What is Commercial Garage Insurance?
Commercial garage insurance is specialist cover for businesses that maintain, repair, service, or store vehicles at a fixed location—whether that’s a large workshop, a multi-bay MOT centre, or an independent garage. A standard motor trade insurance policy might not go far enough for the specific risks and responsibilities of running a busy commercial premises.
Garages face unique challenges, from protecting valuable customer vehicles to safeguarding specialist equipment and dealing with risks like fire or theft. Commercial garage insurance is designed to keep your business protected, so you can focus on keeping your customers safely on the road.
The right cover gives you peace of mind, knowing your team, premises, and customers’ vehicles are looked after—no matter how busy your workshop gets.
What the experts say…
“A busy garage handles valuable vehicles, specialist tools, and customer trust every day. Tailoring your commercial garage insurance to your exact business keeps your reputation strong and your finances safe. Don’t settle for generic cover—always check the details, compare regularly, and protect what makes your garage unique.”
– Ian Beevis, Founder of Clean Green Compare
What’s Covered by Commercial Garage Insurance?
A commercial garage insurance policy can be tailored to your needs, covering day-to-day risks and helping you bounce back from unexpected events. If you move or road test customer cars, you’ll need dedicated road risks insurance alongside liability and property cover.
- Road risks insurance – Lets you and your staff drive customer vehicles for repairs, servicing, or MOT tests. Make sure your policy covers the types and value of cars you work with.
- Public liability insurance – Protects you if a customer or visitor is injured or their property is damaged on your premises.
- Employers’ liability insurance – Required by law if you employ anyone, including apprentices or part-time staff. Covers workplace injuries and illness.
- Premises and buildings insurance – Covers your workshop, offices, MOT bays, and waiting areas against fire, flood, or vandalism.
- Tools and equipment cover – Protects essential workshop tools, diagnostic devices, and machinery against theft or accidental damage.
- Business interruption insurance – Helps keep your business afloat if you’re unable to trade due to a major incident, like a fire or flood.
- Customer vehicles insurance – Ensures vehicles in your care are covered for loss or damage—even overnight or in storage.
Always check that your policy matches the size of your operation and the specific services you offer—every garage is different.
Optional Extras for Commercial Garage Insurance
You can customise your cover with extras to fit your business model. If you offer vehicle collection or delivery, goods in transit insurance is a smart addition. If you handle expensive keys or run courtesy cars, you may want extra protection for those assets. Some garages also need breakdown cover for recovery vehicles.
Covers vehicles, parts, or tools being moved between sites or collected/delivered for customers.
Protects against the cost of replacing lost, stolen, or damaged keys and fobs.
Ensures your courtesy fleet is properly covered while in customer use.
Keeps your own recovery or service vehicles on the road if something goes wrong.
For regular safety checks on lifts, ramps, and other workshop machinery (see HSE’s guidance).
Covers legal costs from disputes, contract issues, or claims against your business.
Only pay for the extras you actually need—tailoring your commercial garage insurance keeps costs down and your protection relevant.
What’s Not Covered?
Every commercial garage insurance policy has exclusions, so it’s vital to check the details before you buy or renew. Most policies won’t cover personal use of vehicles, unlisted drivers, or damage caused by failing to meet security requirements. Not declaring past claims or convictions is another common reason for claims to be refused.
- Personal use of vehicles – Cover is usually limited to business use and test drives, not social or private trips.
- Unlisted or unauthorised drivers – Only named staff are covered to drive or move vehicles.
- Poor security or storage – Claims can be denied if you don’t meet the agreed security standards for your site or vehicles.
- High-value or specialist vehicles – Some rare or performance cars may need extra cover or could be excluded.
- Undeclared claims or convictions – Not being upfront can invalidate your whole policy.
- General wear and tear – Standard policies don’t cover the cost of routine repairs or breakdowns due to normal use.
Who Needs Commercial Garage Insurance?
If you operate any business where customer vehicles are maintained, serviced, or stored, commercial garage insurance is essential. The UK government’s guidance on running a motor business makes clear that proper insurance is a legal requirement whenever you handle other people’s vehicles.
- Independent and franchised garages – Any site working on customer vehicles, from small workshops to main dealer franchises.
- MOT stations and testing centres – Businesses carrying out statutory MOTs and repairs.
- Body shops and accident repair centres – Garages specialising in crash repairs or resprays.
- Tyre, exhaust, and fast-fit centres – Quick-service workshops handling vehicle maintenance and safety checks.
- Classic car specialists and restorers – If you store, service, or repair high-value or classic vehicles for customers.
If customers leave their cars with you—even overnight—commercial garage insurance is a must for your reputation and legal compliance.
Get Commercial Garage Insurance Quotes Today
How to Get a Commercial Garage Insurance Quote
Getting a commercial garage insurance quote is simple when you’re prepared. Share clear details about your business, including your site size, the services you offer, how many staff you employ, and the vehicles you work on. For step-by-step help, check out the motor trade insurance guides.
How Much Does Commercial Garage Insurance Cost?
Commercial garage insurance premiums vary depending on the size of your operation, the vehicles you work with, your claims history, and the cover you select. Businesses in urban areas or with high customer turnover may pay more. Adding extras like key cover, courtesy car insurance, or business interruption will increase the price.
- Business size and turnover – Larger garages or those with many staff and high-value vehicles pay more.
- Type of vehicles serviced – Working on performance, luxury, or commercial vehicles can increase the cost.
- Premises security – Alarms, CCTV, and secure overnight storage help keep premiums lower.
- Location – Urban, high-traffic, or higher-crime areas usually mean higher prices.
- Number of staff and drivers – More people on the policy increases your risk and cost.
- Claims and convictions record – A clean history helps keep your costs down.
- Extras and add-ons – Each one adds to your premium, so choose only what you really need.
- Your voluntary excess – A higher excess can help lower your annual premium.
Comparing quotes for your garage, and reviewing cover each year, is the best way to get value from your insurance.
Ways to Save on Commercial Garage Insurance
You can reduce the cost of your commercial garage insurance by reviewing your drivers and cover regularly, upgrading your security, and only paying for the extras you truly need. Following FCA guidance to shop around each year can also help you get a better deal.
Even small changes can make a big difference to your bottom line—and help you stay competitive.
FAQs – Commercial Garage Insurance
What is commercial garage insurance?
Commercial garage insurance is specialist cover for businesses that service, repair, or store customer vehicles. It combines road risks, liability, premises, and tools cover, all in one tailored policy.
Is commercial garage insurance a legal requirement?
If you move, drive, or store customer vehicles—or employ any staff—specialist garage insurance is usually required by law, and always needed for peace of mind.
Who needs commercial garage insurance?
Any business maintaining or repairing vehicles at a fixed premises—whether you’re a small independent workshop, an MOT centre, or a franchised garage—needs commercial garage insurance to stay protected and legal.
What does a typical commercial garage insurance policy cover?
Most policies include road risks, public and employers’ liability, buildings and contents, business interruption, and customer vehicle cover. You can also add extras like goods in transit, key cover, or breakdown cover.
How do I get a quote for commercial garage insurance?
Prepare details of your services, premises, staff, security, and vehicle types, then compare quotes from specialist providers. Being thorough and honest helps avoid problems later on.
Can I get commercial garage insurance if I run an MOT station?
Yes MOT station insurance is available, just make sure your insurer knows about your MOT bays, the volume of tests, and any special risks like vehicle lifts or emissions testing.
How can I get cheaper commercial garage insurance?
Only cover the drivers, vehicles, and extras you need, improve your security, increase your excess, and compare the market at every renewal for the best deal.
