Motor Trade Insurance

Motor Trade Insurance (or Traders Insurance) is a specialised type of cover for anyone running a motor trade business with the need to cover multiple vehicles.

If you buy, sell, repair, customise, collect, or deliver vehicles for a living, you legally need Motor Trade Insurance to keep your business covered, even if you work part-time or from home.

Yes – Motor Trade Insurance is a legal requirement for any type of motor trade business, even if you are home-based or only work part-time.

You could risk prosecution, heavy fines or even imprisonment without the required cover in place.

We can offer Motor Trade Insurance policies for a range of different motor trade businesses, including traders who are home-based or work part-time.

Getting a quote from us is easy, simply fill out our quote form or give our friendly team a call on 0333 015 6886 to get started.

Motor Trade Insurance is a specialised policy for businesses that buy, sell, valet, or repair vehicles. It can cover multiple cars, customer vehicles, and business liabilities, and is designed for professional use.

Regular car insurance is designed to cover personal vehicles for social, domestic, pleasure and commuting use and cannot cover business activities within the motor trade.

No, Motor Trade Insurance and business car insurance are not the same.

Motor Trade Insurance is a specialised type of cover designed for businesses that buy, sell, repair, customise, collect, or deliver vehicles.

Business car insurance is a regular car insurance policy that provides additional coverage for work-related driving.

Although both policies relate to business activities, motor trade businesses are legally required to be covered by a specialised Motor Trade Insurance policy.

If you’re running a Motor Trade business that sells, repairs, valets, recovers, or tests vehicles, you legally need Motor Trade Insurance to keep you covered.

Motor Trade Insurance provides you with peace of mind that your business:

• Is legally insured to operate.
• Will be covered for unexpected costs in the event of an accident or claim.
• Can continue to operate after an insured event.

Yes – Motor Trade Insurance is a legal requirement for every business in the motor trade.

Whether you’re trading from home or business premises, or working part-time or full-time, you’ll need to have a Motor Trade Insurance policy to keep you covered.

If you sell a few cars a month, including on marketplaces like Ebay or Facebook, you will need Motor Trade Insurance to be legally covered.

If you sell a small number of cars and find that you’re spending your profits on temporary insurance, a Road Risk policy could be a more cost-effective option for you.

We can help you find the best policy for your needs. Fill out the quote form or give us a call on 0333 015 6886, and a member of our team will be happy to help.

A Road Risk Only policy is a good option if you’re looking to work within the motor trade business in your spare time.

For example, if you’re a mechanic working in a dealership but fix your friend’s and family’s cars in your spare time, a Road Risk Only policy will legally cover you to do this.

Still not sure what kind of policy you need? We can help. Fill out the quote form or give us a call on 0333 015 6886, and one of our Motor Trade Insurance specialists will be in touch.

Depending on how you run your business, you may need to take out additional cover alongside your Motor Trade policy.

For example, if you have any employees then it's a legal requirement to have Employers Liability in place.

You also have the option to take out policies such as Public Liability, which will cover you or your employees in the event that your actions result in injury to a member of the public or damage to their property as a result of an accident not directly involving the insured vehicle.

Every motor trade business is different, so the cost of policies can vary widely from one trader to another.

It depends on a variety of factors, including:
• The nature of your business.
• Your age and claims history.
• Whether you trade from home or a business premises.
• If you employ any staff.

There are steps you can take to reduce your motor trade premiums, depending on your insurance provider.

These include:
• Securely storing your stock and equipment on your premises and implementing extra security measures.
• Building your no claims discount.
• Limiting the number of employees on your policy.
• Paying for your premium annually instead of monthly to avoid paying interest.

Trade plates are number plates used on vehicles for business activities like selling, repairing, or testing.

If you display trade licence plates on any vehicle, you, your employees and customers can drive the vehicle for specific purposes without needing to pay for registration and tax.

Motor traders, motor dealers, and vehicle testers are all eligible to apply for trade plates.
You can apply for a trade licence plate if your business:

• Sells vehicles
• Repairs or manufactures vehicles
• Tests other people’s vehicles on public roads

You may also be eligible if you collect or deliver vehicles, provided that this is the sole activity of your business, or if you also manufacture or repair vehicles in addition to collecting and delivering them.