Who Needs Motor Trade Insurance?

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Here, we’ll explain who needs this specialist type of insurance, whether it covers your personal car and what it means to be classed as a ‘full-time’ or ‘part-time’ trader.

Who needs motor trade insurance? 

Anyone involved in the motor trade industries. How do you know you’re a motor trader? Well, if you work in the buying, selling, repairing, or servicing of vehicles, then you fit the bill.  

This means that traders work in various environments, from car dealerships to auto shop mechanics and even from their own homes. With the industry encompassing many different professions, many opt for a combined motor trade policy. This type of insurance allows you to curate your policy exactly to what your business needs. 

What is a ‘full-time’ and ‘part-time’ motor trader? 

A ‘full-time’ motor trader is someone who buys, sells, or repairs as their primary source of income. Examples of this include valeters, mechanics in garages, and car dealers. Most full-time traders have their own premises or are mobile – however, some may operate from home. 

A ‘part-time’ motor trader will do the same work intermittently, often alongside their main job. Examples of part-time traders include a car ‘flipper’ who refurbishes cars to sell as a hobby to earn some extra cash or a car seller who works from their home part-time. 

A line of parked cars outside

What vehicles can I drive under a trader’s policy? 

Under a motor trader’s policy, you can drive vehicles that are part of your business activities and your personal vehicle.  

This also includes vehicles owned by the business, those for sale, customer vehicles, and those undergoing repairs or servicing.  

Will a motor trade policy cover my personal car? 

While motor trade insurance is designed for vehicles used in connection with your motor trade business, it is possible to add your own personal vehicles to your policy.  

However, some insurers may have restrictions in place on exactly who can add their vehicles to the policy.

Many insurers specify that only the policyholder and their business partners can be authorised to add their own vehicles.  

Can I add my partner’s or spouse’s car to my trader policy? 

Understandably, some traders want to add cars belonging to their partner or their spouse to the policy. Whether an insurer allows this will depend on who your cover is with and the type of policy you opt for.  

If this is something you’re interested in, it’s always best to disclose this during the application process so we can make sure you get matched with the policy and insurer you need.  

A mechanic fixing the inside of a car engine

Can I get a No-Claims Bonus on motor trade insurance? 

You can get a No-Claims Bonus (NCB) with motor trade insurance for every year a claim isn’t made.  

For more information on NCBs, check out our guide: How to prove and protect your No-Claims Bonus.

Can I transfer my no-claims bonus from my personal insurance to my motor trade insurance? 

It depends on your insurer and the policy you opt for. If you have private car insurance or personal van policy with a no-claims bonus accrued with some insurers, it might be possible to transfer it to your traders’ policy.  

With that being said, you must ensure that the insurer and policy you opt for will allow you to do this.  

If transferring your NCB is a non-negotiable factor for you when choosing your new road risk policy, let us know during the application process.  

When must I add a vehicle to the Motor Insurance Database (MID)? 

You should add a vehicle to the MID as soon as it is in your ownership or custody of it.  

For more information about updating the MID, check out our guides: 

Road-Risk Cover at One Sure Insurance 

Whether you work full-time or part-time, we’ll find you the perfect policy to meet all your business needs. Contact our insurance experts on 08000815113 to safeguard your motor trade business now.

About the Author

Thomas Walker

Head of New Business

Thomas is our Head of New Business. He began his insurance career in 2002 as an introducer for the Royal Bank of Scotland. Thomas has a Diploma in Insurance and is CII-certified. As his career evolved, he smoothly transitioned into insurance broking in 2005. He’s been with us at One Sure Insurance for 13 years in total and is our resident motor trade expert. Thomas’ other specialisms include liability insurance, commercial combined and other associated motor trade products. He is also passionate about fraud prevention, focusing on targeting ghost broking operations.