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Motor Trade Insurance

A motor trade insurance policy is needed by anyone who runs a motor trade business. Whether you are selling cars & other vehicles or are into car repairs & servicing, you may need to count on your insurance cover. This form of insurance would also be useful for those involved in valeting or a MOT centre or a garage as well as covering those working part time or full time.

Third party only

This is the most basic policy you can have and it could cover damage caused to a 3rd party car vehicle. You may require it if you

  • Service, restore or repair vehicles
  • You work as vehicle fitter or valet or mobile tuner
  • Run a garage or MOT center
  • Sell or buy cars for profit
  • Drive your own car or customer's car on public roadway & have any of them on business premises or at the home address of the customer.

Depending on the policy, any driver named on this policy is allowed to drive the vehicles you are working with & may be covered for any damage to other party's car.

3rd party fire & Theft

This motor trade insurance policy offers cover for the above along with the added benefit of cover for theft and fire. This is for the vehicles under the control of a motor trader.


This is the most extensive level of motor trade insurance cover with This is the highest level of motor trade insurance cover. This level of cover includes all the benefits mentioned in the first two points and can also include accidental damage coverage for any vehicle that is under control of a motor trader.

To help explain, we have the following example. Let's say you are out test driving your customer's vehicle before purchasing it & you somehow end up causing an accident. If you have taken a comprehensive motor trade insurance cover, your insurer may help take care of the cost of repairs to be done on the customer's car.

Motor Trade Insurance

Motor trade liability insurance cover

Motor Trade can cover employer's liability, public liability as well as sales & service indemnity coverage. With the employer's liability coverage, you can be protected in case any of your staff members gets injured while working for you. Public liability insurance can often help take care of the compensation costs on your behalf in case anybody is harmed or any property is damaged from your business activities. The sales and service indemnity coverage would protect you in case you have to pay the compensation for any accidental damage or injury to a property given – purchase or sale of vehicles, supply or sale of products linked to your motor trade as well as alteration, inspection, maintenance, testing, repair, cleaning or servicing of vehicles.

Combined insurance

A combined motor trade insurance policy often covers money, premises, vehicles, tools, contents & liabilities. In fact, if you are looking for cover for your entire business a combined cover policy could be the answer for you. These policies often even apply to those motor traders who operate from home.

insured service garage

Factors to consider while taking the insurance

There are different factors to consider while you are going for your motor trade insurance policy.

Review business activities

You must understand that the major aspects of your motor trade- like number of cars and other vehicles, the drivers, turnover & general business operations- all have a huge impact when underwriters are deciding the insurance premium. Before you finalise your insurance deal, you might want to consider these factors thoroughly.

Among all the factors mentioned, your vehicles and drivers are the most important.

  • Vehicles - The different types of vehicles involved in your motor trade influence the insurance premiums. The motor traders who work with high performance vehicles, HGVs, imported wheels, kit cars & motorcycles are generally charged higher premiums. If you stop working with these sorts of high profile vehicles in the future, you should inform your insurance providers.
  • Drivers - The number of drivers you are planning to include in your policy will also determine the cost of your premiums. Some insurance companies often prefer mature drivers with safe driving records and would readily extend lower rates if your drivers pose less risk. You might be charged higher premiums if you have drivers below 25 years of age.

Premium payment method

Another major factor that could affect your motor trade insurance policy is your payment method. Some insurance providers impose a charge if you decide to pay via monthly installments. If you can afford to pay for premiums upfront, you may save money.

Motor Trade Insurance |
Product Lowest Price Highest Price Customer Rating
Motor Trade Insurance | £492.18 £3123.1 4.24 / 5

Pricing claim generated from smallest and largest base premiums of policies sold from 1st January 2018 to 31st December 2019 from one of our partners.

Customer product rating is based on 132 reviews from a range of 1 to 5, where 5 being the best.