Motor Trade Insurance
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Motor Trade Insurance
Running a motor trade business comes with a range of risks, whether you operate from a garage, work from home, or provide services at customers’ locations. From handling customer vehicles and driving them on the road to protecting your premises, tools and equipment, having appropriate insurance in place is an important part of managing your business.
Motor trade insurance is designed for businesses involved in buying, selling, repairing, servicing, maintaining or otherwise working with motor vehicles.
At 1st Choice Insurance, we can help arrange motor trade insurance for a wide range of automotive businesses. We work with a wide panel of UK insurers, helping you explore cover options that reflect your business activities, premises, vehicles and individual requirements.
Whether you’re a mobile mechanic, MOT garage, vehicle valeter, tyre fitter, used car dealer or another type of motor trader, our experienced team can help you understand the insurance options available.
Get a Motor Trade Insurance Quote
Every motor trade business operates differently, so the cover you need will depend on the work you carry out and how your business operates.
Our team can discuss your requirements and help you explore suitable motor trade insurance options.
Call us on 03301 081615Â or complete our quote form below to request a callback.
What is Motor Trade Insurance?
Motor trade insurance is a type of commercial insurance designed for businesses that work with motor vehicles as part of their trade.
Unlike standard private motor insurance, motor trade policies can be structured around business activities such as repairing, servicing, selling, buying, collecting or delivering vehicles.
Depending on your business, a motor trade insurance policy can include a combination of covers such as:
- Road risk insurance
- Public liability insurance
- Employers’ liability insurance
- Buildings and contents insurance
- Tools and equipment cover
- Stock cover
- Business interruption insurance
- Legal expenses cover
- Cover for customer vehicles
- Demonstration and sales vehicles, where applicable
The cover available will depend on your business activities, the insurer and the policy selected.
How Does Motor Trade Insurance Work?
Motor trade insurance can be arranged in different ways depending on the nature of your business.
The two main types of motor trade insurance are Road Risk Only and Motor Trade Combined.
Road Risk Only Insurance
Road risk insurance is designed for motor traders who need cover to drive vehicles in connection with their business.
Depending on the policy, this can include driving:
- Your own vehicles
- Customers’ vehicles
- Vehicles belonging to the business
- Vehicles being collected or delivered
- Vehicles being driven for testing or other authorised business purposes
The precise driving activities covered will depend on your policy, so it’s important to explain how vehicles are used when arranging insurance.
Motor Trade Combined Insurance
A Motor Trade Combined policy can bring together road risk with additional cover for your business premises and assets.
Depending on your requirements, this could include:
- Buildings
- Contents
- Tools and equipment
- Stock
- Public liability
- Employers’ liability
- Business interruption
- Road risk
This can be particularly relevant for businesses operating from a garage, workshop, dealership or other commercial premises.
Who Needs Motor Trade Insurance?
Motor trade insurance can be suitable for a wide range of automotive businesses.
This includes:
- Motor vehicle repair garages
- Mobile mechanics
- MOT stations
- Used car dealers
- Vehicle valeters
- Vehicle body shops
- Tyre fitters
- Exhaust centres
- Auto electricians
- Vehicle diagnostic businesses
- Vehicle remapping businesses
- Car dealerships
- Breakdown and recovery businesses
- Vehicle restoration businesses
- Window tinting businesses
- Car detailing businesses
- Motor traders operating from home
- Part-time motor traders
If your business involves buying, selling, repairing, servicing, testing, moving, or otherwise handling vehicles, you may need specialist motor trade insurance rather than standard motor insurance.
What Can Motor Trade Insurance Cover?
The cover available will vary depending on your business and the policy selected. Common options can include:
Road Risk Cover
Road risk insurance can cover vehicles being driven in connection with your motor trade activities.
This can be particularly important if you need to drive customer vehicles, vehicles you’re selling, vehicles being repaired, or other vehicles as part of your business.
Public Liability Insurance
Public liability insurance can protect your business against certain claims from members of the public involving injury or damage to property arising from your business activities.
For example, a customer could be injured while visiting your premises or their property could be accidentally damaged during work.
Employers’ Liability Insurance
If you employ staff, employers’ liability insurance is generally a legal requirement in the UK.
It provides protection against claims from employees who suffer an injury or illness as a result of their work.
Buildings and Contents Insurance
If you operate from a garage, workshop, dealership or other premises, buildings and contents insurance can help protect your business property against specified risks.
Contents cover can include business equipment, furniture, tools and other items belonging to your business.
Tools and Equipment Cover
Tools and specialist equipment can represent a significant investment for motor traders.
Tools and equipment cover can provide protection against specified risks such as theft, accidental damage or loss, depending on the policy.
Stock Cover
For businesses selling vehicles or holding parts and other stock, appropriate stock cover can help protect those assets against insured events.
Business Interruption Insurance
An unexpected insured event could prevent your business from operating normally.
Business interruption insurance can help protect your income and contribute towards certain additional costs following an insured event, subject to the policy terms.
Legal Expenses Cover
Legal expenses insurance can provide support with certain legal costs associated with specified business disputes and other covered circumstances.
Benefits of Motor Trade Insurance
Having suitable motor trade insurance in place can provide several practical benefits for your business.
Protection for Customer Vehicles
Motor traders often have responsibility for vehicles belonging to customers. Appropriate road risk and other relevant cover can help protect your business when handling or driving customer vehicles.
Cover for Your Business Premises
If you operate from a garage, workshop or dealership, additional cover can help protect your premises, contents, tools and equipment against specified risks.
Liability Protection
Public liability insurance can help protect your business against certain claims involving third-party injury or property damage.
Flexible Cover Options
Motor trade policies can be structured around different types of businesses, from small part-time traders and mobile mechanics to established garages and dealerships.
Support for Business Continuity
Additional cover such as business interruption insurance can help your business recover financially following certain insured events that disrupt your operations.
Motor Trade Insurance for Home-Based Businesses
Not every motor trader operates from a commercial garage.
Some businesses operate from home, including mobile mechanics, vehicle detailers, vehicle traders and other automotive specialists.
If you run a motor trade business from home, it’s important to tell your insurer about your business activities. Your standard home insurance is unlikely to provide the cover required for your motor trade activities.
Depending on how your business operates, you may need to consider:
- Road risk
- Public liability
- Tools and equipment
- Stock
- Customer vehicles
- Employers’ liability
- Business premises cover
Frequently Asked Questions About Motor Trade Insurance
What is motor trade insurance?
Motor trade insurance is commercial insurance designed for businesses involved in buying, selling, repairing, servicing, maintaining or otherwise working with motor vehicles.
Is motor trade insurance a legal requirement?
There isn’t one single motor trade insurance policy that every business is legally required to have. However, certain insurance requirements can apply depending on your circumstances. For example, motor vehicles used on public roads generally need appropriate motor insurance, and employers’ liability insurance is generally required if you employ staff.
Can I get motor trade insurance if I work from home?
Motor trade insurance can be arranged for some home-based businesses, including mobile mechanics and other automotive businesses. Your insurer will need to know about your business activities and where work is carried out.
Can I get motor trade insurance as a part-time trader?
Some insurers offer policies for part-time motor traders, subject to their underwriting criteria.
Does motor trade insurance cover customer vehicles?
Road risk cover can provide protection when driving customer vehicles for authorised business purposes. The exact cover depends on the policy, so you should explain how you handle and drive customer vehicles when requesting a quote.
Does motor trade insurance cover my tools?
Tools and equipment cover can often be added to a motor trade policy. This can help protect business tools against specified risks such as theft or accidental damage.
Can I insure more than one driver?
Depending on the policy, multiple drivers can often be included. The insurer will usually require details of the drivers and their use of the vehicles.
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