What Is Garage Insurance?
Garage insurance is a specialized commercial insurance policy designed for businesses that repair, service, sell, or store motor vehicles. In Ontario, it is the standard coverage required for auto repair shops, car dealerships, body shops, tire shops, oil change centres, and service stations.
A typical garage insurance policy in Ontario bundles several coverages into one package: garage liability (protects against third-party bodily injury and property damage claims), garagekeepers insurance (also known as OAP 4 — covers damage to customers' vehicles while in your care), commercial auto coverage (for business-owned vehicles like tow trucks and courtesy cars), and property & equipment protection (covers your building, tools, lifts, and parts inventory).
The cost of garage insurance in Ontario depends on your shop size, number of employees, services offered, claims history, and location. Small independent shops typically pay $2,000–$5,000 per year, while larger multi-bay operations or dealerships may pay $10,000+. Working with a licensed broker who can compare rates from multiple insurers is the best way to find competitive premiums.
Garage insurance is available throughout Ontario, including Toronto, Mississauga, Brampton, Markham, Scarborough, Richmond Hill, Hamilton, Ottawa, Kitchener, London, and Windsor.