Motor Trade Insurance

Motor trade insurance is a catch-all term that can cover a huge range of policies, which are aimed at keeping businesses and individuals working in the motor industry road-legal.

You’ll need one of these motor-specific business insurance policies if your company has customers’ vehicles under its control, care or custody. Motor trade insurance will also be needed for businesses dealing with sales, covering the firm for things such as the demonstrating, collecting and delivering of vehicles.

The possible scenarios that may require cover are almost limitless. Traders’ insurance could, for example, be needed by a single, self-employed mechanic, a main-dealer garage network, or a car valet business.
Even within such firms, a company may need cover for just one driver, for a known group of drivers, or for ‘any driver’.

What sort of businesses can motor trade insurance cover?

Vehicle repair businesses
Vehicle sales businesses, including individual traders operating from home (whether full- or part-time)
Garages offering MOTs and servicing
Breakdown and recovery firms
Vehicle delivery firms (cover may be referred to as ‘trade plate insurance’)
Scrap yards
Specialist vehicle collectors and restorers
Firms selling and/or fitting vehicle parts and accessories, including tyres
Vehicle repossession businesses
Car valet companies

What does traders’ insurance cover?

Parts only cover
Third party is typically the most basic level of cover, but – depending on the nature of your business – you may also have the option of ‘parts only’ cover; note that this on its own will not give you the legal protection necessary to take a vehicle on the road.

Road risks policy

Having road risks cover on your trade insurance means you’ll be able to drive your own vehicles, plus those that aren’t yours for the purpose of carrying out your job.

At the most basic level, you’ll face the choice of whether to arrange cover on a third party only (TPO), third party, fire and theft (TPFT), or comprehensive basis.

Traders combined policies
A traders combined policy is typically designed for vehicle traders who work from business premises.

As well as road risk cover, such a policy typically comes with a bespoke range of cover options, including things such as those listed below.

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