Service and repair garage insurance

Service and repair garage insurance can help protect your business if something goes wrong, such as accidents, damage, or injury claims.

What is service and repair garage insurance?

Service and repair insurance is a type of motor trade insurance policy typically arranged for businesses that maintain, service, or repair vehicles. This can include routine servicing and diagnostics, MOT testing, and more specialist mechanical work.

If you work in this industry, you may want to consider choosing a combined service and repair garage insurance policy, which brings together several key covers under one plan. This type of policy can help protect your garage from many of the day-to-day risks you might face — from damage to customer vehicles to equipment theft, liability claims, or loss of income after a disruption.

What does service and repair garage insurance cover?

When customers entrust their vehicles to you, you are responsible for looking after them. For that reason, all service and repair garages should have road risks insurance.

Road risks insurance can protect customer vehicles in your care while you are driving them. It can be taken on a third-party, third party fire and theft, or comprehensive basis. This is important to test drive vehicles you have repaired or move them from one location to another.

Building on road risks cover, there are several other insurance covers for service and repair garages that you might consider for your motor trade policy.

• Employers’ liability and public liability insurance: Insurance that can cover the costs of claims for injuries from employees or members of the public in connection with your business. Employers’ liability is a legal requirement, and public liability insurance is highly recommended.
• Business premises cover: Can protect the rebuild cost of your business buildings.
• Tools and machinery cover: Insurance for the tools and machinery you need to do your job. Cover for tools on-site and in transit can be purchased.
• Diagnostic equipment cover: This provides cover for expensive electronic equipment used to diagnose faults with a range of vehicle marques.
• Money and keys cover: Can protect against the theft of necessary money and vehicle keys stored on-site.
• Service indemnity insurance: Can cover claims if faulty parts are fitted, or parts fitted incorrectly (otherwise known as defective workmanship cover).
• Demonstration cover: Allows vehicles to be taken on a test drive by members of the public (useful for occasional vehicle sales).
• Business interruption insurance: Can cover unforeseen circumstances that impact trading, such as fire or flooding in your garage premises.
• MOT loss of licence cover: Can protect MOT stations in the event of loss of licence.
• Engineering inspection policy: Can provide access to a qualified engineer to assess equipment and machinery in use. This can help you comply with legal requirements if you use equipment subject to mandatory inspections under health and safety law, such as lifting equipment or pressure systems.
• Legal expenses cover: Can help with the cost of legal advice and representation for commercial disputes or claims.
• Commercial vehicle cover: Can protect your van, recovery trucks, or other business vehicles your business owns.
• Cover for young motor traders: Can cover younger traders aged between 21-25.

These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses and any endorsements.

Does commercial garage insurance cover contents too?

Yes. A combined motor trade policy can include contents cover for:

• Tools: Both handheld and powered tools used in daily operations.
• Machinery: Lifts, compressors, tyre changers, and more.
• Diagnostic equipment: Often high-value and essential for repairs.
• Money: To protect cash stored on-site.
• Keys: This can be useful for businesses storing multiple vehicles.
• Vehicles: Customer or stock vehicles stored at your garage.

Why should garages consider service and repair garage insurance?

Working in a garage can come with many risks, from the responsibility of repairing customer vehicles to managing employees. Without appropriate insurance, incidents such as a fire or accidental damage to a customer’s vehicle could have significant financial implications for your business. Service and repair garage insurance can help protect you against these risks by combining key covers under one policy.

What businesses can be covered by car garage insurance?

Businesses that may benefit from this type of cover include:

• Garages offering repairs, services and MOTs
• Individuals offering repairs and services
• Recovery operators offering vehicle service and repairs
• Car dealerships offering repairs and services

How much does commercial garage insurance cost?

There isn’t a set price for commercial garage insurance. How much it costs depends on various factors, including:

• Level of cover and policy add-ons: The more cover you include, the higher the cost is likely to be.
• Value of tools and equipment being insured: If your garage relies on high-value tools or specialist equipment, you may pay more to insure them.
• Where your business is located: Garages in areas with higher crime rates or greater risk of flooding might face higher premiums.
• Age of driver: Road risk insurance costs can increase if your named drivers are younger, particularly under the age of 25.
• Security protocol: Security measures such as CCTV, alarms, or locked storage can help reduce insurance costs.
• Claims history: If you’ve made claims in the past, your insurance could cost more. A strong no-claims history may help you save.

How to save money on your garage business insurance

You could reduce your premium while staying protected by:

• Paying annually rather than monthly
• Building your no-claims bonus
• Increasing your voluntary excess
• Taking additional security measures
• Limiting the number of expensive tools you carry
• Limiting the number of named drivers aged 25 and under on your policy
• Limiting the number of employees on your road risks policy
• Limiting work on more expensive vehicles
• Employing experienced drivers with no (or few) motoring convictions or claims

Why choose Gallagher for service and repair garage insurance?

We have decades of experience sourcing motor trade insurance policies, so rest assured, we’ll help you find suitable cover to help protect you and your business.

• Easy and convenient: Compare prices from our panel of insurers
• Specialist guidance: A dedicated team of specialists can provide you with advice and guidance on finding suitable cover.
• Tailored policies: Every business is unique, which is why we tailor our policies to your unique circumstances and business needs.
• Immediate cover: Take out a policy and get immediate cover.*
• UK-based team: Speak to the friendly UK-based Gallagher SME Team to discuss your policy and find suitable cover.

* Immediate cover is subject to the terms and conditions of the policy. Eligibility criteria, underwriting requirements, and exclusions may apply. In some cases, additional information or documentation may be required before cover can commence. Please refer to the policy documentation or consult with your insurance provider for full details.

For a quotation, use our quote form or please call us on 01625 854443.

FAQs

For full terms and conditions please see the policy documentation.