What Is Motor Trade Insurance?

Motor trade insurance or motor traders insurance is a policy that’s taken out by someone who runs a business involving vehicles. Policies can provide cover for businesses that deal with both customer’s vehicles and their own.

When a motor trade business deals with customer vehicles, they are taking that vehicle into their ‘care, custody and control’ and therefore this requires a specialist insurance policy to cover that.  

Given that motor trade insurance can cover such a wide range of businesses, it’s essential that every policy is specifically tailored to each individual or firm. From large dealerships to mobile mechanics, whatever your occupation within the motor trade, we can find cover to suit your needs.

It takes just a few minutes to complete our quick quote form, all we need is your contact information, details about your motor trade business and the type of policy you're looking for. You'll then receive a call from our team in minutes who can provide you with a competitive quote that could save you up to 50% off the cost of your existing premium.  


What Type Of Motor Trade Insurance Policies Are Available?

Our coverage ranges from scrap, salvage and vehicle dismantlers to full and part-time motor traders with road risk or stock of vehicles at trade premises. Just some of the occupations that Tradex specialise in covering are as follows:

Minder Policy – For businesses dealing with customers’ vehicles


Trader Policies – For businesses with your own vehicles

Enthusiast Policies - For part-time traders

How Much Does Motor Trade Insurance Cost?

While the cost of motor insurance can differ drastically according to your business, we pride ourselves on offering policies that account for a diverse range of risks, at prices and terms to suit your business. Whether you're looking for export trade insurance, transportation insurance or commercial insurance, we can find cheap motor trade insurance cover to suit your needs, with policies starting from £476.93.


Why Choose Tradex As Your Insurance Broker?

    • Competitive quotes for motor trade businesses of all sizes

    • Flexibility to choose between Road Risk Only or Combined Motor Trade Insurance

    • Access your online quote in three simple steps

    • Policies generated by our team of motor trade specialists 

    • Friendly follow up call from our team in minutes with a competitive quote that could save you up to 50% off the cost of your existing premium.

    • Over 25 years experience handling unusual risks


How To Apply For Motor Trade Insurance?

Finding the right motor trade insurance policy can be a complicated process. We understand that, so do everything we can to make the process quick and simple for you. With our team of motor trade insurance specialists and a simple online quote system, we can get you covered, fast!

Over the years, Tradex Insurance Services has built up a wide portfolio of motor trade clients and we pride ourselves on being able to offer flexible terms and accommodate unusual risks. There isn’t much we won’t look at quoting, and in fact, we were one of the first brokers to consider the market which was previously thought of as “more trouble than it’s worth”. From large dealerships to mobile mechanics, whatever your occupation within the motor trade, we can find cover to suit your needs.

It takes just a few minutes to complete our quick quote form. All we need is your contact information, details about your motor trade business and the type of policy you’re looking for. You’ll then receive a call from our team in minutes who can provide you with a competitive quote that could save you up to 50% off the cost of your existing premium.

Motor Trade Insurance Policy Customer Gets Tyre Replaced


Do I Need Motor Trade Insurance?

If you are a motor trader then yes as you are breaking the law by not putting motor trade insurance in place. This requirement does not only apply to limited companies; if you’re self-employed but still have responsibility for other people’s vehicles then it’s vital you have the necessary cover in place too.

The type of motor trade insurance you must put in place depends on the area of the motor trade you operate in. For example, if you have vehicles under your care, custody and control then you will need a motor trade insurance policy that gives you cover for customer’s vehicles. However, if for example you work in car sales and demonstrate, collect and deliver vehicles, the type of cover you would need may not be the same.

It is also common that motor traders may operate in more than one area and require a policy that covers them for all of their business activities.  At Tradex we have many years of experience in dealing with motor traders and finding policies that match their exact requirements.

Importantly, to qualify for a motor trade insurance policy, you must be able to prove that you are running a genuine business that generates an income. Motor trade insurance cannot be used simply as a means to get cover for private individuals to drive multiple vehicles.


Insurance for motor traders protects you when moving customers vehicles.


What Does Motor Trade Insurance Cover?

Just like any other type of insurance, the cover provided by each motor trade insurance policy will differ depending on the particular risks you face. Given the diverse range of businesses in the motor trade, the cover and costs can vary enormously. However, it will typically include all or some of the following:

  • Road risks – A road risks policy allows you to drive your own vehicles as well as driving other vehicles that you don’t own for the purpose of carrying out your motor trade activity, whatever that may be. If your business doesn’t require vehicles to be driven on public roads then you could consider parts only cover.
  • Parts only cover – Usually, third party is the most basic level of motor trade insurance cover available, but depending on the nature of your business, you may also have the option to choose ‘parts only’ cover. This does not provide legal protection when taking customers’ vehicles out on the road.
  • Combined motor trade insurance – This type of policy provides cover for road risks as well as equipment and even your premises. It may be cheaper to take out combined motor trade insurance rather than a number of separate policies.
  • Employer’s liability – This cover is a legal requirement for any business that employs one or more members of staff, regardless of whether they’re driving vehicles or not and can be added to your standard motor trade insurance policy.  
  • Public liability – This is another type of cover that can be included as part of a single motor trade insurance policy. This will protect you and your employees against claims made by members of the public.
  • Product liability – If you fit a part to a vehicle that turns out to be defective, this type of cover will protect you against any claims that arise.
  • Material damage – This can provide cover for damage done to any stock vehicles or equipment you own, such as unsold vehicles you own as a car salesman.
  • Extra drivers – If your employees drive customers’ cars then you’ll need to decide between an ‘any driver’ policy or adding a number of named employees as extra drivers. In many cases, the latter will be cheaper.  
  • Vehicle types – You must make sure your insurance covers you and your staff to drive the necessary vehicle types, whether it’s cars, vans or HGVs.



Is Motor Trade Insurance Mandatory?

If you run a business in the motor trade then you are legally required to have a basic level of motor trade insurance. If you don’t then you are breaking the law. This applies to mechanics, car dealers, vehicle valets and other similar businesses. Both full-time and part-time businesses must have cover. The minimum level of cover required is third-party only, although liability cover is also recommended.

As well as putting the necessary insurance in place, anyone operating a business in the motor trade also has a legal responsibility to supply information to the Motor Insurance Database (MID).

How does Motor Trade Insurance Work?

The number of extras that can be included on a motor trade insurance policy is almost limitless, so think carefully about the cover that is included on the policy as standard and the other cover you may need. This will depend on your business type. Some extras will require an additional fee, so make sure you do not already have the relevant cover from another source.


What Level Of Cover Do I Need?

You will have to choose which level of road risk cover suits your requirements. As with personal car insurance, there are three levels of cover to choose from: third party, third party fire and theft and comprehensive. 

  • Third party – Legally, this is the minimum level of cover you must have to drive on public roads. This will cover you whilst driving vehicles, whether they are your customers or your own, for damage, loss or injury that you cause to third parties. This is the least expensive level of cover but also the most basic.
  • Third party fire and theft – This provides all of the cover of Third Party but also protects you against damage to vehicles covered by your policy occurring as a result of theft or fire.
  • Comprehensive – As well as the cover included above, a comprehensive road risks policy will also cover you for any accidental damage caused to any of your own vehicles but also any customers’ vehicles under your care, custody or control. If you have an accident while driving a customer’s vehicle for the purpose of your business, the insurer would meet the cost of the repairs (less the excess).


Latest Customer Reviews

Dawn Spencer

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Whenever I call Tradex, which is quite often, I do have dealings with the existing team, the sales team and the direct debit team, everyone is always helpful and friendly. Even though occasionally there may be problems with mutual client's, they are always resolved. I always have a friendly, polite conversation with everyone I speak to at Tradex. A pleasure.

Independent feedback, 
provided by Reviews.co.uk