Motor Trade Insurance

With this type of policy, you can drive your own car and also the cars that you’re working with.

However, there are exclusions to the types of cars you can drive on this policy. These restrictions can vary but usually, they include luxury, executive or high-powered vehicles.

As trader’s insurance is specifically aimed at covering businesses, proof that you are a legitimate business is essential. Our insurance underwriters will only cover traders with a financial interest in the industry, as well as both experienced and new traders.

Luckily, proving that you are an active and genuine trader for profit is quite simple. 

Simply keeping a record of anything will show insurers that your business is active. Insurers will generally accept the following as proof:

•  Invoices and receipts of vehicles sold or repair services carried out.
• Advertisements both online and in print.
• Tax forms.
• Registration documents.
• Business memberships and proof of a professional bank account.

Additionally, if you are a car seller, you must prove your business’ motor trade activity by providing details about turnover and the number of vehicles sold along with receipts.

We recommend that you do not send your evidence by post as these documents may become lost. 

Create digital copies by scanning or taking photographs of your documents, then save them in a folder ready to email them to your insurer. When chatting with one of our insurance experts on the phone, we can guide you through the process of sending over all the evidence needed.

Your policy can include named drivers, employees, and sometimes relatives or spouses.

However, your policy may have age restrictions, especially for drivers under 25. We understand that if your business has young employees, this might be of concern, so let us know during the application process and we’ll be able to direct you appropriately.

Yes, but not automatically. If you use trade plates, your policy must specifically include coverage for their use.

To be covered:

• You must hold valid DVLA-issued trade plates
• Your insurer must know you use them
• Plates must only be used for legal motor trade purposes (e.g. delivery, demonstration, testing)

Always double-check your policy documents or speak to your insurer to ensure trade plate use is covered.

If you work with vehicles for profit even on a part-time basis you likely fall under the motor trade category.

• Vehicle Dealers 
• Mechanics & Garages
• Valeters & Detailers
• Breakdown & Recovery Operators
• Mobile Mechanics & Tyre Fitters
• Vehicle Dismantlers
• Vehicle Delivery Agents
• Body Shops & Paint Specialists

The Motor Insurance Database (MID) is a register of all vehicles insured and shows the identity of the relevant insurer.

You must keep the MID up to date concerning vehicles you own or those that are likely to be in your custody. Additionally, you will need to notify the MID when you no longer have these vehicles. 

MID updates can include:

• Vehicles that you use for social, domestic and pleasure.
• Any vehicle used as part of your business.
• Trade plates.

Policyholders are legally required to supply accurate and timely MID updates. If a trader’s car does not show up as being insured on the MID, they could be stopped by the police, receive a penalty fine, and even have their vehicle impounded. 

To learn more about our MID update portal, read our guide: How To Update The MID.

Road risk insurance is the minimum level of legally required insurance coverage.  

Depending on the level of coverage you choose, ​it will cover for loss and damages to a third-party‘s vehicle.

If you opt for a higher level cover to include your vehicles and your customers’ cars, you can be covered against additional potential risks encountered while conducting business on public roads.

It will also allow you to add and remove vehicles from the Motor Insurance Database (MID), which helps to ensure that you’re legally insured.  

Road risk-only policies are particularly popular among businesses that buy, sell and trade vehicles from their own homes. However, you can still purchase it if you work on separate premises. 

If you fix other people’s vehicles or sell cars to make a profit, you need at least  Third-Party cover, even if you run your business at home.

Even though this is the minimum legal requirement, we highly recommend that sellers running their businesses from homes consider a comprehensive or combined motor trade policy.

From liability insurance to policies that protect your cash on-site, your cover can be tailored to suit your business.

Whether you can add a personal car to your policy depends on the insurer and cover you opt for.

If you want a motor trade policy that will include your own vehicle, just let us know during the application process.

Our experts can advise you on ensuring you have the correct insurance policy. Call us on 0800 107 1260 to get the ball rolling towards getting insured.

Part-time motor trade insurance is typically more affordable than full-time cover.

It’s ideal if you operate a small-scale or side business, such as selling a few cars a month or doing evening repairs.

However, your final cost depends on factors like experience, claims history, vehicle types, and required coverage.

This type of insurance is only suitable for people who work with vehicles for profit.

If you’re looking to insure your personal vehicle and you do not sell or repair cars, then you would not qualify for this particular road risk policy.

Restrictions on the types of vehicles covered will vary depending on the type of motor trader insurance policy you’ve chosen and the insurer.

Usually, these restrictions cover imported cars or models of very high value and performance.

Even if your vehicles don’t fit the usual criteria for some policies, we will find any existing policies that will suit your vehicle.