Garage insurance is a complicated policy and often misunderstood. To fully understand the wide coverage of this policy we have to keep in mind the areas where it is issued. For instance following are the area where policy may be issued-

1. One man filling station;

2.  Automobile dealer, whether the smallest or largest in the country;

3.  Farm equipment dealer, regardless of size;

4.  Any automobile repair shop, whether only a paint shop, a body repair shop, a motor repair shop, a brake repair specialist, or a fully equipped repair shop;

5.  And all storage garages and public parking places.

Here we can see that all businesses that deal with automobile or farm equipment are covered by this policy.

To add to the above discussion it must be made clear that garage insurance does not only cover automobiles and the premises but also the content and tools in it. It also covers workers compensation with regards to employee injuries. The broad liability insuring agreement provides bodily injury coverage. The liability insuring agreement for garage operations other than covered autos promises to pay all sums an insured legally must pay for damages because of bodily injury or property damage caused by an accident and resulting from garage operations involving the ownership, maintenance or use of covered autos.

The limit of insurance under the physical damage coverage is the smaller of the actual cash value of the damaged or stolen property at the time of the loss or the cost to repair or replace the property with property of like kind and quality. One should take time to look at the policy carefully and review it for each line of coverage to make sure that they are appropriate for the work one does. If help is needed with this process, then one must consult an agent that specializes in businesses needing garage policy. This protection is very important and should be carefully dealt with.

The policy has an annual aggregate limit for garage operations other than covered autos and an each accident limit which applies to both auto claims and other than auto claims. Some insurers offer discounts for no Claims in Past 3 Years. Also for experienced business owners and individuals with good driving records. To sum it up ,the garage policy combines coverage for auto liability, commercial general liability, and physical damage coverage`s in one policy.