Mechanics Insurance

What is mechanics insurance?

Mechanics insurance is a type of motor trade insurance that protects your business against the risks of working on customer vehicles. It can include road risk insurance for test drives and moving cars, liability cover for accidents in your workshop, and protection for your tools, stock and premises.

Because no two mechanic businesses are the same, the policy is tailored to how you operate. If you employ staff, work from commercial premises or handle expensive tools and stock, you will need different levels of cover to stay protected and legally compliant than a sole trader working from a van.

Who needs mechanics insurance?

Anyone who runs a business repairing, servicing or modifying vehicles needs mechanics insurance, whether you are a mobile mechanic, work from home or own a full-service garage. The right cover protects your tools, your customers' vehicles and your income.

This includes:

• Mobile mechanics
• MOT centres
• Performance tuning specialists
• Vehicle diagnostic technicians
• Part-time or sole trader mechanics
• Large repair garages with multiple employees

Working from a home garage does not remove the need for cover. If you carry out work on customer vehicles there, you still need road risk cover to drive them and public liability cover in case someone is injured on your premises.

What does a mechanics insurance policy include?

A mechanics insurance policy is built from several types of cover, and you choose the ones that match your business.

• Road risks – required if you drive customer cars, for example on test drives or to move them around the workshop.
• Public liability – covers injuries or damage to third parties, such as a customer hurt on your premises.
• Employer's liability – legally required if you hire staff.
• Tools and equipment cover – protects your tools from theft or damage, and can be extended to tools in transit for mobile mechanics.
• Garage premises cover – cover for fire, flood or break-ins at your premises.

If you drive customer vehicles, you also need to pick a level of road risk cover.

If you are only moving vehicles short distances, Third Party Only may be enough. If you test drive customer vehicles or work on more valuable cars, Comprehensive is usually the safer choice.

How much does mechanics insurance cost?

There is no single price for mechanics insurance because it depends on your business setup. The main factors insurers look at are:

• Whether you need road risk cover, and at what level
• Your claims history
• Where your business operates
• The value of tools or premises you want to insure

Experienced mechanics will typically see lower premiums, and part-time mechanics can often pay less than full-time businesses because they present a reduced level of risk. There are also practical ways to keep the cost down:

• Only include essential cover – don't pay for extras you don't need.
• Be selective with staff – younger drivers or those with convictions increase premiums.
• Pay annually if possible – monthly payments often include interest.
• Build a no-claims history – going claim-free can lead to discounts at future renewals.

The easiest way to get an accurate cost is to request quotes, with no pressure to proceed.

How do I compare mechanics insurance quotes?

Complete one short form with your business details and specialist motor trade insurers on a panel will contact you with quotes tailored to your mechanic business. You then compare the cover options and prices and choose the one that works for you.

Because the insurers specialise in the motor trade, they can advise on the level of road risk cover you need and quote for setups that general business insurers may not, including mobile mechanics, mechanics under 25 and businesses just starting out in the industry. Quote Goat provides access to this comparison service; it does not arrange or sell the insurance itself.