Quick answer: Auto repair shops need garage liability for their operations and completed work, garagekeepers coverage for customers’ vehicles in their care, property and tools coverage, and workers compensation for mechanics. General liability alone does not cover customer cars.
Reviewed by Jason Ayala, licensed agent (CA #0G67764) · Updated October 2026
The major mistake that garage owners make when deciding on insurance is when they base their decision solely on price.
We get it! Premium costs are a major factor, but knowing what you are getting for that premium can literally make or break you and your business in the event of a loss.
Different garagekeepers policies cover different things.
Legal Liability – this is typically the least expensive garage package available. It comes in to play if a customer’s vehicle is damaged but the customer must prove that you are legally liable in order to recover damages from your insurance. This is not typically a good choice as it doesn’t end well for your relationship with your customer.
Direct Excess – this is much better than legal liability because there aren’t any stipulations that require your customer to prove your negligence. This coverage is only applicable AFTER the client files a claim with their own personal auto insurance carrier. If their policy doesn’t cover all of the damages, then the garagekeepers policy would apply.
Direct Primary – This is the broadest of the three options, mostly because in the event that a customer’s vehicle is damaged while in your possession, it removes the burden of proof from your customer. Thereby helping to retain a strong customer relationship. Basically, you, as the garage owner, are taking responsibility for any claims and you are not putting any additional burdens on your customer’s to file a claim with their own insurance company. Direct primary often works well for both the shop and the customer.
Of the three coverages described, direct primary gives your customers the broadest protection.
See also: Roadside assistance & towing
How we insure auto repair shops
- Map your operations. Repair, diesel, body, towing, smog and sales are rated differently.
- Set garagekeepers right. We match the limit to the value of vehicles you hold and choose legal liability or direct coverage.
- Cover building, lifts and tools. Property, equipment and business income.
- Compare carriers. Garage programs and specialty markets, plus workers comp for your mechanics.
Real client results
Frequently asked questions
What is the difference between garage liability and garagekeepers?
Garage liability covers injuries and damage your operations cause to others. Garagekeepers covers damage to customers’ vehicles while they’re in your care.
Does garage insurance cover customer cars?
Only with garagekeepers coverage. Without it, a customer’s car damaged in your shop may not be covered.