2024 Updated Guide to California Garage and Dealers’ Insurance

11 June 2024

Operating a garage or dealership in California comes with its own set of risks and liabilities. To safeguard your business against unforeseen circumstances, having the right insurance coverage in place is crucial.

What is California Garage and Dealers’ Insurance?

California Garage and Dealers’ Insurance is a specialized insurance coverage designed specifically for businesses involved in automotive-related operations. It provides protection against various risks and liabilities associated with running a garage or dealership, ensuring financial security and peace of mind for business owners.

Who needs California Garage and Dealers’ Insurance?

If you own or operate any of the following businesses in California, it is highly recommended to have California Garage and Dealers’ Insurance:

Auto Repair Shops: Whether you specialize in mechanical repairs, bodywork, or both, this insurance safeguards your business against potential claims arising from property damage, theft, or bodily injury.

Car Dealerships: Whether you sell new or used vehicles, having this insurance is essential to protect your inventory, premises, and liability exposures that may arise during test drives or other customer interactions.

Tire Shops: If your business involves selling and fitting tires, California Garage and Dealers’ Insurance can protect you from liability claims related to accidents caused by faulty installations or defective products.

How does California Garage and Dealers’ Insurance work?

California Garage and Dealers’ Insurance is typically tailored to the specific needs of each business, but it generally includes the following key coverages:

Garage Liability Insurance: Provides coverage for bodily injury, property damage, or personal injury arising from garage operations, such as customer accidents, faulty repairs, or negligence claims.

Garage Keepers Insurance: Covers damages to customers’ vehicles while they are in your care, custody, or control. This includes protection against theft, fire, vandalism, or other covered perils.

Property Insurance: Protects your physical assets, including the building, equipment, tools, and inventory, against risks such as fire, theft, or natural disasters.

Commercial Auto Insurance: Covers your business-owned vehicles and drivers against accidents, property damage, and bodily injury.

Workers’ Compensation Insurance: Provides coverage for medical expenses and lost wages if your employees are injured on the job.

How much does California Garage and Dealers’ Insurance cost?

The cost of California Garage and Dealers’ Insurance can vary depending on several factors, including the size of your business, the nature of your operations, your claims history, your location, and the coverage limits and deductibles you choose. It is best to consult an experienced insurance agent who can assess your specific needs and provide accurate quotes from different insurance carriers.

The recommended minimum liability coverage is:

  • $15,000 for injury/death to one person
  • $30,000 for injury/death to multiple people
  • $5,000 for property damage

Safeguarding your automotive business and personal vehicles through insurance is crucial to shield against unforeseen incidents and potential liabilities. With our tailored insurance solutions, including comprehensive car insurance options, you can have peace of mind knowing that your business and assets are safeguarded. To discuss your specific insurance needs or get a quote, reach out to Inszone Insurance today.


Steven Rivera - Inszone Insurance Commercial Lines Account Manager

Steven Rivera, QCLS

Commercial Insurance Specialist

Steven Rivera is a Commercial Insurance Specialist at Inszone Insurance Services, joining Inszone in May 2023. He graduated with a bachelor’s degree in marketing management from California Polytechnic University of Pomona, achieving Magna Cum Laude honors. Additionally, Steven has a notable achievement as a Boy Scout, where he attained the prestigious rank of Eagle Scout, the highest rank attainable in scouting. As part of this accomplishment, he completed a service project at the Jurupa Mountains Discovery Center in Jurupa Valley, which involved building a two and a half-raised garden. Over the course of three weekends and with the help of 33 volunteers, he invested 1,500 hours of work in completing the project, accomplishing it a month before his 18th birthday.

Although Steven is new to the insurance industry, he brings valuable customer service experience from his previous work in retail. He prioritizes customer satisfaction, understanding that happy customers are more likely to return. He believes that qualities such as diligence, strong work ethic, and a positive mindset contribute to creating a great customer experience.

In his free time, he enjoys going to the gym, creating memories with his friends, and cherishing moments with his family. The gym serves as his personal haven outside of work, where he strives to maintain his health and physical well-being. Creating memories with friends can involve various activities, from playing video games indoors to exploring new restaurants and culinary experiences. Lastly, spending quality time with his family holds immense value for Steven, as they are incredibly important to him, and he treasures every second shared with them.

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