Coverage
Commercial Auto Insurance for Auto Repair Shops
Coverage for the vehicles your shop owns, the cars your employees drive on shop business, and the part of your policy that responds when technicians drive customers’ vehicles.
By the Repair Shop Insurance editorial team · Updated
Vehicles your shop owns
A business auto policy covers vehicles titled to or leased by the business: a service truck, a parts delivery van, or a shop pickup. It generally includes:
- Auto liability for injuries and property damage your drivers cause to others. States set minimum limits for registered vehicles, and many businesses carry higher limits.
- Physical damage — comprehensive and collision — for the vehicles themselves, if selected.
- Medical payments or personal injury protection, and uninsured/underinsured motorist coverage, depending on your state’s rules and your selections.
Insurance companies look closely at drivers. Expect to provide names, license information, and driving history for anyone who drives shop vehicles.
Employees driving their own cars
When an employee picks up parts or makes a bank run in their own car, their personal auto policy is generally first in line. If a serious accident exceeds their limits, the injured party may pursue the shop as well. Hired and non-owned auto liability is designed to protect the business in that situation. It doesn’t cover damage to the employee’s car.
Road tests and customers’ vehicles
Driving customers’ vehicles is routine for a repair shop, and it is where coverage gaps most often hide. The question is which of your policies provides auto liability when a technician is driving a vehicle the shop doesn’t own:
- On a garage policy, the auto liability part is generally designed with garage operations in mind, including driving customers’ vehicles.
- On a commercial general liability policy, injury and damage arising from auto use are generally excluded, so auto liability has to come from your commercial auto coverage — and not every commercial auto setup applies to customers’ vehicles in your care.
Because the answer depends on the specific policy wording, confirm it directly rather than assuming. See garage liability vs. general liability for the background, and road test coverage for how each part of a road-test accident is handled.
| Who’s driving what | Injury and damage to others | Damage to the vehicle itself |
|---|---|---|
| Your service truck or parts van | Commercial auto liability on vehicles you own. | Commercial auto physical damage (comprehensive and collision), if selected. |
| An employee’s own car on a parts run | The employee’s personal auto policy first; non-owned auto liability can protect the shop. | Typically the employee’s own auto insurance. |
| A technician road-testing a customer’s car | Auto liability that applies to customers’ vehicles — through a garage policy or appropriate commercial auto coverage. | Garagekeepers, if collision coverage is included. |
Your service truck or parts van
- Injury and damage to others
- Commercial auto liability on vehicles you own.
- Damage to the vehicle itself
- Commercial auto physical damage (comprehensive and collision), if selected.
An employee’s own car on a parts run
- Injury and damage to others
- The employee’s personal auto policy first; non-owned auto liability can protect the shop.
- Damage to the vehicle itself
- Typically the employee’s own auto insurance.
A technician road-testing a customer’s car
- Injury and damage to others
- Auto liability that applies to customers’ vehicles — through a garage policy or appropriate commercial auto coverage.
- Damage to the vehicle itself
- Garagekeepers, if collision coverage is included.
Tell us what your shop drives — owned vehicles, employee cars, and customer road tests.
Get a QuoteWhat commercial auto doesn’t cover
- Customers’ vehicles as property — see garagekeepers insurance.
- Tools and equipment carried in a vehicle — typically tools and equipment (inland marine) coverage.
- Liability above your auto limit — that’s what an umbrella policy is for.
- Towing operations and loaner or rental vehicles, unless specifically underwritten and included.
Frequently Asked Questions
Can I just keep my shop truck on a personal auto policy?
Personal auto policies often limit or exclude vehicles used primarily for business or owned by a business. If the vehicle is titled to the business or used for shop work, commercial auto is usually the appropriate coverage. Check with your insurer before relying on a personal policy.
My shop doesn’t own any vehicles. Do I need commercial auto?
You may not need coverage for owned vehicles, but you still need to address driving: employees running errands in their own cars, and technicians driving customers’ vehicles. Hired and non-owned auto liability, or the auto liability part of a garage policy, is how that exposure is usually handled.
Does commercial auto cover towing?
Towing for others is a distinct operation that insurance companies underwrite separately. If you tow, including occasionally, say so when you request a quote.
Related Coverage & Guides
- Are Customers’ Cars Covered During Road Tests?Which coverage responds to each part of a road-test accident, and how to reduce the risk.
- Garagekeepers InsuranceCoverage for customers’ vehicles in your care, including legal liability vs. direct options.
- Umbrella InsuranceExtra liability limits above your general liability, auto, and employers liability.
- Mobile Mechanic InsuranceLiability, tools on the road, and your service vehicle when the job comes to you.
- Auto Glass Shop InsuranceMobile installs, windshield replacement, camera calibration, and install vans.
- Tools & Equipment InsuranceInland marine coverage that follows tools and diagnostic equipment wherever they go.
Get a Quote
Tell us about your shop.
Tell us how to reach you and which coverages you’re interested in, and we’ll start reviewing insurance options for your business.