Auto Service Insurance Programs in Chicago Illinois

by Aya Mus, Auto Services Insurance Expert, Chicago Illinois

The auto service industry is composed of businesses that offer products and services to repair or maintain vehicles.  Examples of businesses included in this industry are: Auto Repair Shops, Auto Services Stations, Auto Equipment Installation, Auto Glass Installation, Auto Body Shops, Gas Stations, Car Washes, Quick Lube Shops, Tire Dealers, Convenience Stores With Gasoline Sales, and many more.

Market for Auto Services Businesses Insurance is Unique

The Chicago area market is unique in the way the  industry is diversified and the different risk levels attributed to the classes of businesses in this industry.  The size and diversity of the market makes make it attractive to many auto service insurance companies in Chicago Illinois to offer a variety of choices to the potential customers, from basic coverages to very expanded coverages, and at different rates. The State of Illinois imposes certain requirements for businesses that want to obtain licenses for many classes of the auto service industry.

Insurance coverages for the auto services industry includes garage liability (including premises and auto liability), garagekeepers liability, property coverage such as building or business property, scheduled auto, and other coverages such as crime, signs, business interruption and more.
Repair body shop insurance

Types & Quality of Insurance Plans for Auto Service Programs

Type and quality of insurance plans for auto service programs range from basic monoline insurance, commercial package policy and expanded business owners policy. Preferred, standard and non standard insurance companies may offer a variety of coverage. Most non standard carriers will provide only basic garage liability coverage at low or medium level of liability, in addition to some garagekeepers insurance. Other companies may offer additional property and auto  coverages but at a higher price on a commercial packaged policy programs.

The highest quality insurance for auto service businesses come with business owner policies. A business owner policy, as opposed to commercial policy package, offers more coverage at, in most cases, lower insurance rates. Business owner policies for the insurance for auto service businesses in the Chicago area may come with some restrictions such as:
  • Chicago insurance rates for auto service businesses are higher than suburban rates.
  •  Many companies offering BOP for auto service businesses may exclude certain high risk auto service businesses such as: Classic Cars, Bus, Heavy Trucks Repair Shops, Repo  or Towing For Hire Businesses, Sales and Installation of Farm Equipment or Motorcycle or RVs, or any other business that sponsor racing. Also, other companies may not offer a BOP for tire recapping, certain tire storage, businesses with certain dogs, or businesses with snowplowing operations.
  • Almost all the above classes that do not qualify for a BOP may qualify for a commercial package policy, that may have higher price tag if all coverage in the BOP are included.

Workers Compensation for Auto Services Businesses

An important coverage that is overlooked by many auto service businesses is workers compensation. Workers compensation insurance in Illinois is mandatory for all businesses, including the auto service businesses.  Unlike what many business owners think, the rates for Illinois workers compensation insurance for auto service businesses is based on the total annual payroll, not the number of employees.

Affordable Insurance for Auto Services Businesses

For auto service businesses in Illinois finding a business insurance policy may be a challenging task. But there is no doubt that shopping for the right policy may save the business owner hundreds if not thousands of dollars. Dealing with a specialized and experienced independent agent is key factor in finding the best coverage for the lowest price.
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