What is vehicle sales insurance?

Vehicle sales insurance is designed for traders who sell new or used vehicles, either from home or from a premises.

Do I need vehicle sales insurance?

If you run a business that sells or trades vehicles, you need insurance, whether you work part time or full time. A trade policy can cover things like loss of stock and damage to your premises or vehicles.

What will my vehicle sales policy cover?

Every business is different, but a typical policy can include garage stock cover for loss of or damage to vehicles, road risks for when you drive your stock, contents cover for your buildings, public liability if a member of the public has an accident on your premises, and employers' liability, which is generally a legal requirement if you employ staff.

Motor trade

Vehicle sales insurance

What vehicle sales insurance is, who needs it and the two main types of cover for motor traders selling cars, vans and bikes from home or a premises.

Vehicle sales insurance is an important part of running a vehicle trading business. Some traders sell the odd car on the side and others trade full time, but everyone who buys and sells vehicles needs the right insurance in place.

Kompare helps traders find specialist cover. You fill in a short form and a specialist FCA-authorised broker from our panel contacts you to talk through your needs and quotes. You can read more on our motor trade insurance page or see how we work.

Who is vehicle sales insurance for?

Vehicle sales cover is used by a wide range of traders, including:

car and van dealers
classic vehicle sellers
import specialists
performance vehicle sellers
motorcycle and scooter dealers

When you deal with valuable vehicles and look after customers, staff and visitors, the right cover matters. Without it, you could find that you're personally and financially responsible if something goes wrong on your premises or on the road.

A vehicle sales policy can cover traders working from home or from a dedicated premises, and can protect against damage, theft, loss and injury, depending on the cover you choose.

What are the different policy types?

When you take out vehicle sales insurance, you'll usually choose between two levels of cover.

Road risks

Road risks cover the vehicles in your possession when they're on the road. This helps in situations such as taking a customer on a test drive, or collecting and returning a vehicle.

Road risks and premises cover

A combined policy is designed for traders who run their business from a premises. It's also worth considering if you employ staff, keep stock or store vehicles overnight. Combined policies can also include cover for your buildings, contents and liabilities.

Not sure which policy you need?

If you're unsure which type of cover suits your business, get in touch and we can help with any questions. The broker who contacts you can also explain the options before you decide.

Other motor trade roles

Many roles in the motor trade overlap, so a single policy can often be shaped around what you actually do. If you also repair, valet, deliver or recover vehicles, mention it when you fill in the form so the broker can take it into account. Our motor trade insurance page covers the full range of trades.

If you employ staff, you can read more about the law on employers' liability cover on GOV.UK.