Business Insurance
Garage Keepers Insurance
Garage keepers insurance protects auto dealers, repair shops, and parking facilities from liability when a customer's vehicle is damaged or stolen while in their possession.
Last reviewed: May 2026 · Editorial methodology
Definition
Garage keepers insurance (also called garagekeepers liability) covers physical damage to non-owned vehicles that a business has accepted for storage, service, or repair — situations where the business has care, custody, and control of the customer's property. Auto repair shops, dealerships with service departments, parking garages, and valet services all require this coverage. A typical auto repair shop with a capacity of 10–20 vehicles might pay $1,500–$4,000/year for garage keepers coverage. The policy covers fire, theft, vandalism, and collision damage to customer vehicles on the premises; without it, a shop whose lot floods or catches fire could face hundreds of thousands of dollars in claims from vehicle owners. Garage keepers can be written on a direct primary basis — paying regardless of fault — or a legal liability basis, which pays only when the shop is negligent. Most customers and their insurers expect direct primary coverage, so shops should avoid the legal liability form despite its lower premium.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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