GarageKeepers Insurance

[jarred767]

So I'm in the process of getting some stuff nailed down for the new shop and looking into insurance. I've read a ton on here and got some good info from different threads. I narrowed my search down to StateFarm (a ton of guys on here seem to use them) and American Family Insurance (my old insurance company). I've never had a garage keepers policy since I've always been mobile, so thought I'd see if I could get some opinions from the pros on here who have experience in this department.

Here's my two preliminary attached quotes I believe things are relatively the same from both except that the actual garage keepers is $60,000 on the StateFarm policy and $100,000 on AmFam (I would probably up the $60,000 so I'd assume my premium would go up to). I'm perplexed that there's such a difference between the two quotes (especially since the AmFam quote has more GK's coverage and is the cheaper option).

Premium on AmFam is $483 a year
Premium on StateFarm is $875 a year

Are there any benefits that I'm missing on the StateFarm policy, it's seems like a no-brainer to me, but $483 a year also sounds very low, so I feel like something could be missing in there. I'm also toying around with the idea of offering tire/wheel storage for customers since the shop is larger than I need right now (but the smallest in my area) and that is covered in the AmFam Quote, but StateFarm won't insure that. Any advice would be awesome! thanks guys.

Hopefully those are large enough to be readable.

 

[Dmb5450]

I cannot answer your original question, but want to add some of my experiences. I had Westfield car insurance, and paid less than Erie, my current insurance. I had Westfield since I started driving 16-23 and in that time never needed to use them for a claim. I was rear ended on a bridge and during the insurance process I found that Westfield was useless. I didn't even go through them, just statefarm (the other drivers insurance) Westfield would not return my calls, and did not provide any help. I finally was able to get medical bills taken care of after a lot of stress. I was told by Westfield that I needed to send forms in to have hospital bills paid, I mailed everything in their pre-addressed envelops. I got all bills and forms returned with a big stamp from USPS saying not a valid address. Fed up, I just waited for insurance to contact me. A week later they called and said my bills have been paid. They never received my bills. I asked the woman if she got my envelop with all my forms and bills, she responded yes, they are in front of me now. They were certainly not they were returned to sender and in front of me. After that I decided to pay a little more but get good business. I now get an actual agent with almost no wait time and my calls are returned. I have been with Erie from age 23-24(current age) yes I have paid more with Erie but have saved stress and time doing so. My point; sometimes paying more for the same insurance isn't always a bad thing if you ever need to use it. If you never make a claim then obvious it's a loss. I hope that was somewhat helpful or relevant to your situation.

 

[jarred767]

Thanks, that is helpful, although both quotes are with local agents with local offices that I can go in and speak to directly if need be (something I wanted to be sure was an option) so that part is wash. Thanks for the advice though!

 

[Dmb5450]

No problem, just trying to help save other from my logic, pay less just because it's less money. With insurance I learned you get what you pay for. Good luck with your original post, I wish I could help.

 

[glisten]

I'm currently in the process of figuring this out for myself. If I learn anything of interest I'll respond.

 

[Mike lambert]

What type of cars do you do? We have a 1 million dollar policy because we do a lot of exotics. It is very expensive but we need that much. We also get a rider when we have cars here that are worth more than that. I would do at least 150k to be safe, but your agent should be able to help with that

 

[Legacykid]

subbed

 

[DeansDetailing]

Have you asked StateFarm and the other company how they are so different in price? I'd go into the Statefarm office and the other office and just tell them you are considering both...what are the practical differences?

Make Statefarm sell you on why they are much more expensive.

Another thought is to go to a few different auto businesses in the area especially shops near yours and ask who they use and if they've heard any pros/cons about the companies. Good way to get some potential referrals too. Auto repair, Rim/Tire shops, etc...

CONGRATS on the shop!!! I hope you stay busy!

 

[Real Riders]

What type of cars do you do? We have a 1 million dollar policy because we do a lot of exotics. It is very expensive but we need that much. We also get a rider when we have cars here that are worth more than that. I would do at least 150k to be safe, but your agent should be able to help with that

Mike I heard that insurance does not cover workmanship such as burning paint or dropping a buffer on the hood. It basically does not cover any damage due to faulty workmanship

 

[SKorch630]

Mike I heard that insurance does not cover workmanship such as burning paint or dropping a buffer on the hood. It basically does not cover any damage due to faulty workmanship

You are correct. " It does not cover damage that occurs from faulty workmanship or parts or insufficient warranties."

 

[jarred767]

Have you asked StateFarm and the other company how they are so different in price? I'd go into the Statefarm office and the other office and just tell them you are considering both...what are the practical differences?

Make Statefarm sell you on why they are much more expensive.

Another thought is to go to a few different auto businesses in the area especially shops near yours and ask who they use and if they've heard any pros/cons about the companies. Good way to get some potential referrals too. Auto repair, Rim/Tire shops, etc...

CONGRATS on the shop!!! I hope you stay busy!

Thanks, that's good advice. I will definitely take this advice and try to use it to really see the differences. I should be signing my lease by late this week/early next week, and then after that's official, I can get really serious about these quotes and get one nailed down.

What type of cars do you do? We have a 1 million dollar policy because we do a lot of exotics. It is very expensive but we need that much. We also get a rider when we have cars here that are worth more than that. I would do at least 150k to be safe, but your agent should be able to help with that

Not really any exotics here in town (I live in a mountain town of 80,000 in Central Oregon). Most expensive cars here are probably a few Teslas or something random. I might see about bumping it up to $150,000 but that's probably more than what I would probably need. Thanks for the advice!

I can't wait to get all this paperwork stuff done so I can get my focus back on growing the business and detailing cars