Mechanic Insurance

Mechanic Insurance or Motor Trade Insurance is a specialised type of business insurance designed to protect Auto Repair businesses and their owners from the various risks they face via insurance covers such as Commercial Property Insurance, Public Liability Insurance, Business Interruption Insurance, Customer’s Vehicle Insurance and so on. Ideal Insurance Brokers can provide tailored coverage to ensure your Auto Shop’s success and longevity:

Mechanics & Auto Repair Business in Australia

Mechanics play a vital role in our society and economy; they offer a place where people can turn to – to keep their vehicles running smoothly and reliably. From daily private drivers to businesses and even emergency services, without mechanics Australia quite literally stops moving.

The Pros of Owning an Auto Repair Shop


  1. Demand:
    Due to the high volume of vehicles on our roads, there is a constant need for automative repairs and maintenance.
  2. Customer Loyalty:
    It is incredibly easy for Mechanics to build lifetime relationships and a loyal customer base by simply being reliable, honest, trustworthy and maintaining a high level of customer service.
  3. Choice of Field:
    Auto Repair Shop owners have the freedom to choose the field they wish to practice, whether it be a certain type of vehicle or a specific type of work.
  4. Stability:
    The need for Mechanics and Auto Repair Shops have always been of importance – Australia requires mandatory inspections and services of vehicles to ensure their safety, compliance and reliability.

Challenges in the Auto Shop Business

Running an Auto Repair Shop can be a rewarding experience, but it also comes with its own set of challenges:

  1. Competition:
    The Automotive Repair Industry is highly competitive, and many Auto Repair Shops can reside in the same region. It can be difficult to convert customers once they become loyal to an Auto Repair Shop.
  2. Compliance:
    Ensuring to consistently meet and maintain compliance in line with state and federal regulation, such as environmental standards, workplace health and safety regulations, and licensing requirements.
  3. Skilled Staff:
    Finding and retaining skilled mechanics and technicians can be difficult, especially in regions with shortage of qualified automotive professionals.
  4. Technological Advancement:
    Keeping up to date with rapid advancements in automotive technology requires ongoing training and investment in diagnostic tools and equipment.

Essential Insurances for Auto Repair Mechanics

Given these challenges, having the right insurance coverage is crucial for protecting your business. Here are the key types of insurance that every Auto Repair Shop owner should consider:

1. Public Liability Insurance (PL Insurance)

This covers legal costs and compensation payments if a customer or third party suffers injury or property damage due to your business activities. A cover crucial for businesses who allow customers or visitors onto their premises.

2. Commercial Property Insurance

Protects your workshop, tools, equipment, and stock against damage or loss from events such as fire, theft, or vandalism.

3. Business Interruption Insurance (BI Insurance)

Provides financial protection coverage for lost income and ongoing expenses if your business is temporarily closed or unable to operate due to an insured event (e.g., fire, natural disaster). It helps cover lost revenue and ongoing expenses during the closure period.

4. Customer’s Vehicle Insurance

This covers customer’s vehicles left in your business’s care for repair or servicing against damage or loss. This is crucial if a vehicle is damaged whilst in your possession.

Best Auto Repair Shop Insurance

Ideal Insurance Brokers can help you tailor your insurance policies to adequately protect your business. Get a Tailored Auto Repair Shop Insurance Quote Today!

See how much your Auto Repair Shop Insurance could cost you today: