What Insurance Do Mobile Mechanics Need?

When your business is on the road, your vehicle and equipment are essential to your day-to-day work. Safeguarding them becomes all the more important.

Insuring your business is a crucial step to protect yourself from cost liabilities. You could be liable for anything from a car accident to property damage. A good insurance plan can protect your small business from financial risks that come with lawsuits and claims. 

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Mobile mechanic insurance might require thorough research, considering it is a niche in itself.  Here is what you need to know so that you can be on the road stress free.

What is mobile mechanic insurance?

You must always have insurance, whether you are full or part time, work from a garage or on the road. Mobile mechanic insurance is specifically designed for mechanics who do not operate from a brick and mortar location. Your business is the kind that provides a service to clients at their homes and workplaces. 

This insurance for mobile mechanics will provide coverage for vehicles you drive, as well as those of your clients , employer’s liability, and equipment coverage for fixed and mobile machinery.

The policy should cover machinery, tools, but more crucially must cover your customers’ cars while you test and diagnose them.

Here is a list of what your insurance should cover:

If you are new to the game, do involve a broker before making any final purchases. Terminology, paperwork and everything in between can prove confusing and lead to sign-up mistakes. 

Types of insurance

Road risks insurance

As a self employed mobile mechanic, this insurance is an absolute must. Accidents are inevitable, no matter how good a driver you are. You need this coverage for yourself and for your clients as well. 

While your customer’s vehicle is in your care, a road risk policy ensures you meet the minimum insurance requirements while the vehicle is with you. 

Here is what a road risk policy covers:

  1. Named driver

  2. The policyholder’s (or named driver’s) vehicle

  3. The customer’s vehicle while it is in your care (motor trade use only)

Liability insurance

Liability insurance is another consideration for any mobile mechanic. If an accident were to happen (and they most likely will in this business), you won’t be held responsible. Liability insurance will help ensure a mobile mechanic has the means to defend or settle a claim made against them.

Here is what liability insurance for mobile mechanics can cover:

  1. Defense costs associated with claims made against the mechanic

  2. Employer’s liability (this is compulsory in the majority of cases if you have employees) 

  3. Hand tools (highly recommended for mobile mechanics)

Types of liability coverage include:

  1. Public liability coverage – This covers expenses that may come up with a vehicle under your responsibility, that may not even have been your fault.

  2. Liability claims coverage – This will provide coverage for more generic claims made against you.

Comprehensive coverage

Having comprehensive coverage will ensure security over any vehicle you work on. Working on as many vehicles as you will, you are at a higher risk of incurring losses. 

This coverage helps you work stress free, without having to constantly plan for the unknown. 

The great thing about this coverage is it covers your vehicle as well.

Third party, fire and theft coverage

This covers you in case you have an accident and the third party is liable. Simultaneously, it also covers for fire, damage and theft. These things can happen with a client vehicle, which is why you need this protection as a mobile mechanic.

This way, you will be covered without having to break the bank.

Breakdown coverage

Getting breakdown coverage is important so that your work can continue. This is guaranteed assistance in the event that your vehicle stops working. After all, your entire business depends on its dependable performance.

Legal expenses coverage

If you were to have any liability claims made against, you need to be able to cover the legal expenses. This type of insurance will cover any lawful costs in cases. 

This kind of coverage is crucial when you are in court defending yourself.

Mobile mechanic tool insurance coverage

Most of the tools you acquire for your business will be costly. If something were to happen to them, you need protection. 

How much does mobile mechanic insurance cost?

Costs can vary depending on how big your business is, your personal circumstances and the unique needs of your business. For this reason, an average cost is hard to determine.

However, here are some of the factors that determine cost: 

1) Age

If you are under the age of 25, you might have to pay more than an older, more experienced driver. The younger you are, the more the liability.

2) Claims history

If you have a bit of a reputation as far as claims go, your premium will cost more.

3) The type of coverage

Depending on the kind of plan you choose and how much it covers, it could become more expensive. A comprehensive level of coverage will cost more.

4) Your vehicle and equipment

Depending on the value of your vehicle and how reliable it is, your coverage cost could change. For example, having a secure garage to park your vehicle with all the tools would work in your favor over working from an open parking lot. 

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Wrapping up

Insurance may not cover everything in your business. But it can protect you from the most likely issues that would potentially leave you liable. 

Consider these different types of insurance coverage and protect your mobile business as it grows. 

General liability coverage is the most common type of insurance you will need as a mechanic.

General liability insurance will help protect your auto repair business from any setbacks caused by bodily harm or damage to your property or a customer’s property. 

A mobile mechanic is someone who offers general repair services at a customer’s home or workplace. This means they do not work from one physical location.

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