If you work with vehicles as part of your business, standard car insurance will not cover you.

It does not matter whether you are buying and selling cars, servicing them, or valeting them.

The moment you are working on or moving vehicles that belong to other people, you need a different type of cover entirely.

What Is Motor Trade Insurance?

Motor trade insurance is a specialist policy designed for businesses and individuals who work with vehicles commercially.

It covers you to drive, move, and work on vehicles that you do not own, which is something a standard motor policy will never do.

Who Needs Motor Trade Insurance?

You may need motor trade insurance if you:

  • Buy and sell vehicles as a trader or dealer
  • Service, repair, or MOT vehicles for customers
  • Valet or clean vehicles belonging to other people
  • Work as a mobile mechanic
  • Run a car rental or leasing business
  • Work in vehicle recovery or transportation

If any part of your income involves handling vehicles that belong to other people, a standard policy leaves you exposed.

What Does Motor Trade Insurance Cover?

Cover varies depending on your business, but a typical motor trade policy includes:

  • Road risk cover, allowing you to drive customers vehicles on public roads
  • Liability cover in case a vehicle is damaged while in your care
  • Employers liability if you have staff working for you
  • Premises cover for your garage, forecourt, or workshop
  • Tools and equipment cover

Policies can be arranged for sole traders working alone or for larger businesses with multiple employees and premises.

What Is Road Risk Only Cover?

If you do not have business premises and work on a smaller scale, road risk only motor trade insurance may be all you need.

This covers you to drive vehicles that are not registered to you on public roads.

It is a popular option for:

  • Part-time vehicle traders
  • Mobile mechanics
  • Individual car dealers who work from home

It is a more affordable option, but it is important to make sure the level of cover matches exactly what you do.

Part-Time Motor Traders

You do not need to run a full-time business to need motor trade insurance.

If you buy and sell a number of vehicles each year for profit, HMRC and insurers may class you as a trader rather than a private seller.

This means your personal car insurance would not cover you when driving vehicles you have bought to sell on.

If in doubt, it is worth speaking to a specialist broker who can advise on whether you need motor trade cover.

Need Motor Trade Insurance?

Whether you are a sole trader or running an established garage, getting the right cover in place matters.

At Alternative Insurance Brokers, we specialise in motor trade insurance for all types of businesses and individuals.

Call 0161 388 2520 for a free, no-obligation quote and advice.