The car wash business is very lucrative, and the profit margins are high, but it also comes with its fair share of risks. Imagine washing off mud from a car when suddenly the side mirror falls off or you accidentally scratch the car’s paint with your brush while trying to wash the tires. Whether you are worried about unintentional damages, theft, or other mishaps, car wash insurance is the protection you need from these unforeseen events.
To a layperson, running a car wash sounds simple. You just need a water supply, car cleaning soap, clothes, and a tire brush. As long as you can make the cars sparkle, you are good to go. Right?
Quite frankly, if you are in the car wash business, you know that there is more to it than just cleaning the body and tires of a car. When your clients drop off their cars and hand over the keys to you, they are entrusting you with the responsibility of securing their car.
This means if anything should happen to these cars while in your custody, you could face huge financial damages. The only saving grace in this situation is if you have proper insurance.
Hence, whether you run an auto detailing service or a car wash business, car wash insurance isn’t just a great idea; IT IS A NECESSITY!
This article will guide you on everything you need to know about car wash insurance and auto detailing insurance.
What is car detailing business insurance?
Car detailing insurance is a specialised type of insurance that protects auto detailers from the risks associated with the business. These risks include property damage, accidents, injuries, and bodily harm to clients. All of which can wreck the auto detailer financially.
What is car wash liability insurance?
Car wash insurance is a type of insurance that protects car wash business owners against different risks that could arise from washing people’s cars. As a car business owner with insurance, you have the peace of mind and assurance knowing that whatever mishap may happen in your shop, your insurance will cover it, and you won’t need to worry.
Does Car Wash Business Insurance differ from Auto Detailing Insurance?
Yes. Car wash business insurance slightly differs from auto detailing insurance.
Both insurance packages may seem very similar because the services from both businesses focus on cleaning and maintaining vehicles. However, there are slight differences in the services they offer.
These key differences influence the type of insurance coverage suitable for both, as it must address the specific needs of the service.
Car wash businesses solely focus on the basic cleaning of cars. This includes washing the exteriors, waxing, tire cleaning, and regular dirt removal.
On the other hand, auto detailing requires a more intensive, specialised, and in-depth cleaning process. This requires cleaning both the exteriors and interiors of the car, paint correction, restoring the quality and state of the upholstery, AC vent cleaning, engine bay cleaning, ceramic coating, and more intricate tasks.
While auto detailing offers a more intensive cleaning process, it also opens up the cleaner to a lot of risks, as they are prone to using specialised equipment and products on your car in sensitive areas, which, if not handled properly, will damage the car.
An auto detailing service will require a more comprehensive insurance policy than a car wash business, especially to cover equipment breakdowns, product liability, and even damage to a customer’s vehicle. Car wash businesses can settle for just general liability and workers’ compensation.
Types of Insurance for Car Wash Business and Auto Detailing
Here are the six major types of insurance for car wash businesses and auto detailing services:
General Liability Insurance
General liability is a type of insurance that offers protection against claims from bodily injuries, property damage, and even slips and falls. This type of retailer’s insurance protects your establishment against allegations or legal action if a customer is injured in your facility, their property is damaged, or they fall because of the wet floors.
Garage Keepers Insurance
This type of insurance protects all the vehicles that you are washing or working on while they are still in your custody. With the garage keeper’s insurance coverage, you are protected from auto theft, fire outbreak, vandalism, or whatever damage that can occur to the car while it is still in care.
You need garage keepers’ insurance, especially if you have a car wash shop. Although this insurance coverage is not necessary for mobile car wash and detailing services, you can opt for the policy if your service requires that you transport the vehicles of your clients.
Property Insurance
With property insurance, your business is protected from any potential damage. The potential risks that property insurance covers include equipment damage, fire outbreaks, vandalism, natural disasters, etc.
Workers’ Compensation
This covers the medical expenses and lost wages of staff who were injured while working.
Business Interruption
If there is a natural disaster or unforeseen event that threatens to stop your business operation, the business interruption coverage helps you replace the lost income and any expenses that may arise from temporarily shutting down.
Pollution Liability Insurance
Depending on where your car wash and auto detailing shop is located and the type of detergent and cleaning agent that you use, you might need pollution liability insurance. The pollution liability insurance covers the environmental damages that the improper use or disposal of your chemicals and cleaning agents may cause.
Other Types of Car Wash Business Insurance
Mobile car wash insurance is just like regular car wash insurance, except for the fact that it is for car wash companies that do not have a shop. This unique type of insurance is usually cheaper than the others because it does not require any coverage for commercial property. This means there is no need for the business owner to insure a building or incur damages that could arise from clients getting injured in their fixed locations.
If your car wash business is similar, then you can focus only on essential coverage like general liability, pollution liability, property insurance, and workers’ compensation
Get car wash and auto detailing insurance coverage starting from $12/mo now.
Car wash insurance cost
The cost of car wash insurance varies based on different factors. However, you should expect the cost of your car wash or auto-detailing business insurance to fall within the range of $400-$3000.
| Type of Insurance Coverage | Average Annual Cost | Factors Affecting Cost |
| General Liability Insurance | $400 – $1,500 | Business size, location, claims history |
| Property Insurance | $500 – $1,500 | Property value, coverage limits, claims history |
| Workers’ Compensation | $300 – $1,500 | Number of employees, state regulations, risk level |
| Pollution Liability Insurance | $500 – $1,500 | Type of chemicals used, location, environmental risk |
| Business Owner’s Policy (Interruption Coverage) | $400 – $1,500 | Revenue dependency, type of disruptions covered, location |
| Garage Keepers Insurance | $800 – $3,000 | Numbers of cars in custody, location, security level of the area |
Best car wash insurance companies
Depending on where you are located, there are lots of good car wash insurance companies near you.
However, here is a list of the six best car wash insurance companies:
- Next Insurance
- Allied Insurance
- Geico
- JMG Insurance Corp
- The Allen Thomas Group
- State Farm Insurance
FAQs
Is mobile car wash insurance more affordable than regular car wash insurance?
Yes. Mobile car wash insurance is more affordable than regular car wash insurance because you wouldn’t need to insure a building. The coverage for mobile car wash insurance is reduced because there are fewer risks to cater for.
Does car wash insurance cover damage caused by employees?
Yes. Your car wash insurance covers damages caused by your employees. If an employee damages a vehicle due to negligence or poor handling, your insurance will handle the rising cost of damages.
CONCLUSION
Car wash and auto detailing insurance isn’t just an important investment but a necessary one. It protects your business from the unknowns and ensures that arising damages are well taken care of.
To get the most from car wash insurance, you need to discuss with an expert to decide the exact insurance policy that will work for your business.
Barter Insurance provides car wash and auto detailing insurance quotes you can trust!
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