What is motor trade insurance, and what does it cover?

Motor trade insurance is a type of insurance policy designed to cover businesses that buy, sell, repair, store, or drive motor vehicles. It typically covers liability for damage to third-party property, as well as damage to vehicles in the care, custody, or control of the insured. It may also cover loss of, or damage to, vehicles owned by the insured, as well as legal expenses. A policy could also includes employees, tools and property, liabilities, and your day-to-day business activities. Outside of the motor trade industry, most companies have to take out both a business policy and a motor policy. For motor traders both are covered under one policy.

Motor trade insurance, car trade insurance, and traders' insurance; is there a difference?

No, there is no difference. They are all terms used for motor trade insurance.

Can I get motor trade insurance for drivers under 25 years old?

Yes you can, although the rating will be dependent on experience.

Do I need motor trade insurance?

If you work in the motor trade and either employ people or drive cars, then there is a legal requirement to have valid insurance.

What is the Motor Insurance Database and Continuous Insurance Enforcement?

The MID was set up to comply with an EU Directive, which requires insurance details of all vehicles in member states to be easily accessed by a national information centre. We will work with you and your insurance company to ensure you comply with this directive. Continuous Insurance Enforcement (CIE) has been implemented to reduce the number of uninsured drivers. Under CIE, the registered keeper of a vehicle will be sent an Advisory Letter if it appears that the vehicle has no insurance, unless it has a valid Statutory Off Road Notice (SORN).

Who can drive the vehicles on my motor trade policy?

This all depends on how the policy has been setup. There are two main ways to set up a policy, either on a named-driver or any-driver basis. It makes sense to plan who you want to drive as the tighter the restrictions on driving, generally the better the premium. For example, you can restrict any driver to business-use only.

Motor Trade Insurance Brokers | Alan Boswell Group

Name: Motor Trade Insurance
Brand: Alan Boswell Group
Rating: 4.8 (11503 reviews)

Motor Trade Insurance

Cover for business-owned vehicles shields enterprises from costs caused by accidents, theft, or unexpected incidents involving their motor fleet.

Employers’ liability £10m

Full cover for loan cars

Cover for vehicle recovery

Motor trade insurance covers a range of businesses and brings together a blend of insurance policies, such as motor and business insurances, to provide cover for all aspects of your business including employees, tools, property, vehicles, liabilities, and your day-to-day business activities.

If you hire out any of your vehicles then you will need a self-drive hire policy.

The Alan Boswell Group Difference

We understand the motor trade and know how varied each business is and how important it is to get the right cover. We believe in the personal touch and our experts will explain what covers are required to ensure your business is fully protected. If you value your business we believe you’ll value our advice. One of our motor trade experts can visit your business to help you understand what cover is required.

Insurance adviser for Motor trade insurance

How our customers rate us

Not only have Alan Boswell Group got us more comprehensive cover, but they have reduced our premium by a fifth!

Mr Dorling, Motor Trade Insurance

4.8/5 11503 reviews

Motor trade insurance in detail

Public liability

Aside from customer's slips, trips, and falls, this would cover you for liability arising out of your everyday activities e.g. defective workmanship, faulty goods and services.

Business interruption

In the event of certain claims (e.g. fire) you would be able to claim for loss of earnings and/or additional costs to relocate your business temporarily to ensure continued operation.

Property damage

Damage to your business premises and relevant fixtures and fittings.

Wrongful conversion

Cover for incorrect HPI and Experian checks for vehicle sales.

Portable tools

Loss or damage to tools while in use, both on and off premises e.g. diagnostic equipment.

Road risks

Cover for own vehicles, customers’ vehicles, and loaned vehicles while being driven.

Damage to customers' vehicles

Covers customers' vehicles damaged while in your care e.g. theft, fire.

Customers’ loads

Cover for commercial customers’ tools and equipment in your care.

There are a multitude of covers available and our experienced staff are there to support you with your business insurance requirements.

Some of these covers are only added when requested, or if they are added may have limited cover, and it is important when you compare motor trade insurance quotes you ensure you are comparing them on a like-for-like basis.

It is essential the correct ownership of business and personal vehicles is declared to ensure the right cover is in place e.g. director's vehicles are often not covered unless specifically noted.

Ensure all motoring claims and convictions are advised, as failure to do so could invalidate your business’ insurance.

All business activities, no matter how minimal, must be declared to ensure the correct cover is obtained.