Motor Trade Insurance
Motor Trade Insurance
Motor Trade Insurance covers many areas of the Motor Trade industry. From vehicle repairs, car sales, MOT test centres, mobile repairers, or car valet companies, to name a few. Each of these businesses faces unique risks, dependant on the business type.
Therefore, it is critical that your specific motor trade business obtains the insurance covers you need to cover the risks you face on a day-by-day basis. Here at Konsileo, we have specialist brokers that have worked in your sector for many years and understand your specific insurance needs.
What is Motor Trade Insurance?
Many motor trade policies are available online, but it’s a very specialist and complex insurance cover, so we strongly advise you to talk with our specialist team to ensure appropriate insurance is in place, to cover any possible risk that may arise. A Commercial Combined policy would normally include business property, machinery, and tools as standard, but additional covers would be looked at and included by our specialist motor trade team as needed, applicable to your business type.
Do I need Motor Trade Insurance?
In a word, yes! It’s a legal duty that EVERY roadworthy vehicle is insured including, third-party, third-party fire and theft or fully comprehensive. As a trader, a full Motor trade policy will protect all your business liabilities, assets, and business and customer vehicles.
Road Risk Insurance
Road Risk insurance is a major part of many motor trader’s business need. This allows the collection and delivery of customers vehicles should this be a service you offer your customers, furthermore it provides cover to protect you whilst you move customers vehicles around your own premises. Road Risk Insurance also provides covers for your own business vehicles and named employees in addition to customer vehicles.
Again, we would request that you speak with our specialist team regarding Road Risk Insurance.
Why Choose Konsileo for my Motor Trade Insurance?
Our Motor Trade Team have a wealth of experience dealing with Motor Traders of every type. We have years of collective motor trade sector knowledge and fully understand your systems, processes and the machinery you use. We deal with many motor traders throughout the United Kingdom offering support, advice and covers.
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Frequently Asked Questions
Motor Trade insurance is a type of commercial insurance for businesses that handle vehicles, in any capacity, as part of their work. Unlike standard car insurance, it provides cover for business activities and can include protection for both customer- and business-owned vehicles.
If a vehicle is used on roads or in public places, motor insurance is a legal requirement in the UK. In addition, you must provide a Motor Trade Insurance Certificate if you are a motor trader applying for DVLA trade plates, as standard car insurance is not valid.
Typical Motor Trade Insurance policies cover named drivers to driver business-connected vehicles on public roads. It protects the company if they undertake activities such as collection, delivery, demonstration, or road testing. Depending on your niche, additional policies are available to ensure full coverage against risks. This includes, but is not limited to:
- Tools and machinery
- Vehicle stock
- Bodywork and repairs
- Motorcycles
- Customer vehicles on-site
- Business Interruption
- Public Liability
You must have Employer’s Liability (EL) if you have any employees. If you are self-employed or a sole trader, you do not require EL.
Eligible applicants are businesses that can prove genuine motor trade activity and income. This includes, but is not limited to:
- Home-based car dealers
- Forecourt dealers
- Mobile mechanices
- Repair garages
- MOT Stations
- Body shops
- Tyre fitters
- Valeters
- Vehicle Collection and Delivery
Insurers commonly ask for evidence to prove Motor Trade activity. This can include documents such as receipts, vehicle purchase records, security measures, and driver history. such as business accounts, receipts, company documents, vehicle purchase/sale records. These details will help determine the cost of the premium, which is partially calculated based on risk factors.
Road Risk is designed to cover Motor Traders when driving business-related vehicles on public roads. It has the standard level of cover for third-party fire and theft. It suits smaller traders, mobile businesses, and home-based or part-time traders.
If you are a larger business, or utilise specialist equipment or stock, Combined Motor Trade insurance is better for you. It includes the Road Risk policies packaged with more niche covers available. Get in touch with your broker for more information on how to tailor your policy for your unique needs.
Yes, you should get Motor Trade insurance if you work from home or run a business part-time. If you can show genuine trading activity, and the use is properly disclosed, you can take out Motor Trade insurance.
Road Risk is often the entry-level option for part-time traders, while a Combined Motor Trade policy is for more complex or extensive businesses.
You cannot take out Motor Trade insurance if you are a private individual with multiple cars.
There is no single figure for a Motor Trade policy cost. Premiums depend on a variety of factors, including:
- Trade
- Turnover
- Premises
- Drivers
- Vehicles values
- Claims record
- Security
- Type of cover selected
It can range from about £600 a year to over £6,000 for high-risk or large-scale companies. Your broker will approach insurers, who will assess factors such as the nature of your business, years of trading, experience, and premise-type. It will also consider value of vehicles, number and ages of drivers and their histories, storage arrangements, and security measures.
If you have previous claims, this will also affect the cost of your insurance premium. Wider factors can also influence the price, such as energy and supply chain pressures, repair cost inflation, and vehicle complexity. For Electric Vehicles, accessibility to repair shops and auto-part costs factor in too.
Yes, but it must be arranged correctly. Most Motor Trade policies require specific named drivers to remain valid. Employees, business partners, and sometimes family members can be added where they genuinely work or are connected with the business. Those with convictions, criminal history, or claims experience, as well as those under-25, will increase cost or restrict acceptance.
Traders need to check per-vehicle and total-site limits when looking to add customer vehicles to a policy. Usually, customer vehicles are covered when they are in the trader’s care, custody, and control. It’s important to tell your broker of any changes to business operation, otherwise it could void your policy and prevent any claims being made.
To choose the right Motor Trade insurance policy, start by mapping what the business actually does. This could include, but not limited to:
- Sales
- Repairs
- MOT's
- Valeting
- Recovery
- EV Work
- Classic Restoration
- Vehicle Delivery/Storage
- Demonstrations
- Premises Use
- Tools and/or stock
- Employees
- Customer vehicle values.
You need to declare all business operations to your broker. This is to ensure you receive a policy that truly covers your needs. Under-insuring, or failing to declare, can result in rejected claims.