Motor trade

Motor trade insurance in brief

A quick overview of motor trade insurance for dealers, garages, mechanics and recovery firms, and the main types of cover a policy can include.

Motor trade insurance is a type of policy designed for businesses in the motor trade. That includes car dealers, garages, mechanics and vehicle recovery firms, as well as smaller part-time traders. A policy covers a range of risks that come with running a motor trade business.

What motor trade insurance can cover

Road risks

This covers the trader driving their own trade vehicles, and customers' vehicles, on public roads in connection with the business.

Public liability

This covers the business if someone is injured, or third party property is damaged, while you are carrying out motor trade work.

Premises

This covers the business premises, including the building, tools, equipment and stock.

Product liability

This covers the business if a product or service it provides causes injury or damage to a customer or to someone else's property.

Employers' liability

This covers the business if an employee is injured while working for it. Most businesses with employees are required by law to hold employers' liability insurance, as gov.uk explains.

Choosing the right cover

The type and level of cover you need depends on the work you do. A part-time trader buying and selling a few cars from home may only need road risks, while a garage with a workshop, staff and customers' cars on site will usually look at a combined policy that brings road risks, premises and liability together.

It is worth thinking carefully about the options and comparing policies on the same level of cover, rather than on price alone.

You can find out more on our motor trade insurance page. You fill in a short form and a specialist broker from our panel contacts you about cover.