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A Guide to Motor Trade Insurance

If you operate any type of automotive business, from selling used cars to detailing vehicles, you need specialised cover beyond a standard motor policy.

Motor trade insurance is essential for protecting your business, its assets, employees, customers and their vehicles when things go wrong.

In this guide to motor trade insurance, we’ll cover everything you need to know, from types of policies to tips for getting affordable premiums.

What is Motor Trade Insurance?

Motor trade insurance provides financial protection for businesses and workers that buy, sell, repair, transport or otherwise handle cars, trucks, and motorcycles as part of their work. Policies cover liability for damage/injury to people or property involving vehicles in your care or possession.

Who Needs This Type of Cover?

If your business involves working on, moving, storing or selling motor vehicles, having proper insurance is vital. This includes:

  • Vehicle dealers and wholesalers

  • Mechanics

  • Mobile mechanics

  • Bodyshops

  • Vehicle recovery services

  • Car jockeys

  • Car cleaners and valeting services

Types of Motor Trade Policies

There are two main categories of cover:

Road Risk Only – For home and mobile based businesses. Covers driving vehicles but not physical business assets and locations.

Motor Trade Combined – For businesses with premises, buildings, tools, equipment, contents, stock, machinery, diagnostic equipment etc. Includes road risk plus protection for your business property and income sources.

Levels of Road Risk Cover

Road risk policies have three tiers similar to personal auto insurance:

  • Third Party Only – Injury/damage liability

  • Third Party Fire & Theft – Above plus fire and theft

  • Comprehensive – All of the above plus damage to your own vehicles - glass/windscreen cover is an optional extra usually

Extra Cover Options

Additional insurance covers motor trade policyholders commonly take out for added protection include:

  • Public liability

  • Product liability

  • Servicing indemnity

  • Employers liability

  • Tools/equipment

  • Stock cover

  • Business interruption

  • Management liability

  • Cyber insurance

  • Goods and vehicles in transit

  • Commercial legal expenses

  • Loss of MOT licence

  • Money cover

How to Get Affordable Premiums

Tips for reducing your motor trade insurance costs include:

  • Increasing your voluntary excess

  • Limiting young/high risk drivers

  • Providing secure parking facilities

  • Upgrading security beyond minimum requirements

  • Providing photos of your premises

  • Demonstrate risk management e.g. good housekeeping

Get Expert Advice

Every motor trade business has unique risks and insurance needs. Consult a quality insurance broker like Keep, to review your operations and build tailored protection.


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