What Is Motor Trade Insurance?

Motor trade insurance is a policy taken out by someone who runs a business involving vehicles. Policies can cover companies that deal with their own and any customer’s vehicles that they take into their ‘care, custody and control’.

Since motor trade insurance can cover a wide range of businesses, every policy must be specifically tailored to each individual or firm. Whether you are a motor trader, mechanic, or breakdown technician, we can help you find coverage in just a few minutes.

To complete a quick quote all we need is:

· Your contact information
· Details about your motor trade business
· Type of policy you're looking for

You'll then receive a call from our team in minutes, who can provide you with our most competitive quote from our panel of insurers.

Why Choose Tradex As Your Trade Insurance Broker?

Choosing Tradex as your trade insurance broker ensures you benefit from our extensive experience, tailored coverage options, and dedicated support for your motor trade business needs.

However, that’s not all. We also offer:

• Quotes for motor trade businesses of all sizes
• Flexibility to choose between Road Risk Insurance only or Combined Motor Trade Insurance
• Access your online quote in three simple steps
• Policies generated by our team of motor trade specialists
• A friendly follow-up call from our team in minutes with our most competitive quote that could help you save on your existing premium.
• Over 25 years of experience handling unusual risks

Who Needs Motor Traders Insurance?

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:

If you run a motor trade business, you are legally required to have a basic level of motor trade insurance. Without it, you are breaking the law. Whether you work full-time or part-time, are self-employed or a contractor, you must have cover to protect against any vehicles you are responsible for.

The type of motor trade insurance you require depends on the area of the motor trade you operate in. For example, if you have vehicles under your care, custody, and control, you will need a motor trade insurance policy covering customers' vehicles. The type of cover you need would differ if you work in car sales and demonstrate, collect, and deliver vehicles.

It is common for motor traders to operate in more than one area and require a policy covering all of their business activities. At Tradex, we have many years of experience 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 to get coverage for private individuals who drive multiple vehicles.

What Type Of Motor Trades Insurance Policies Are Available?

Minder Policy

Minder policies include mechanical repairer, valuation, repossession agent, and van trader insurance for businesses that service customers’ vehicles.

Trader Policies 

For businesses with their own vehicles, including Car Dealer at Premises Insurance or Commercial Vehicle Importer & Exporter Insurance. 

Enthusiast Policies

For part-time traders, including Car Dealer at Home Insurance, The Restorer & Collector Insurance and Part-time Motor Trade Insurance.

What Does Motor Trader Insurance Cover?

Like any other type of insurance, the cover provided by each motor trade insurance policy will differ depending on the 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 and those you don't but are using to carry out your motor trade activity, whatever that may be. If your business doesn’t require vehicles to be driven on public roads, you could consider parts-only cover.

Parts only cover

Usually, the third party is the most basic level of motor trade insurance cover available. Still, depending on the nature of your business, you may also have the option to choose a ‘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 covers road risks, equipment, and even premises. Taking out combined motor trade insurance rather than several separate policies may be cheaper.

Employer’s liability

This cover is a legal requirement for any business that employs one or more staff members, regardless of whether they’re driving vehicles or not, and can be added to your standard motor trade insurance policy.

Public liability insurance

This type of cover can be included in a single motor trade insurance policy. It 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 cover damage to any stock vehicles or equipment you own on your business premises, such as unsold vehicles you own as a car salesman.

Extra drivers

If your employees drive customers’ cars, 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 ensure your insurance covers you and your staff when driving the necessary vehicle types, whether cars, vans, or HGVs.

What Level Of Cover Do I Need?

When searching for motor trade insurance, you must choose which level of road risk coverage suits your requirements. As with personal car insurance, there are three levels of coverage to choose from: third-party, third-party fire and theft, and comprehensive.

Third-party

Legally, this is the minimum level of coverage 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 resulting from theft or fire.

Comprehensive cover

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 and any customers’ vehicles under your care, custody, or control. If you have an accident while driving a customer’s vehicle during business use, the insurer will meet the cost of the repairs (less the excess).

How To Apply For Motor Trade Insurance

Finding the right insurance for the motor trade can be complicated; therefore, we do everything we can to streamline it 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. We pride ourselves on offering flexible terms and accommodating 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’ll do our best to find the cover that suits your needs.