are the typical boundaries.
Sources & methodology
Sources: NAIC — Small Business Insurance (retrieved 2026-06-06) · California Department of Insurance — Commercial Insurance Guide (retrieved 2026-06-06) · Oregon DAS Risk Management — Insurance Clauses: Garage Insurance (retrieved 2026-06-06)
By the numbers
What workers’ comp costs a typical repair shop
Modeled annual premium for each state’s most common repair shop size, from that state’s own filed rate and observed payroll. All 51 states: rates & costs →
Most expensive states
- New Jersey≈$4.2k/yr
- California≈$2.9k/yr
- Wisconsin≈$2.8k/yr
- Connecticut≈$2.8k/yr
- Minnesota≈$2.6k/yr
Modeled — not quotes: each figure prices that state’s most common repair shop size band from the state’s own observed payroll (CBP 2023), so dollar order can differ from rate rank.
Get your number
That’s the model. Get your actual number.
Built from your state’s filed rates and typical payroll for your size. Your real premium depends on your payroll, class code, and claims history — a licensed advisor can price it today.
Get my price →- Licensed brokerage· NPN 22253061
- Most US states
- A-rated carriers
By state
Pick your state — what’s required there, and what it costs
Every linked state has the full guide: what the law requires there, the coverages that fit, and modeled costs — built from 71,481 auto repair shops across 31 states (CBP 2023).
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota †
- Ohio †
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington †
- West Virginia
- Wisconsin
- Wyoming †
† monopolistic state — workers’ comp must be bought from the state fund; a private policy can’t satisfy the requirement there. Other unlinked states lack a published rate or a defensible business-size cohort.
Sources: Oregon DCBS workers' compensation premium rate ranking study, June 2025 (calendar-year 2024 rates) (as of calendar year 2024, retrieved 2026-06-04) · US Census County Business Patterns 2023, state file (General automotive repair (NAICS 811111)) (as of 2023, retrieved 2026-06-05)
FAQ
Common questions
What work does class 8380 cover?
Auto service and repair work is NCCI class 8380 — mechanical repair and service centers, including their drivers.
Why does my state matter so much?
Workers’ comp is state law — the employee threshold that triggers it, the rates, and the market structure all differ by state. That’s why every state above gets its own guide.
Someone asked me for a certificate of insurance — what is it?
The one-page proof your coverage exists — landlords, general contractors, and client contracts ask for it routinely, and it’s often the reason auto repair shops buy insurance in the first place. Certificate of insurance, explained →
- Licensed brokerage· NPN 22253061
- Most US states
- A-rated carriers