Motor Trade Insurance: A Complete Guide for UK Traders

If you work in the motor trade whether as a car dealer, mechanic, valeter, or vehicle delivery driver you need motor trade insurance. Unlike personal car insurance, motor trade policies cover the unique risks of people who work with multiple vehicles that do not belong to them.

Who Needs Motor Trade Insurance?

You need motor trade insurance if you are involved in buying and selling cars, repairing or servicing vehicles, valeting, vehicle delivery, operating a body shop or MOT centre, or salvage and vehicle breaking. Even part-time traders who buy and sell vehicles for profit need appropriate cover.

Types of Motor Trade Insurance Cover

Road Risks Only: Allows you to drive vehicles in the course of your trade for test drives, collection and delivery. Does not cover premises or customer vehicles. Combined Motor Trade Insurance: Bundles road risks with premises cover, tools and equipment, employer liability, public liability, and customer vehicles. Liability Cover: Public liability covers claims from customers injured on your premises. Employer liability is a legal requirement if you have employees.

What is Covered?

Vehicle stock: Covers your vehicles on the forecourt against fire, theft, and damage. Customer vehicles: Covers vehicles left in your care for repairs. Premises and contents: Covers your workshop, tools, and equipment. Road risks: Allows named drivers to drive trade vehicles on public roads.

Part-Time Motor Traders

Many insurers offer policies for part-time traders who buy and sell a limited number of vehicles per year. Be honest about your trading volume as misrepresentation can invalidate your policy.

What Affects the Cost?

Type of trade, number of drivers, value of vehicle stock, claims history, and security measures all affect your premium.

How to Compare Motor Trade Insurance

At Kompare, we work with UK specialist motor trade brokers for road risks, combined policies, and more. Whether you are a mechanic, a vehicle dealer, or a valeter, we can connect you with the right cover.