Motor trade insurance

Motor trade insurance is designed to protect car dealerships, garages and others in this busy sector against issues that may lead to financial loss. It covers the various risks that businesses operating in the motor trade face, including loss or damage to customers’ vehicles while under your care.

Businesses in the motor trade industry that need motor trade insurance include:

• Car dealerships

• Car repair garages 

• Mechanics 

• Valet services 

• Vehicle restorers

• MOT testing stations

Additionally, businesses dealing with the import or export of vehicles and those buying and selling vehicles for a profit should also consider motor trade insurance.

Motor trade insurance can also offer a range of extras, either included in more comprehensive policies or bought as add-ons. These include:

• Goods in transit cover

• Loss or damage to business equipment and machinery

• Loss or damage to a customer’s property stored in the car

• Employers' liability insurance if you face a claim from a member or staff

The cost of motor trade insurance depends on several factors, including:

• The size of your business

• The number of employees

• The types and number of vehicles typically being used, traded or worked on

• The level of protection required

• How many years of no claims you have

• Your age (younger policyholders typically pay more)

It’s important to compare quotes from different insurance providers to find the best policy for your business.

If a job requires you to drive vehicles that aren’t yours, it might be a good idea to add a road risks policy to your motor trade insurance. For example, you may need a larger van if you’re a landscape gardener and need to excavate and remove a large brick fish pond.

You can select the level of cover you need so you are covered for the type of risk you might encounter. These are:

• Third party

• Third party, fire and theft

• Comprehensive

Road risks cover is worth considering even if your motor insurance allows you to drive other vehicles. This is because the terms of your insurance will invariably stipulate that the purpose of the journey must be for social or leisure and not for work.