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.

Where this term matters

Business Insurance →/business/commercial-auto →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Commercial Auto InsuranceCommercial auto insurance covers vehicles owned or regularly used by a business, providing liability protection and physical damage coverage that personal auto policies explicitly exclude for business use.General Liability InsuranceGeneral liability insurance is the foundational business policy covering lawsuits from customers, vendors, or bystanders injured on your premises or by your operations.Inland Marine InsuranceInland marine insurance fills gaps in commercial property coverage by insuring property that moves, is stored off-site, or requires specialized valuation.
Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

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 June 2026

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