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Motor Trade Road Risks, Courier Insurance, Commercial Vehicle:

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What is motor trade insurance?

If you buy or sell vehicles, drive customers' vehicles, or take responsibility for them as part of your work, the law requires you to have a motor trade insurance policy.

Motor trade insurance covers anybody working in the trade, from part-time mechanics to car dealerships, service and repair garages through to body shops and classic car restoration.

Whether you work full-time or part-time, we can compare quotes from leading motor trade insurers for your business.

Get in touch for your personalised motor trade quote

What is included in motor trade insurance?

Road risks insurance

The minimum level of cover – road risks insurance – protects you against risks while driving vehicles on the road on a third-party, third-party fire and theft or comprehensive basis. These can be vehicles in your possession with a view to buying or selling them, or customer vehicles entrusted to you.

This works in the same way as private car insurance:

  • Third-party only – Covers third-party claims in the event of an accident, but provides no protection for the vehicle in your possession
  • Third-party fire and theft – Adds fire and theft cover for the vehicle to third-party only cover
  • Comprehensive – In addition to third-party fire and theft cover, also provides cover for the vehicle in your possession in the event of an accident. However, some policies will only pay the trade value of the vehicle rather than the market price.

A number of vehicles can be covered on one motor trade road risks policy, making it a convenient and simple way to insure your business.

Motor trade combined insurance

Motor trade combined packages bring together road risks insurance with a range of additional covers. These can include your business premises (e.g. a garage or showroom), cover for vehicles stored on those premises, tools and equipment stored on-site, and more.

Options include:

  • Buildings cover (whether you own or rent premises)
  • Employers’ liability and Public liability
  • Product liability
  • Material and equipment damage
  • Money cover
  • Tools cover
  • Additional drivers
  • Luxury vehicles

Choose the right level of cover carefully to ensure you are protected for all the activities you carry out in your business.

Who needs motor trade insurance?

Motor trade insurance policies cover all types of business, including:

  • Service and repair garages (including MOT stations)
  • Body shops
  • Mobile Mechanics
  • Breakdown & Recovery Operators
  • Vehicle Collection & Delivery
  • Many other businesses in the motor trade

What does motor trade insurance cover?

Traders’ insurance typically covers the named driver in the policy against losses relating to work in the motor trade. This includes road risks cover for incidents on highways and any third-party damage to public property. If you drive your own vehicle or other people’s vehicles as part of your business activity, the law requires you to have traders’ insurance.

The cover depends on your profession and duties. Cheap motor trade insurance is available for people working in repair disciplines, such as bodywork, servicing and MOT tests, while policy premiums are typically higher for more hazardous disciplines, including breakdown recovery, dismantling and salvage. The law only requires you to have the most basic type of motor trade insurance – a third party only road risks policy.

How much does motor trade insurance cost?

Like any car policy, the cost of motor trade insurance depends on several factors, including:

  • The level of cover
  • No-claims history
  • Voluntary excess
  • Risks you need to protect against

Using ChoiceQuote means being able to compare motor trade insurance quotes from a panel of the most experienced insurers. Whether you want a full traders combined policy or the cheapest possible road risks premium, we can find you the best value policies.

Can I get motor trade insurance for under 25s?

If you’re new to the motor trade or to driving in general, a young person motor trade policy can still give you the cover you need.

Premiums may be higher to reflect your lack of experience; however, we may still be able to help you in particular trades, especially in service and repair.

You can save money by working for somebody else in the trade first, building up experience, before striking out on your own.

Speak to us to find out more about how we can provide under 25 motor trade insurance.

Can I get part-time motor trade insurance?

If you work part-time in the motor trade, we can help you to get the right level of cover. Even if you only work in the motor trade occasionally, it’s essential to protect yourself against financial losses in the event of an accident.

Not all motor traders have a fixed place of business. Mobile mechanics may require road risks insurance and cover for tools in transit, for example. Tyre fitters may also be on the move. We can also help motor traders working from home to get a quote for cheap motor trade insurance.

What is covered with a dealership policy?

Dealership insurance policies cover vehicle stock you have on-premises against damage or theft. Your buildings, employees and members of the public visiting your site are also covered. This is combined with road risks insurance for vehicles in transit, used during test drives, and collection and deliveries. Combined motor trade insurance can give you all of this in a single policy, offering you the best value motor trade cover for your needs.

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Frequently asked questions

  1. Road risk vs combined motor trade insurance – what’s the difference?

    Road risks insurance is the minimum legal requirement for motor traders and is suited to smaller traders, mostly operating from home. This could protect you against losses arising from incidents on the public roads, such as collisions with other vehicles.Motor trade combined insurance protects you against road risks and includes cover for your business premises (rented or owned), damage to bodywork or theft of a vehicle, and theft of tools or money from your property.
  2. Can I cover my home address with motor trade insurance?

    Road risks insurance cover is available for individuals who work from a home address. If your business is based at a residential property, call ChoiceQuote. We can help you to understand if this is likely to affect your policy and the premium you pay.
  3. Can I transfer my no-claims discount?

    If you have a proven claim-free record on a previous motor trade insurance policy, you may qualify for a no-claims discount of up to 60%.You can either transfer your existing no-claims bonus or opt for a mirrored discount - even if your previous driving history was on an employer's motor trade policy and not in your name.And if you haven’t worked in the trade before, you can opt to transfer or mirror the no-claims discount from your private car/vehicle policy. Speak to us for details on how we can save you money. 
  4. What if I work part-time in the motor trade?

    Part-time motor trade professionals can still get appropriate insurance cover. We can help you to find the right motor trade policy, whether you're full-time, part-time, still in training, work from home or on a mobile basis.Please don't hesitate to get in touch for more information, whatever your circumstances may be.
  5. Can I add a named driver to my traders’ insurance policy?

    Yes, you can. However, the more named drivers you list on a motor trade insurance policy, the higher your premium will be.Try to restrict driving privileges to as few individuals as possible if you want to get the best value motor trade insurance. 
  6. Can I use motor trade insurance as a personal policy?

    Motor trade insurance cover is designed for people who work in the trade and need to drive customers' cars, e.g. for road testing or recovery purposes. It should not be used as a personal 'any car' insurance policy.If you need insurance to drive any car but you are not in the motor trade, we may still be able to find you the best cover.
  7. What’s the excess on motor trade insurance?

    The typical compulsory excess on a motor trade road risks policy is around £250. You can reduce your premium by paying a voluntary excess on motor trade insurance claims. Just make sure to calculate the best balance between upfront cost and voluntary excess, so you can cover any fees during a subsequent claim.

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