Motor trade insurance or 'motor traders combined' insurance is used by a wide range of businesses, both sole traders and limited companies, and usually by those who are involved in repairing or selling vehicles. Motor trade insurance commonly covers your employees whether they’re driving or simply working on customers cars. This type of cover can also include vehicles owned by the business itself.
However you deal with other people's cars, then you should heavily consider specialist motor trade insurance to cover you in the event of an accident or for driving other people's cars legally on the road under a motor trade road risks insurance policy.
Road risks motor trade insurance
Road risks insurance allows you and your staff to drive other’s vehicles in your possession; this is often used by mechanics, valeters, car salespeople or anyone who may need to move a customer’s car on the road. If you do not need to drive your customer’s vehicles on the road, you may only require parts-only cover.
Who needs motor trade insurance?
Any business that deals with cars, whether customer’s or their own, should consider motor trade insurance in some capacity. Common companies that require motor trade insurance include:
- Vehicle repair businesses
- Vehicle sales businesses
- Garages offering MOTs and servicing
- Mobile paint repair businesses
- Breakdown and recovery firms
- Vehicle delivery firms
- Scrapyards
- Specialist vehicle collectors and restorers
- Tyre fitters
- Vehicle repossession businesses
- Car valeters
- 'Smart' paint repairers
- Alloy wheel refurbishers
- Car detailers
Some businesses will have a greater need for motor trade insurance, such as car dealers, mechanics, body repair shops, breakdown recovery firms, valet parking services and car restorers. Whereas businesses like scrap yards and car valeting companies may not require cover but should consider the risks should they not have appropriate motor traders' cover.
If you operate your motor trade business from garage premises, please see our motor trade garage premises insurance page.
Why use motor trade insurance?
If you run a business in the motor trade and do not have basic insurance, then you could be breaking the law. When working with cars, claims against your business can be costly if you do not have the right cover. Whether you simply work on customers’ cars or have to drive to deliver them, unfortunate accidents can occur.
What does motor trade insurance cover?
Each motor trade insurance policy is tailored specifically for your business, but a motor trade policy might include:
- Accidental damage to a customer's car
- Defective workmanship
- Public liability
- Employer's liability
- Road Traffic Act cover
- Premises cover
- Breakdown cover
- Cover for driving in Europe
- Fire cover
- Personnel protection cover
- Personal accident and sickness cover
- Insurance for haulage and carriage of goods
- Business interruption insurance
- Additional drivers
- Trailer and towing cover
- Legal expenses cover
- Goods in transit cover
What isn't covered under a motor trade insurance policy?
Depending upon the type of your motor trade business, you'll need to check that your policy includes all the cover you need; common areas not covered by motor trade insurance include:
- Drivers without full, UK driving licences
- Drivers with certain motoring offences, including driving under the influence of drink or drugs
- Drivers with criminal convictions
How can QuoteRack help with motor trade insurance?
QuoteRack works closely with a network of specialist insurance brokers who can offer you access to specialised schemes offered by niche insurance companies looking to provide motor trade insurance.
Frequently asked motor trade insurance questions
Do I qualify for a motor trade insurance policy?
The most significant barrier to entry for acquiring motor trade insurance is age; most insurers will not cover anyone aged under 25. Some will bring this down to 23. Generally, the younger you are, the more expensive it is to insure your motor trade business. Drivers with criminal records or driving convictions also may struggle to get insured.
Is motor trade insurance expensive?
Your quote will depend entirely on your individual use case and situation; however, you can bring your quote down by:
- Avoid unnecessary additional cover
- Limit the number of vehicles you insure
- Consider a higher excess
- Only employ drivers with clean driving records
- Only hire drivers over 25
- Avoid vehicle modifications
- Pay your premiums annually
Ask QuoteRack to help with your motor trade insurance
If you are a motor trader and you are looking for traders insurance, QuoteRack's specialist insurance brokers will help you to find and compare quotes for your motor traders insurance policy - just hit the 'Get a Quote' link to complete your details online.