If you have a car or commercial vehicle business, Motor Trade Insurance is ideal for ensuring that you have protection against a wide range of risks. With a choice of Road Risks only or Combined cover, you can tailor your policy to protect you, your employees, your business’ vehicles and those owned by your customers.

  • Tailor your Motor Trade Insurance to suit your unique needs.
  • Opt for Road Risks only or Combined cover.
  • Choice of Third Party only, Third Party, Fire and Theft, or Comprehensive Motor Insurance.
  • From sole traders to national garages.
  • Specialist cover available for self drive hire, recovery and engineering inspections.
  • A-rated insurers.
What is a Motor Trade Insurance policy?

A Motor Trade Insurance policy is cover that is specifically designed to protect vehicle orientated businesses. Whether you buy cars and sell them on, carry out repairs or modifications, or you’re a mobile mechanic, this insurance can be tailored to suit you.

At its most basic, a policy can provide Road Risk cover only, in order to meet the legal requirement to insure your own or customers’ vehicles on the road.

But if your motor business is more complex or you want the reassurance of further cover, this can be extended to a Combined Motor Trade Insurance. What is included is really dependent on the nature of your business. For instance, it can be extended to feature Commercial Property Insurance, Public & Products Liability Insurance, Employers’ Liability Insurance, and Engineering Inspection cover, among others.

Do I need Motor Trade Insurance?

Motor Trade Insurance is designed to offer protection to many motor businesses. This includes:

  • Vehicle dealerships
  • Service and MOT garages
  • Body shops
  • Mobile mechanics
  • Recovery agents
  • Vehicle repairers

If you are working on vehicles that are not your own, you need to have Motor Trade Insurance for Road Risks in place. This is a legal requirement if you drive them. You should also consider Public & Products Liability, which can protect you against claims arising from defective workmanship (e.g. a brake failure).

If you have employees, it is also a legal requirement for you to have Employers’ Liability Insurance in place. This can be included in a Combined Motor Trade Insurance policy.

Does Motor Trade Insurance mean I can drive any car?

No, it doesn’t.

When you take out a Motor  Trade Insurance, you will need to tell your insurer or broker what types of car you will be driving. Some policies will exclude certain types of vehicles, such as high-performance cars or HGVs. It’s therefore important that you check any exclusions before you buy your policy. 

Insurers also tend to impose restrictions on certain types of vehicles for younger or inexperienced employees when it comes to allowing them personal use rather than just business use of vehicles. 

What types of Motor Trade Insurance are available?

There are two main types of Motor Trade Insurance. The first is Road Risks only and the second is Combined cover.

Road Risks only: This type of cover will protect you to drive vehicles that are in your custody. It can be extended to include other named drivers. For this type of policy, you can choose from Third Party only, Third Party, Fire and Theft, or Comprehensive cover.

Combined: This is a more tailored policy for Motor Trade Insurance. In addition to Road Risks, it can also be extended to include Commercial Property Insurance, Public Liability Insurance, Employers’ Liability Insurance, Test Drive cover and Product Liability Insurance.

At One Broker, we can also include more specialist covers in your Motor Trade Insurance. For instance, cover for self drive hire, recovery or engineering inspections. 

Is Motor Trade Insurance mandatory?

If you drive owned or customer vehicles in your custody, or employ anyone in connection with your Motor Trade business, then yes.

This is a legal requirement and it ensures that the cars under your care or custody are protected when you drive them. You will need this cover even if you only take a car for a quick test drive down the road. 

This cover can be Third Party Only, but it can also be extended to Fire and Theft or fully Comprehensive.

If you employ anyone within your business, even as a volunteer or apprentice, you will also need Employers’ Liability by statute, which protects against injury in the workplace. This can be added to a Combined Motor Trade policy.

How much is Motor Trade Insurance?

The cost of Motor Trade Insurance will depend on several factors. 

These include:

  • The type and number of vehicles you have under your care (including the business’ own vehicles).
  • How often you will need to drive your customers’ cars.
  • The number of drivers you need to cover, their age, driving experience and history.
  • The nature of your business (types of vehicle in stock/worked upon, the extent of services provided, etc.)

The cost of Motor Trade Insurance will also be influenced by the level of cover you choose and whether you opt for Road Risks Only or Combined Insurance.

To get a Motor Trade Insurance quote tailored to your vehicle business, speak to our experienced team. 

Get a Motor Trade Insurance quote

Speak to our team about Motor Trade Insurance on 01953 850459 or request a call back.