Motor trade
Motor trade insurance: a complete guide for UK traders
What UK motor traders need to know about motor trade insurance: who needs it, road risks and combined cover, part-time trading and what affects the cost.
If you work in the motor trade, whether as a car dealer, mechanic, valeter or vehicle delivery driver, you will usually need motor trade insurance. Unlike personal car insurance, motor trade policies are built around the risks of working with lots of different vehicles that may not belong to you.
Who needs motor trade insurance?
You are likely to need motor trade insurance if you are involved in:
- buying and selling cars or other vehicles
- repairing or servicing vehicles
- valeting
- vehicle collection and delivery
- running a body shop or MOT centre
- salvage and vehicle breaking
Part-time traders who buy and sell vehicles for profit also need cover that reflects that trading.
Types of motor trade insurance cover
- Road risks only: lets you drive vehicles in the course of your trade, for example for test drives, collection and delivery. It does not cover premises or customer vehicles left with you.
- Combined motor trade insurance: bundles road risks with cover for premises, tools and equipment, liability and customer vehicles.
- Liability cover: public liability covers claims from customers or visitors injured on your premises. Employers' liability is a legal requirement for most businesses that employ staff.
What can be covered?
- Vehicle stock: your vehicles on the forecourt or in storage, against fire, theft and damage.
- Customer vehicles: vehicles left in your care for work.
- Premises and contents: your workshop, tools and equipment.
- Road risks: named drivers driving trade vehicles on public roads.
Part-time motor traders
Many insurers offer policies for part-time traders who buy and sell a limited number of vehicles each year. Be honest about your trading volume, as giving the wrong information can invalidate your policy.
What affects the cost?
Your premium depends on the type of trade, the number and age of drivers, the value of your vehicle stock, your claims history and your security measures.
Getting motor trade insurance quotes through Kompare
Kompare works with specialist motor trade brokers for road risks, combined policies and more. You fill in a short form and a specialist, FCA-authorised broker from our panel contacts you about quotes. Whether you are a mechanic, a dealer or a valeter, find out more about motor trade insurance or read how we work.