What is First Time Motor Trade Insurance?
First time motor trade insurance is a type of cover that’s specially designed for those entering into the motor trade for the first time. This often but now always means younger traders and therefore the risks can be considered higher by motor trade insurance providers.
First time motor trade insurance can cover you for all the main risks that come with operating in the motor trade no matter what type of business you ruin. You can get cover for road risks as well as things like cover for your premises, stock, tools and cash.
You can find out more about the different types of cover that are available with first time motor trade insurance as well as the best ways to save money.
What the experts say…
“Setting up a business in the motor trade for the first time can seem daunting but one thing that doesn't need to be a challenge is getting the right first time motor trade insurance. You can have cover in place in a matter of minutes that will cover you for all the main risks associated with running a motor trade business.”
– Ian Beevis, Founder of Clean Green Compare
What Does Motor Traders Insurance for Car Jockeys Cover?
Every business is different, but most car jockeys’ policies can include:
- Road risks insurance: Lets you legally drive and move customer vehicles on public roads and within private property.
- Public liability: Covers injury or property damage caused to customers or the public—vital for busy venues or events.
- Employers’ liability: Required by law if you have any staff—even part-timers or temporary workers.
- Premises and asset cover: Protects office equipment, radios, signage, or customer vehicles stored overnight.
- Money and keys cover: Insures you for loss or theft of customers’ keys and any cash handled as part of your business.
- Goods in transit: If you transport cars between sites (for example, moving vehicles between hotel and offsite parking).
- Legal expenses: Help with legal costs if there’s a claim or dispute.
- Personal accident and sickness: Provides financial protection if you or staff are injured at work.
Cover can be tailored to suit whether you run a single hotel valet service or manage a large team at multiple venues.
Optional First Time Motor Trade Insurance
In addition to the main type of motor trade insurance, which allows you to work on customer vehicles, you can also choose from the following types of cover:
If you have any employees then you must have employers’ liability insurance in place in order to run your business legally. Employers’ liability will pay out if a claim went against you from one of your employees
In addition to employers’ liability insurance, you can also get public liability insurance, which will pay out if a claim from a customer or member of public went against you.
If you have your own premises and don’t have building insurance in place, then you’ll certainly want to have it covered as part of your motor trade policy. It will cover your premises for structural damage from things like fire, flooding and vandalism.
You can also get cover for your tools and equipment, both on-site and in transit.
What's Not Usually Covered By First Time Motor Trade Insurance?
When you’re starting out for the first time in the motor trade, it’s easy to overlook things that you might assume you’re covered for but in fact aren’t. To help you avoid this, below are some of the main exclusions with first time motor trade insurance:
- Non business use of vehicles: – The vehicles that are in your care are only covered for driving when it’s specifically related to business use, for example you’re moving them from one part of your workshop to another. If you or an employee were to use them for personal use, you would not be covered.
- Imported and high value cars: – Although your policy will cover you for most regular vehicles, there are exceptions when it comes to imported, rare and extremely high value/high performance cars that might require extensions to your policy. If such a vehicle comes into your care, you should inform your insurance provider immediately to see if you’re covered.
- Personal and employee vehicles: – Most first time motor trade insurance policies will not cover any personal vehicles, including those of your own and your employees. If you want to add any such vehicles, you’ll need to state this explicitly when taking out your insurance.
- Malicious or negligent acts: – Any acts or gross negligence or malice that results in damage to your property or the vehicles you work on, will not be covered by your insurance.
Checking the finer details of your insurance is always recommended, particularly when you’re first starting out in the motor trade.
What Types Of Businesses Need First Time Motor Trade Insurance?
Almost every type of motor trade insurance business can make use of this type of cover, regardless of the area of specialty, if the person setting up the business is entering into the motor trade for the first time. Some of the main types of motor trade businesses that require this cover include:
- Vehicle sales businesses: If you’re planning to start any type of business that buys and sells cars, whether it’s a dealership, auction house, independent car sales or importing and exporting, then you absolutely need to get first time motor trade insurance to run your business safely and legally.
- Garages and MOT centres: Any types of businesses that carry out car repairs, tuning and upgrades also need first time motor trade insurance, including garages, MOT centres, body shops and tuning and performance workshops.
- Vehicle delivery and collection services: If your business is going to revolve around delivering and collecting vehicles on behalf of other companies, then you’ll certainly want to have first time motor trade insurance too.
- Breakdown recovery and collection: Businesses that recover and collect other vehicles absolutely need motor trade insurance in place, so if this is your plan, you’ll want to opt for a first time motor trade insurance policy.
As you can see, essentially any type of motor trade business where you’re starting out for the first time will benefit from getting first time motor trade insurance.
Get First Time Motor Trade Insurance Quotes Today
The Steps To Getting First Time Motor Trade Insurance
Getting first time motor trade insurance is quite a quick and simple process. In order to get quotes, you’ll need to do the following:
How Much Will I Pay For First Time Motor Trade Insurance?
The cost of no two policies are the same since there are so many variables that insurance providers take into account. Below are the main ones:
- The type of business you have: Motor trade businesses can vary quite a bit when it comes to the work they carry out and the size of the operation. Things like the focus of your business, whether you have a premises and whether you have employees (and if you do, how many) will all play a big role in how much you pay for first time motor trade insurance.
- The type of policy you get: Another factor that will affect how much you pay for motor trade insurance is the type of policy you get. As covered earlier, you can get either a road risk only policy or a combined policy. Another factor that will affect the cost of your insurance is the level of road risk insurance you get, whether it’s third party only; third party, fire and theft; or fully comprehensive.
- Additional types of cover: Any types of additional cover you get will also affect the cost of your insurance. You can choose from various different additional cover options, such as tools cover, cash cover and breakdown recovery.
- Your age and background: A lot of first time traders are young people under the age of 25, which does usually mean higher insurance costs. This isn’t the only factor that’s at play however. Things like your driving experience, claims history and criminal record will all factor in too.
- Method of payment: This refers to whether you choose to pay for your policy annually or monthly. Many first time traders opt for monthly payments since it’s more manageable but if you can afford to pay annually, you will avoid interest payments.
Although the above factors are all important, you should always shop around for quotes from different insurance providers since prices can vary a lot.
Great Ways To Save Money On First Time Motor Trade Insurance
It’s always important to take any steps you can to save money as a first time trader. Below are some of the best ways of doing this:
Hopefully you have found the tips above useful and can employ at least a few of them to help reduce the cost of your insurance.
FAQs – First Time Motor Trade Insurance
Do I need first time motor trade insurance if I only work part time?
Yes, if you’re working with customer vehicles, even if it’s on a part time basis, you still need motor trade insurance since your private car insurance won’t cover you.
Will I be able to drive my personal car under my motor trade policy?
Usually not as standard but most insurance providers will allow you to add your personal vehicle to your policy, although this will naturally increase the price.
What are the most important types of cover to get with first time motor trade insurance?
Road risks insurance comes as standard but you should think about what level of cover you want to get, whether it’s third party only or fully comprehensive. You should also consider whether it’s a good idea to have things like premises cover and public liability insurance. How important these things are will depend on the type of motor trade business you have and the size of your operation.
Is first time motor trade insurance more expensive?
It can be, particularly if you’re under the age of 25 and don’t have any no-claims bonus built up but even so, it shouldn’t be prohibitively expensive in most cases.
