Running an automotive business in Canada—whether a dealership, repair shop, body shop, or specialty garage—comes with unique risks. Garage automobile insurance protects your business from financial losses caused by accidents, damage to customer vehicles, liability claims, theft, and other operational hazards. This guide explains what garage automobile insurance is, why it’s essential, and how to choose the right coverage.
Garage automobile insurance is a specialized policy for businesses that sell, service, store, repair, or park customer vehicles. Unlike standard commercial auto insurance, garage coverage addresses exposures related to vehicles under your care, custody, and control.
Auto dealerships (new & used)
Repair shops & mechanics
Body shops & collision centres
Detailers & car washes
Tire shops
Towing companies
Vehicle storage facilities
Covers bodily injury or property damage caused by your business operations. Examples include customer injuries in your shop or accidental damage to their property.
Protects customer vehicles while you repair, service, store, or test drive them.
Covers: theft, vandalism, fire, collision, and weather-related damage.
Covers non-auto-related risks such as personal injury, product liability, or advertising injury.
For businesses using company vehicles or employee-owned vehicles for business tasks.
Protects buildings, tools, equipment, inventory, computers, and office contents.
Covers lost income and expenses if your business must temporarily close after an insured loss.
Protects against theft, employee dishonesty, forgery, and fraud.
High-risk environment — test drives, repairs, and stored vehicles create liability exposures.
Legal requirements — some provinces require specific coverages for licensed automotive businesses.
Business continuity — one major claim could jeopardize your financial stability.
Standard commercial auto covers your vehicles.
Garage automobile insurance covers customer vehicles in your possession and activities like test drives, storage, and servicing.
Types of vehicles handled
Number of vehicles on-site
Security measures
Services offered (towing, repairs, detailing, storage)
Consider the value of all customer vehicles in your care at one time.
Some risks require endorsements, such as cyber incidents, floods, or high-value specialty vehicles.
Choose deductibles you can comfortably afford in a claim.
Install cameras, alarms, secure fencing
Train employees on safe vehicle handling
Maintain clear records of all customer vehicles
Bundle liability, property, and garage coverage for discounts
Review your policy annually
| Claim Type | Example Scenario | Prevention |
|---|---|---|
| Theft | Vehicle stolen from lot | Secure fencing, key control, cameras |
| Fire | Fire damages vehicles in shop | Fire suppression systems |
| Collision | Accident during test drive | Test drive procedures |
| Vandalism | Damage to vehicles overnight | Lighting, surveillance |
| Employee dishonesty | Staff theft | Background checks |
Choose an experienced broker
Gather business info (vehicles, security, claims history)
Explain all operations clearly
Compare quotes based on coverage—not just price
Personalized one-on-one service
No call centres—real brokers, fast replies
Specialized expertise in automotive industry risks
Custom coverage packages for all types of garages
Access to appraisers for custom, luxury, and vintage vehicles
Give your automotive business the protection it needs. Contact AIM Insurance for a customized garage automobile insurance quote.
📞 Call: 877-AIM-4TMW
🌐 Visit: theaim.ca
