Mobile mechanics are frequently the ones who save stranded motorists and passengers. Also, a mobile mechanic makes life convenient for people who don’t have the time to leave their car at a garage by traveling to meet them at their place of work or residence. This can be a huge help to people who are constantly on the go.
But as a mobile mechanic, it is essential to have insurance that covers you to drive customers’ vehicles as well as your own vehicle, your tools while they are in transit, and your liabilities for employees or members of the general public, regardless of how you conduct your business.
This is one of the benefits offered by mobile mechanic insurance. However, before purchasing insurance for a mobile mechanic, you should consider a few factors. Running an auto repair business or becoming a mobile mechanic is not easy and it’s critical to get the right insurance plan.
What Is Mobile Mechanic Insurance?
Starting a mobile mechanic business or just generally operating in the auto repair industry can be tricky. The nature of work at auto repair shops is prone to accidents and losses, which makes auto repair shop insurance very important.
An auto repair shop insurance gives your auto repair business the necessary coverage needed to dodge hefty losses. Similarly, just like auto repair shop insurance, a mobile mechanic needs mobile mechanic insurance.
The insurance policy known as “Mobile Mechanic Insurance” is tailored specifically to the needs of mechanics who do not conduct their business from a single site or workshop but rather travel to the homes and places of business of their customers.
If you are a mobile mechanic who runs your business out of a van, you really must have proper coverage irrespective of the mobile mechanic insurance cost.
The auto mechanic insurance policies cover every aspect of risk, including the cars you drive as well as those of customers, public and employers’ liability (which is required by law if you have staff), and equipment coverage for both mobile and fixed machines and tools.
Anyone who works in this industry should have the appropriate auto mechanic insurance policy, regardless of whether they do so on a full- or part-time basis, whether they conduct their business from their own house or even from a garage.
The liability insurance policy ought to be able to cover machines and tools, but more crucially, it should cover the fact that you will be driving clients’ vehicles in order to test and diagnose them.
It is essential to keep in mind that in the event of an accident in which you are driving either your own vehicle or a customer’s vehicle, your insurance company will only pay out enough money to cover the costs incurred by the third party, leaving you responsible for all of the costs alone.
When you are just beginning your career as a mobile technician, navigating the many policies and terminology can be challenging and at times even intimidating.
Prior to making any final purchases, it is strongly suggested that you have a conversation with your broker who provides mechanic shop insurance about all of the available possibilities.
Getting mobile mechanic insurance will also protect you against loss and make you more competitive against other mobile mechanics in the industry.
What Should Insurance For Mobile Mechanic Cover?
Top auto repair shops in your area have usually always invested in different types of insurance including general liability insurance and commercial property insurance. However, as mobile mechanics, you need to know which liability claims coverage you are getting and what things will be included in it.
Due to the fact that each mechanic is unique, the types of coverage provided by insurance can likewise vary. When considering an insurance policy, the following factors are vitally important to keep in mind:
- Insurance that covers customers’ vehicles for when you need to test drive them
- The possibility of being taken to court because of the employment that you do.
- The total value of the commodities, plant, machinery, stock, and portable hand tools that are stored in your van.
- Including your own van as a covered vehicle under a motor trade road risks insurance policy
Ideally, all mobile mechanics should aim to get auto mechanic insurance that covers these factors.
Types of Insurance Available For Mobile Mechanics
There are different types of liability insurance available in the market and as a mobile mechanic, you should ensure that you get adequate insurance coverage.
Here are a few types of mechanic insurance that you can get:
1. Road Risks Insurance
It is imperative that you have insurance, not only for yourself but also for your clients, as accidents are something that can never be completely eliminated.
Road Risks Insurance is an imperative necessity for a mobile mechanic who does not have a permanent location for their business.
Since it is a given that you will have a customer’s vehicle in your care on a daily basis, purchasing a Road Risks policy is the best way to ensure that you are in compliance with the legal requirements for liability insurance when the vehicle is in your care.
A Road Risks policy will cover the following:
- Only named drivers are allowed.
- Vehicles that either the policyholder or the policyholder’s spouse own, provided that the spouse is a named driver on the policy. (The policyholder must own either a limited company or a limited partnership, and the cars must be registered in the name of the limited company or limited partnership.)
- Customers’ vehicles or cars that belong to other people while they are under your care and control (motor trade use only).
2. Liability Insurance
In addition to the risks posed by the road, any mobile mechanic should also give some thought to purchasing liability insurance. Accidents are always a possibility, and you should always be prepared to take responsibility for your actions.
A liability policy from Road Runner will help ensure that all mobile mechanics have the financial resources necessary to defend themselves or their businesses in the event that they are sued.
Many different things can be covered by liability insurance, including products, the general public, defense costs associated with claims made against the mechanic, as well as employer’s liability. Road Runner also offers coverage for portable hand tools, which are highly recommended for mobile mechanics and can be purchased as an add-on option.
Vehicle Leasing and Mobile Mechanic Insurance
As a mobile mechanic, your vehicle isn’t just your mode of transportation – it’s your mobile workshop. Therefore, having the right vehicle for your business needs is crucial. One option you might consider is leasing a vehicle.
Leasing a vehicle can have several advantages for a mobile mechanic. It allows you to use a newer, reliable vehicle without the hefty upfront costs of buying. Regular maintenance costs are often included in the lease agreement, which can make budgeting easier.
Plus, you can upgrade to a newer model when the lease ends, ensuring your mobile workshop stays up-to-date with the latest features.
However, leasing a vehicle also brings unique insurance considerations. The leasing company will typically require you to carry a certain level of insurance coverage to protect their investment in the vehicle. This often includes comprehensive and collision coverage, and the required liability insurance limits may be higher than the state minimums.
In addition, gap insurance becomes even more relevant when you’re leasing a vehicle. If your leased vehicle is totaled in an accident or stolen, your auto insurance will typically cover only the current market value of the vehicle.
But if you owe more on your lease, you’ll be responsible for the difference – unless you have gap insurance. Many lease agreements actually require gap insurance, so it’s important to check the terms of your lease.
When considering leasing a vehicle for your mobile mechanic business, it’s crucial to factor in these insurance requirements. They will affect your overall costs and should be included in your decision-making process.
Why Should You Bear Mobile Mechanic Insurance Cost?
Getting liability insurance or mechanic insurance means that you need to do a quick cost-benefit analysis to judge its feasibility. Some types of business insurance can be super helpful and also provide legal expenses coverage. Public liability coverage also covers expenses incurred for vehicles while under your responsibility.
However, different insurance companies might charge differently for comprehensive coverage. To see if insurance for your auto repair shop or mobile mechanic business is a feasible decision, you should explore the benefits.
Due to the fact that it is required by law, it is important for all mobile mechanics to have at least some level of motor trade insurance. The minimum amount of insurance that is required by law is intended to compensate third parties for any harm that may be caused to them in the event of an accident.