garage keepers liability insurance

Garage Keepers Liability Insurance: Guard Your Company with Extensive Coverage

It’s like a safety net for your small business, especially if you are in charge of parking, fixing, servicing, or storing your customers’ vehicles. Imagine this you own a car wash, and oops, an employee accidentally bumps into a pole. That’s where garage keepers insurance steps in, covering the repair costs for your customer’s car.

By the way, garage keepers insurance is also known as storage location insurance. Here’s the catch: it usually does not come bundled with a regular garage liability policy. You should chip in extra for that added protection.

Garage Keepers Insurance Policy

Garage Keepers Liability Insurance is a protective shield for your garage or parking business.

What It Covers:

When parking or storing your customers’ cars, this insurance steps in if there’s damage. This policy covers you, whether it’s from fire, vandalism, theft, or a collision during your garage operations.

Different Names in Different Places:

In some states, it might be called ‘Storage Location Insurance’ or ‘On-Hook Coverage’ (especially when dealing with towed vehicles).

Three Coverage Options:

Legal Liability:

Covers damage you are legally responsible for due to negligence in your shop.

Direct Excess:

  • Covers damage to a customer’s car, no matter whose fault it is.
  •  It does not cover the entire cost, just the excess beyond the customer’s primary insurance.

Direct Primary:

  • Covers damage regardless of fault or liability.
  •  Includes incidents like fire, theft, extreme weather, or vandalism, as long as you tried to protect the damaged vehicle.
  •  Broader coverage but usually pricier.

Choosing What’s Right for You:

You can decide if your Garage Keepers Liability Insurance covers “Specified Perils” or “All Risk/Comprehensive Perils.” This means choosing what kinds of accidents are protected.

Building Customer Trust:

Having the right coverage can impress your customers. You might gain a loyal customer if they know their cars are safe with you.

Important Reminder:

Check your liability policy for any exclusions. Make sure you know what situations might need to be covered.

garage keepers liability insurance

Who Needs Garage Keepers Insurance.

If you are fixing or working on people’s cars, it’s essential to consider getting garage keepers liability insurance. This particular insurance is like a safety net for your business. It’s not just for big words. It’s for real-life situations.

For example, if you run an auto body shop, auto repair shop, tow truck service, or even if you are into things like fixing car glass or doing oil changes, this insurance is for you. Even businesses that clean and detail cars, check emissions, restore car interiors, or run service stations can benefit.

Let’s discuss the reasons you require this insurance. Imagine you have a customer’s car at your place for some work. Something happens while it’s with you, and the car gets damaged or stolen. That’s where garage keepers liability insurance comes in to help. It is like a superhero shield for your company.

So, whether you keep cars at your place for a short or long time, this insurance is a good idea. It keeps your shop safe and sound, so you do not have to worry about unexpected troubles. It’s like having a friend who’s got your back when things get tricky.

Things Excluded From Garage Keepers Coverage

Now, let’s discuss what garage keepers liability insurance does not cover. It’s good to know these things so you can be prepared.

First, if there’s damage because of a mistake made by the car’s manufacturer or if the work done on the car needed to be corrected, the insurance might not cover it. Saying, “Oops, we did not do it, and the car was like that before!” is the equivalent of doing that.

Also, if the warranties for the car need the proper protections, the garage keeper liability insurance might not step in. It’s like having a tool that does not quite fit the job.

Now, let’s talk about what’s inside the car. If something inside the car gets damaged, the insurance might not cover it. But here’s a nice thing: you can include coverage for your customer’s stuff inside the car in your overall policy. Saying, “We care about your things too!” is what it is like. 

But remember, this usually does not cover things that are not permanently part of the car. It might only be covered if stuck or built into the vehicle. It’s like having rules to make sure everything’s fair and square.

Difference between Garage Keepers and Garage Liability Insurance

Garage Keepers Liability Insurance and Garage Liability Insurance are different. They each do other jobs to keep your business safe.

So, we know that Garage Keepers Liability Insurance takes care of any damage to a customer’s car while in your shop. It’s like a guardian for the vehicles you are working on.

Now, let’s talk about Garage Liability Insurance. This one is like a shield for your whole business. It helps if there’s any trouble caused by your employees or equipment, like if someone gets hurt or something gets damaged while you are doing your business. It’s like protecting against different problems, but here’s the catch: it does not cover the customer’s car.

That’s where Garage Keepers Liability Insurance steps in. It’s like the missing piece that looks after the customer’s vehicle. So, these two insurance buddies work together to ensure your business is covered from all angles.

garage keepers liability insurance

Cost of Garage Keepers Insurance 

Let’s discuss how much it costs to get that garage keepers liability insurance. It’s like picking the right amount of protection for your business.

First, the cost depends on a few things, like how much coverage you want and how big your deductible is. Also, there are different options: Legal, Direct Excess, or Direct Primary. Each option decides how much coverage you can get when something happens.

On average, you pay between $1,000 and $1,300 yearly for your garage business insurance. But, hey, keep in mind that this can change based on a bunch of things.

Now, here’s a tip: chat with your insurance agent. They are like your insurance best friend. They can help you determine the proper limits and deductibles for your business. Think about what might happen if something huge goes wrong. It’s like planning for the worst but in an intelligent way.

Oh, and here’s the thing: the limits and options can differ depending on your location and which insurance company you are talking to. So, finding an agent who knows their stuff is a good idea. They are like the experts who can guide you through this insurance talk.


Garage Keepers Liability Insurance is a safety net for your business, primarily if you work on or store customers’ vehicles. It covers damages during operations, like repairs or parking mishaps, providing comprehensive protection for your garage or parking business.

Garage Keepers Liability Insurance is crucial if you are in the business of fixing or working on cars, like auto repair shops, tow truck services, or even car detailing companies. It’s that extra layer of protection for unexpected events, ensuring your customers’ vehicles are covered while in your care.

Yes, they are different. Garage Keepers Liability Insurance focuses on customer vehicles in your shop, acting like a guardian for damages during repairs. On the other hand, Garage Liability Insurance is like a shield for your entire business, protecting against different problems but excluding coverage for customer vehicles.

The cost varies based on coverage, deductibles, and options like Legal, Direct Excess, or Direct Primary. On average, you pay between $1,000 and $1,300 annually. Consult with your insurance representative to determine your business’s proper limits and coverage, considering potential scenarios for a well-informed decision.

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