What Is My Garage Insurance Rated On?

As a dealer you know you are required, in most states, to carrier a Garage Liability policy. While there are a few key differences, this policy generally acts as an auto policy but for your business. It is meant to cover you and your employees in the event of an at fault accident and just like personal auto, liability will always cover damages to the other individual not yourself.

You may notice the constant rise of insurance rates and wonder, “Why is my rate going up every year?” Well, in this article we are going to go over some of the many factors Garage Carriers use when determining their rates and how this may affect your premium. Some common and important factors Garage Policies are rated on include location, claim history, number of employees, Driving record, your operations, your credit or risk score, experience, vehicle or repair costs, and obviously requested coverages. These are not listed in order of importance as they are all typically weighed equaling depending on the potential insured.

Let’s take a little bit deeper dive into a few of these…


Location is a very important factor to consider. Densely populated areas typically draw higher premiums. More people in a specific area creates a higher probability of claims. Therefore, the carriers typically rate accordingly. If you plan on changing locations or you are just getting in business contact your agent and get some ballparks on premiums before you make a final decision. You will be surprised how drastic rates can change.

Employees and Driving Record

This one may seem a little more obvious however many people don’t realize what some of their employees driving records look like. If an individual is working for your business and driving cars they should be listed on your insurance. If anyone listed on your policy has major tickets or violations this can cause a dramatic increase in your policy premium. We have noticed that a number of dealers will pull MVR’s before they officially hire someone and ad them to their insurance. This is never a bad idea! You don’t want a reckless driver in a car you’re trying to sell.

Claim History

Another obvious one. If you have had any recent claims that will impact your quote greatly. Stuff happens and you never know when it will, however the cleaner your claim history is the better off you will be!

Vehicle Cost and Repair Costs

This factor is commonly thought of in regards to personal auto but not garage. The rising costs for vehicles and repairs play a major role in the rising prices of insurance. There are cars that are being sold at almost double what they were valued at a few years ago. This mean if there is a claim the insurance company is potentially paying out almost double then what they would have a few years ago.

I hope this article gave you some insight into how your insurance is rated. Remember to leave your comments down below and check us out on Facebook!

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