Motor Trade Insurance
Whether you're running a busy garage, operating a vehicle recovery service, or buying and selling cars from a forecourt, your business faces unique risks every single day. From driving customer vehicles to protecting your premises and equipment, you need insurance that understands the motor trade inside out.
At Let's Talk Insurance, we specialise in arranging comprehensive motor trade insurance policies that protect businesses like yours. We work with leading UK insurers to find cover that fits your specific needs - whether you're a full-time trader or running a part-time operation from home.
What is Motor Trade Insurance?
Motor trade insurance is specialist cover designed specifically for businesses working with vehicles. Unlike standard motor insurance, it recognises that motor traders regularly drive different vehicles - often cars they don't own - and need protection that moves with them, not just with a single vehicle.
The right policy protects you when you're test driving a customer's car after repairs, delivering a vehicle to a buyer, or moving stock between locations. It also safeguards your business premises, tools, and liability to the public.
Most motor traders need two core elements: road risk insurance to drive vehicles legally, and additional business protections to cover everything else. Many choose to combine these into a single, comprehensive policy.
Road Risk Insurance
Road risk insurance - sometimes called vehicle transportation insurance - is the foundation of motor trade cover. It allows you to legally drive customer vehicles, stock, and courtesy cars on public roads.
Think of it as your driving insurance rather than vehicle insurance. It covers you (and named drivers on your policy) to drive virtually any vehicle within your business activities, whether you own it or not.
Who needs Road Risk Insurance?
Road risk insurance is essential if your business involves:
Vehicle sales – test driving stock with potential buyers or collecting vehicles from auction
Repairs and servicing – road testing after work or moving vehicles between your workshop and storage
Valeting – collecting and delivering vehicles to and from customers
Vehicle recovery – driving recovered vehicles to garages or storage facilities
Part-time trading – buying and selling vehicles as a side business
Even if you only occasionally drive customer vehicles, you're required by law to have appropriate insurance in place.
Coverage Levels
Road risk insurance comes with different levels of protection:
Comprehensive cover provides the highest level of protection, including damage to the vehicle you're driving, third party vehicles, property, and injuries. This is the most popular choice for established traders handling valuable stock or customer vehicles.
Third party, fire and theft covers damage you cause to other people's property and vehicles, plus protects against fire damage and theft of the vehicle you're driving. It's a middle-ground option that balances cost with reasonable protection.
Third party only is the minimum legal requirement. It covers your liability for damage to other vehicles and property but doesn't protect the vehicle you're driving. While it's the most affordable option, it leaves you exposed if you damage a customer's car or your own stock.
Your choice depends on the value of vehicles you handle and your risk appetite. We'll help you understand which level makes sense for your business.
What's Typically Included?
A standard road risk policy covers you to drive cars, vans, and light commercial vehicles up to a certain value - often £50,000 or £100,000, though higher limits are available. You can usually add additional drivers, such as employees or business partners, to the policy.
Most policies include personal accident cover for the driver and some level of legal expenses insurance. You'll also typically get cover for vehicles held in your custody or control, though exclusions often apply to vehicles undergoing repair work unless specifically added.
Combined Motor Trade Insurance
While road risk insurance gets you on the road legally, it doesn't protect everything your business needs. Combined motor trade insurance brings together road risk cover with additional protections tailored to motor traders.
A combined policy creates a comprehensive safety net for your entire operation, often at a better price than buying separate policies.
What Does Combined Cover Include?
Combined motor trade insurance typically brings together:
Employers' liability insurance is legally required if you employ anyone, including part-time staff or family members. It covers compensation claims if an employee is injured or becomes ill due to their work.
Public liability insurance protects you if a member of the public is injured on your premises or their property is damaged due to your business activities. This could be a customer tripping over equipment in your garage or a vehicle you're working on rolling into their fence.
Business premises cover protects your garage, workshop, or showroom against damage from fire, flood, storm, theft, and vandalism. It can include the building itself (if you own it) and contents like racking, office equipment, and furnishings.
Tools and equipment insurance covers your spanners, diagnostic equipment, ramps, and other tools against theft, damage, and breakdown. For many motor traders, thousands of pounds worth of tools are essential to their business.
Stock insurance protects vehicles you own for sale or repair against fire, theft, and accidental damage while they're on your premises or temporarily away from it.
Goods in transit cover looks after parts, accessories, and equipment while they're being transported to or from your business.
Optional Extras
Depending on your business, you might also need:
Legal expenses insurance funds legal representation if you're involved in disputes with customers, suppliers, or employees.
Loss of earnings cover provides income if you can't work due to injury or illness.
Contract works insurance protects you if you're carrying out installation work, such as fitting parts or accessories.
Personal accident insurance pays a lump sum if you're injured and unable to work.
Who Benefits from Combined Cover?
Combined motor trade insurance makes particular sense if you:
Operate from business premises rather than your home
Employ staff or work with business partners
Hold valuable stock or tools
Offer a range of services (such as sales, repairs, and valeting)
Want the convenience of a single policy and renewal date
Even part-time traders often benefit from combining road risk with at least public liability and tools cover.
Understanding Your Motor Trade Insurance Needs
Every motor trade business is different. A mobile mechanic working from a van has completely different needs to a forecourt selling prestige vehicles.
When we arrange your motor trade insurance, we ask about:
Whether you're trading full-time or part-time
What types of vehicles you handle and their typical value
How many people drive vehicles in the course of business
Whether you employ staff
What premises you operate from
The value of your tools and stock
Any specialist services you provide
This helps us find a policy that fits like a glove - with no expensive gaps in cover or unnecessary extras pushing up your premium.
Why Choose Let's Talk Insurance...
We understand that motor traders need insurance arranged by people who understand their business. We don't just sell policies - we take time to understand your operation and find cover that genuinely protects you.
We work with specialist motor trade insurers across the UK market, comparing policies to find competitive premiums without compromising on the cover you need. Whether you're starting out with basic road risk cover or need a comprehensive combined policy, we're here to help.
Our team speaks your language and knows the motor trade. We'll explain your options clearly, answer your questions, and make sure you understand exactly what you're covered for.
Get a Motor Trade Insurance Quote Today
Finding the right motor trade insurance doesn't need to be complicated. Give us a call and let's talk about your business. We'll explain your options, answer your questions, and provide quotes from leading UK insurers.
Protect your motor trade business properly - contact Let's Talk Insurance today.
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Contact Us
Call: 07465 883517 Or 07468 883404
Damyns Hall Aerodrome, Aveley Road, Upminster, Essex RM14 2TN.
Let's Talk Insurance Services Ltd is an Authorised Representative of Gauntlet Risk Management Ltd who are authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 308081. Let's Talk Insurance firm reference number is 1023606. You may check this on the Financial Services Register by visiting the FCA website, https://www.fca.org.uk/register/ or by contacting the FCA on 0800 111 6768