Running an auto repair shop in Arkansas means handling more than just engines and oil changes—you’re also managing vehicles your business depends on. Whether it’s a tow truck, parts van, or mobile service rig, having the right commercial auto insurance is critical. Personal auto policies won’t cover business use, and that could leave your shop vulnerable when it matters most.
Commercial auto insurance protects your Arkansas auto shop’s vehicles from risks like accidents, theft, and costly liability claims. If you rely on service vans, tow trucks, or parts delivery vehicles, the right policy isn’t just helpful—it’s essential.
For shop owners juggling tight schedules and high repair costs, one uncovered accident can seriously disrupt operations. Wondering if coverage is required, or what happens without it? Let’s break it down and make sure your shop is protected.
What is Commercial Auto Insurance?
Commercial auto insurance is a type of policy designed specifically for vehicles used for business purposes. It covers the cars, trucks, vans, or tow rigs your Arkansas auto shop owns, leases, or uses regularly to serve customers or run your business.
Unlike personal auto insurance, which is meant for everyday, non-business driving, commercial auto insurance steps in when your vehicle is used on the job. Whether you’re delivering parts, hauling equipment, or offering mobile repair services, this policy protects you from financial losses tied to accidents, property damage, or liability claims.
The key difference? Personal auto insurance won’t cover business-related incidents. If one of your shop vehicles is in a wreck during a work errand and you only have a personal policy, well, that repair bill (and any legal fallout) could land squarely on your shoulders. Commercial coverage helps keep your business safe and running.
Do Auto Shop Owners in Arkansas Need Commercial Auto Insurance?
If your auto shop in Arkansas owns or operates vehicles for business purposes, then yes, commercial auto insurance is often legally required. According to Arkansas state law, any business-owned vehicle must carry at least the minimum liability coverage. This includes cars or trucks registered to your business or used regularly for work-related tasks.
But even if the vehicle is personally owned and not legally mandated to have commercial coverage, it’s still strongly recommended if you’re using it for business. Why? Because the second you pick up a customer’s part, deliver a vehicle, or take a test drive after a repair, you’ve crossed into commercial territory. Your personal auto policy likely won’t cover damages or liability in these scenarios.
Let’s look at a few examples:
- A mechanic test-drives a customer’s car and gets into an accident.
- Your tech uses a shop van to tow a client’s vehicle.
- You offer pick-up/drop-off services for customers.
Each of these situations exposes your business to risk. Without commercial auto insurance for auto shops in Arkansas, you could be stuck paying out of pocket—and that’s a hit no business wants to take.
What Does Commercial Auto Insurance Cover?
Commercial auto insurance for auto shops in Arkansas offers more than just a safety net—it’s a full-on shield for your business vehicles. Policies can be customized, but here are the most common types of coverage you’ll find:
- Liability Coverage – Covers bodily injury and property damage if you’re at fault in an accident. Required by law in Arkansas.
- Collision Coverage – Helps pay to repair or replace your vehicle after an accident, no matter who’s at fault.
- Comprehensive Coverage – Protects against non-collision events like theft, fire, vandalism, or hail damage.
- Uninsured/Underinsured Motorist Coverage – Covers your costs if you’re hit by someone without enough (or any) insurance.
This insurance applies to vehicles owned by your business, like shop trucks, parts delivery vans, or mobile repair vehicles. In some cases, you can also get coverage for employee-owned vehicles used for work through hired and non-owned auto (HNOA) coverage. That’s especially useful if your crew occasionally uses their cars for customer service calls or errands.
With so many ways things can go sideways, this type of auto shop business insurance helps keep surprises from turning into financial disasters. For more ways to protect your business assets and operations, check out our comprehensive Auto Services Insurance options.
What Happens If You Don’t Have It?
Skipping commercial auto insurance for your Arkansas auto shop might save you a few bucks upfront, but it can cost you big time in the long run. If you’re caught operating a business vehicle without proper coverage, you could face fines, license suspension, or even legal action, depending on the situation.
More importantly, if you or an employee gets into an accident while using a shop vehicle, and you’re uninsured? Your business is on the hook for repairs, medical bills, legal fees, and more. That kind of financial blow could stall your operations—or worse, shut you down.
And remember: personal auto insurance doesn’t apply to business use. So if you’re relying on that alone, you’re essentially driving without protection.
Bottom line: Arkansas auto repair insurance isn’t just a smart move—it’s a necessary one to keep your shop safe, legal, and ready to roll.
How Much Does Commercial Auto Insurance Cost in Arkansas?
When you’re running an auto shop in Arkansas, you might be wondering: “How much does commercial auto insurance cost?” On average, business owners in the state pay around $150 to $190 per month, which is roughly $1,800–$2,300 annually.
That range reflects a few key variables:
- Vehicle type & usage – A box truck or tow rig costs more than a small service van. Heavier, specialized vehicles mean heftier premiums.
- Driving history & employee records – Clean driving records save money; accidents or violations raise rates.
- Location & service area – Operating in busier cities like Little Rock typically costs more than rural zones due to higher accident risk
- Coverage levels & deductibles – Opting for higher liability limits or full coverage pushes premiums up, while increasing deductibles can lower costs.
For shop owners, expect $150–$300 per vehicle monthly, or $1,800–$3,600 annually, depending on your shop’s vehicle fleet and coverage needs.
How to Get Commercial Auto Insurance for Your Auto Shop
Getting commercial auto insurance for your auto shop in Arkansas doesn’t have to be a headache. In fact, with the right steps—and the right team—it can be surprisingly smooth.
Here’s how to get started:
- Gather your details – Have info ready on your vehicles, how they’re used, and who drives them.
- Assess your coverage needs – Think about liability limits, collision, comprehensive, and any extra protection you may want.
- Work with a local insurance expert – A trusted insurance agency (hey, like us!) can shop multiple companies on your behalf.
At G&G Independent Insurance, we compare quotes from over 50 insurers to find the best match for your auto shop. Whether you’re insuring one service van or a fleet of tow trucks, we make sure you’re covered, without the stress. Contact us today to get a free commercial auto insurance quote for your Arkansas auto shop.
Final Thoughts and Next Steps
Running an auto shop in Arkansas means you’ve got a lot to manage, but protecting your work vehicles shouldn’t be something you forget. Commercial auto insurance helps cover accidents, repairs, and legal costs, so one bad day doesn’t shut your business down.
Don’t wait until something goes wrong. Let G&G Independent Insurance help you find the right coverage at the right price. Get your free quote today and keep your shop running smoothly.
