The auto repair shop insurance market is growing as repair businesses face higher operating costs and increased exposure to liability.
A report from Market.us estimates the global auto repair shop insurance market is valued at about US$842.5 million in 2024. It is projected to reach US$2.83 billion by 2034, representing a compound annual growth rate of about 12.9 percent over the period.
North America accounts for more than 32 percent of global revenue. The report cites rising vehicle repair costs and increased claims severity as key factors supporting growth in the region, including Canada.
In Canada, auto repair shop insurance is typically arranged through insurance brokers. Policies are structured to cover risks associated with operating a repair facility, including third-party injury or property damage, damage to customer vehicles, loss of tools and equipment and business interruption following insured events.
Common coverage types include garage liability, garage keepers liability, commercial property insurance and business interruption insurance. Shops that operate business vehicles also require commercial auto coverage. Workers’ compensation coverage is provided through provincial systems.
“Running an auto repair shop means customers trust you with one of their most valuable assets,” Marco De Bruyn said, according to an article published by Zensurance in October. “Protecting your business, reputation and financial well-being hinges on having the right insurance coverage that addresses the unique risks your shop faces.”
Several brokers and insurers operate in the Canadian auto repair shop insurance market. Zensurance places coverage through multiple underwriters. Federated Insurance provides commercial insurance products for automotive businesses. National broker BrokerLink and regional firms including Able Insurance and Leibel Insurance Group also offer garage-related coverage.
According to industry sources cited by Market.us, demand for specialized insurance products is expected to continue as repair costs and liability exposures remain elevated across the sector.
