Mechanic insurance for service and repair garages
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Insure your mechanic, service and repair garage business with zero hassle
Running a service and repair garage as a mechanic involves managing customer vehicles, operating tools and equipment, and maintaining premises, making mechanic insurance essential for your business.
In partnership with some of the leading UK insurers, we’ll not only get you a better mechanic insurance deal with the best cover available, we will work hard to keep you as a customer year after year.
24/7 claims service
We’re here for you round the clock when you need us most.
Fairer prices for all
We compare the market to find the right deal for you as a mechanic and garage owner.
World-class support
You’ll get your own UK-based human to look after you for the duration of your policy.
We use a combination of technology and a wealth of experience to give you unrivalled cover and more affordable motor trade insurance prices.
With over 50 years of experience providing top-quality insurance for the motor trade, you can be sure we’ve got you covered.
What is mechanic insurance?
Mechanic insurance for service and repair garages is a motor trade policy tailored to cover the unique risks faced by mechanics and their garages
Motor trade insurance is not just a legal requirement for many businesses but also a crucial risk management tool. Without proper insurance, a business could face significant financial losses from accidents, theft, or damages. Here are some key reasons why cover insurance is vital:
- Legal compliance: Covers risks like customer vehicle damage and workplace safety to meet legal standards and avoid fines.
- Financial protection: Safeguards your business against losses from accidents, theft, or liability claims involving vehicles or tools.
- Peace of mind: Ensures you can focus on running your garage with confidence, knowing you’re protected from major risks.
Types of cover
Road risk insurance
Road risk insurance is a fundamental component of motor trade cover, including mechanics and garages. It allows traders to legally drive vehicles on public roads for purposes such as test drives, deliveries, or customer collections. There are three levels of road risk cover:
- Third-party only (TPO): Covers damage to other people’s property or injury to others. It’s the minimum legal requirement.
- Third-party, fire and theft (TPFT): Includes TPO cover and adds protection against fire damage and theft of vehicles.
- Comprehensive: Offers the highest level of protection, covering third-party risks, fire, theft, and damage to the trader’s vehicles.
Combined insurance
Combined motor trade insurance provides broader cover, encompassing road risks and additional protections such as:
- Business interruption: Covers lost income and additional expenses if your business is unable to operate due to an insured event.
- Premises insurance: Cover for damage or theft at your garage.
- Material damage: Protects vehicles and stock stored on-site.
- Employer’s liability: Required cover for workplace injuries or illnesses.
- Public liability: Covers legal claims for injury or property damage.
- Tools and equipment: Safeguards your essential machinery and tools.
- Extra drivers: Cover for employees who may be driving customers’ cars.
How much does mechanic insurance cost?
Typically, mechanic service and repair garage insurance premiums can vary, influenced by the cover level and specific details of your business.
Key factors affecting how much motor trade insurance costs:
Type of cover
Is the level of cover selected third-party only (TPO), third-party, fire and theft (TPFT) or comprehensive.
Nature of business
Service complexity, like bodywork or diagnostics, can influence costs. Work on high-value cars can also impact.
Location and security
Urban locations may attract higher premiums, but secure premises with CCTV and alarms can reduce risks.
Vehicles covered
Premiums will depend on the types of vehicles serviced, such as standard, electric, or luxury cars.
Driver details
Employees test-driving vehicles will impact costs, with driving records and experience being key considerations.
Policy customisation
Adding cover for tools, premises, and liabilities ensures tailored protection but may affect overall costs.
Mechanic insurance frequently asked questions
What is motor trade insurance and do I need it?
Motor trade insurance is a specialist policy for anyone who works with vehicles for profit — whether you're buying and selling cars, repairing, valeting, recovering, or testing vehicles. If you carry out any motor trade activity, even part-time, you're legally required to have at least third-party road risks cover. Standard personal car insurance won't cover you for business use.
What's the difference between road risks and combined motor trade insurance?
Road risks insurance covers you to drive vehicles on public roads as part of your motor trade activities — whether they're your own vehicles or customers'. Combined motor trade insurance goes further, adding protection for your premises, tools, equipment, stock, public liability, and employers' liability. If you work from premises or have employees, a combined policy is usually the better choice.
Can I get motor trade insurance if I only trade part-time?
Yes — we arrange motor trade insurance for part-time traders as well as full-time businesses. You'll still need to demonstrate that you're running a genuine motor trade operation, even if it's on a small scale. Visit our part-time motor trade insurance page for more details.
How do I prove I'm a legitimate motor trader?
Insurers require evidence that you run a genuine motor trade business. This can include invoices or receipts from vehicles bought or sold, online or print advertisements, tax records, or business bank account details. The more evidence you have, the smoother the process. Our team can guide you through what's needed when you get in touch.
Are customers' vehicles covered while they're in my garage?
Yes — customers' vehicles in your care, custody, and control are covered under a motor trade combined policy. This means if a customer's vehicle is damaged while it's with you for a service, MOT, or repair, you're protected. It's one of the most important elements of garage insurance and something a standard road risk policy won't provide.
Who actually underwrites my policy?
We're a broker, which means we arrange cover on your behalf with a handpicked panel of trusted insurers. You'll see exactly who's underwriting your policy before you commit to buying.
Why can I trust insurd?
We've been arranging insurance for over 50 years — now trading as insurd — and we're authorised and regulated by the Financial Conduct Authority (Firm Register Number: 308508), and over a thousand real customers have shared their experiences with us on Trustpilot.
You can verify our status directly on the FCA register.
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