Who needs motor trade insurance?
In short, anyone who is involved in the motor trade in any capacity from buying and selling to mending or cleaning requires the appropriate level of motor trade insurance to protect both themselves and their customer in the event of an issue. It doesn’t matter what sort of premises you have or what hours you work any individual who works in any motor-associated jobs should ensure they have cover in place.
Motor trade insurance is essential for any business involved in working with vehicles, whether you’re:
- Buying and selling vehicles
- Repairing and servicing
- Valeting and cleaning
- Moving or transporting vehicles
- Fitting parts and accessories
This specialised insurance is required regardless of:
- Your business size
- Working hours (full-time or part-time)
- Business location (home-based or commercial premises)
- Number of employees
What Is a motor trade insurance policy?
Motor trade insurance is there to cover you, and your staff, to look after all the vehicles that are under the care of your business. You can put specific drivers on your policy, or use ‘any driver’ options to cover anyone in your business to drive without being specifically named on the policy. It’s very important to note though, that even if you have ‘any driver’ cover, you may still need to notify an insurer of certain named drivers. Please check with your insurance provider directly, or read your policy documentation, to know when this is necessary.
Your motor traders’ insurance policy can also cover you for more than just business needs. You can get cover for social, domestic and pleasure purposes too. But it’s important to understand that traders’ insurance is not an ‘any vehicle’ insurance policy for all your personal vehicles. The vehicles you own outside of your business should still have their own private motor insurance. Motor trade insurance covers your business’ needs, and it shouldn’t be used to get cover for vehicle uses outside of that. This is specialist insurance for genuine businesses working within the motor trade industry.
Who needs business motor trade insurance?
The term motor trade insurance or traders insurance is the name given to the category of insurance policy the is recommended for those individuals who work in the motor industry.
This includes, but is not limited to:
- Traders (buying/selling vehicles for profit)
- Mechanics (mobile and garage-based)
- Valeters (vehicle cleaning)
- Car jockeys (vehicle relocation)
- Vehicle recovery agents
- Accessory fitting
- Mechanical repair
- Vehicle electrician
- Body repairs
- Import/export
- Breakdown/recovery
- MOT preparation/testing
- Vehicle sales
- Vehicle demonstrations
- Vehicle servicing
- Car detailing
- Tyre fitting/sales
- Vehicle collection/delivery
- Windscreen repair
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Your options in motor trade insurance
This is the meat and potatoes of your motor trade insurance policy. You need to know how your policy covers your business, and the choices you have to extend your insurance cover. Breaking it down, these are the options available for you:
What the experts say…
" Specialist insurers are more familiar with the specific needs and risks associated with your business, and may be able to offer more tailored coverage at a competitive price."
– Ian Beevis, Founder of Clean Green Compare
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Additional cover options for your motor trade business
Your motor trade insurance may include some extras as part of the standard package, while others might come at an additional cost or may not be available from your insurance provider at all.The cover you need depends on your business type, so it’s worth reviewing your options carefully. Make sure you’re not paying for extras that you don’t need or are already covered under another policy.
Here are some of the optional extras that may be available with a motor trade insurance policy:
Ready to get covered?
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Money saving tips for your motor trade insurance
Now, for the juicy part. You want to know how to save yourself some extra cash when taking out a traders’ insurance policy. Well, you’re already on our website, so you’ve made a good start!
But as well as using Clean Green Compare, there are other ways to help save you money:
Businesses that need motor trade insurance
Motor Trade Insurance FAQs
What is the Motor Insurance Database
Opting for a higher level of cover means you can protect both your own vehicles and those belonging to your customers, giving you peace of mind against risks that may arise while driving on public roads. This type of policy also gives you the ability to add and remove vehicles from the Motor Insurance Database (MID), helping you to ensure you’re always compliant with legal requirements.
Am I eligible for motor traders insurance?
To be eligible for motor traders insurance, you must:
- Hold a full UK driver’s licence
- Be at least 23 years old
- Prove you work in the motor trade
Can I get cover for my motor trade premises?
Yes, combined policies can include cover for your premises, tools, stock, and cash.
How do I get trade plates?
You can apply for trade plates through the DVLA.
What information do I need to provide to take out a motor trade policy?
You need to provide accurate information about your business, such as the type of business, employees, and premises. Additionally, you’ll need to provide your driving licence and proof of trading.
Can I drive my own vehicle on a traders insurance policy?
Most motor trade policies allow you to drive your own vehicles and those in your possession for motor trade purposes. Some restrictions may apply based on the type of vehicle.
I just fix cars at home – do I need motor trade insurance?
If you repair other people’s vehicles for profit, you will need motor trade insurance.
When do I need to notify my motor trade insurance provider of new vehicles?
You must notify your insurance provider immediately for any vehicles in your possession for more than 14 days.
Does it cost more to add another driver to a motor trade insurance policy?
Yes, adding more drivers increases risk, so your premium will be higher.
Can I add employees to a motor trade insurance policy?
Yes, employees can be included in your policy.
I only work in the motor trade part-time. Can I still get a policy?
Yes, most providers offer part-time motor trade insurance policies.
Can I use a private NCB with motor trade insurance?
Yes, most providers allow you to use private or commercial NCBs when taking out a motor trade policy.
What types of liability insurance are available under a motor trade policy?
The two main types are public liability insurance and employers’ liability insurance. Employers’ liability insurance is legally required if you have employees, while public liability insurance is recommended but not mandatory.
Is proof of trading (POT) always required for motor trade insurance?
Yes, proof of trading is required when taking out a policy and for claims. Keep it readily available. Once your business is set up Insurance for startup motor traders is available from some insurers
Do I need to declare convictions under a motor trade policy?
If convictions are spent under the Rehabilitation of Offenders Act, you don’t need to declare them. Unspent convictions must be disclosed. Motor trade insurance for drivers with motor convictions is available from some insurers.
What if I want to cancel my motor trade policy before it ends?
You may cancel your policy early, but cancellation fees may apply. Insurance documents must be returned.
How long until I receive my motor trade insurance documents?
Policy details are emailed immediately after your first payment. Physical documents are usually sent within 2-3 days.
What if I want to increase my motor trade insurance coverage mid-term?
You can typically adjust your coverage mid-term by contacting your provider.
How can I pay for my motor trade insurance?
Most providers offer annual upfront payments or monthly direct debit options. Paying upfront often reduces overall costs.
Are there exceptions to vehicle types covered under a motor trade policy?
Coverage varies by provider. Common vehicles are usually covered, but high-end, imported, or rare vehicles may require special approval.
Can lease/hire purchase vehicles be covered under a motor trade policy?
Yes, vehicles on lease or hire purchase for over 6 months are typically eligible for coverage.
Can I drive vehicles without valid MOT/road tax under a motor trade policy?
Vehicles must have a valid MOT unless driven to a pre-booked MOT appointment. Vehicles without road tax can only be driven with valid trade plates.
Are luxury and sports vehicles covered under a motor trade policy?
Coverage depends on the provider. Some consider high-end vehicles too risky, so contact your provider with details to confirm coverage.
