Mechanic Insurance
Mechanics are essential to the UK automotive industry, repairing and maintaining millions of vehicles yearly. From customer cars to expensive tools and staff safety, mechanic insurance provides vital protection against the unique risks garages face.
Why Mechanic Insurance Matters
Legal Compliance
Required insurance for driving customer vehicles on public roads during testing or collection.
Tool Protection
Cover for expensive diagnostic equipment, specialist tools, and workshop machinery.
Liability Cover
Protection against claims from accidents, injuries, or defective repairs.
Customer Trust
Peace of mind for customers entrusting their vehicles to your care.
Legal Framework
Several UK laws govern insurance requirements for mechanics and garages:
Road Traffic Act 1988
Requires insurance for any vehicle driven on public roads, including customer cars moved by mechanics for testing.
Employers' Liability Act 1969
Garages with staff must carry employers' liability cover—a legal requirement with minimum £5 million cover.
Health and Safety at Work Act 1974
Obligates garages to manage workplace risks and maintain safe working environments.
Consumer Rights Act 2015
Makes garages liable for defective services—professional indemnity cover protects against such claims.
Types of Cover
Road Risk Cover
Allows mechanics to legally drive customer vehicles for testing, collection, or delivery. Available at third-party, TPFT, or comprehensive levels.
Combined Garage Insurance
Comprehensive package covering road risks, premises, tools, equipment, stock, and liability. Ideal for established workshops.
Tool & Equipment Cover
Protects against theft or damage to specialist tools and diagnostic equipment. Can be extended for mobile mechanics.
Employers' Liability
Legally required if you employ staff. Covers claims from employees injured at work, including apprentices.
Public Liability
Covers injury or damage to customers or third parties on your premises. Essential for all customer-facing garages.
Professional Indemnity
Protects against claims arising from faulty repairs, negligent advice, or workmanship that causes damage.
Who Needs Mechanic Insurance?
Independent Garages
Franchise Centres
Mobile Mechanics
Body Shops
Tyre Fitters
MOT Centres
Case Studies
Tool Theft Recovery
A small independent garage suffered a break-in with £20,000 worth of specialist tools stolen. Their tool insurance enabled full recovery without crippling financial losses, allowing them to continue trading within days.
Faulty Brake Repair Claim
A franchise workshop faced a liability claim after a faulty brake repair contributed to an accident. Their professional indemnity cover handled the legal costs and compensation, protecting the business from financial ruin.
Mobile Mechanic Oil Spill
A mobile mechanic accidentally damaged a customer's driveway with an oil spill during an engine service. Public liability insurance covered the professional clean-up costs and customer compensation.
Pitfalls to Avoid
Personal Insurance Assumption
Never assume personal car insurance covers driving customer vehicles—it doesn't.
Undeclared Staff
Failing to declare all employees or apprentices can invalidate your policy.
Undervalued Tools
Underestimating tool values leads to inadequate payouts after theft or damage.
Ignoring Liability Risks
Faulty repairs can lead to accidents—professional indemnity is essential.
Prevention Strategies
Regular risk assessments—identify and address potential hazards.
Careful vehicle handling—maintain customer cars carefully during testing.
Verify staff credentials—check qualifications and driving licences.
Service contracts—use disclaimers and clear terms with customers.
Security measures—install CCTV, alarms, and secure tool storage.
Fire prevention—implement fire and spill prevention systems.
Frequently Asked Questions
Can mechanics use private insurance for test drives?
No. Specialist road risk cover is required to drive customer vehicles on public roads legally.
Are tools automatically covered?
No. Tools and equipment must be insured separately or as part of a combined garage policy.
What about apprentices?
They must be included in your employers' liability cover. Failure to declare them can invalidate your policy.
Can mobile mechanics get insured?
Yes. Policies are available combining road risk cover with portable tool protection for mobile operations.
Are MOT centres covered?
Yes. Combined policies can be tailored specifically for MOT testing facilities.
Does insurance cover warranty disputes?
Usually not. Warranty disputes may require separate cover or specific policy extensions.
Related Guides
Explore more business insurance options for the motor trade.