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Motor trade insurance

Motor trade cover for full-time and part-time businesses

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  • Specialist cover from our trusted partner Quote Me Today

  • Fill out a short quote form and request a call back to get a quote

What is motor trade insurance?

Motor trade insurance, or traders insurance, covers your business when your employees drive or work on customer vehicles, as well as company-owned vehicles. It’s a must-have if you and your employees repair, sell, or handle vehicles in any capacity. This is different to a business car insurance policy, which covers drivers who use their car for more than just social use and daily commuting.

What should I look for in motor trade insurance?

Flexibility is key. Look for policies that cover all staff - including new hires - so they can drive or work on vehicles without issues. Coverage varies between insurers, so check:

  • What’s included
  • The level of protection
  • Any exclusions

Even if you're not driving customer vehicles - for example, in mobile tyre services - motor trade insurance is still important.

Who needs motor trade insurance?

If you buy, sell, repair, valet, or service vehicles, motor trade insurance helps you to stay legally compliant.

It'll also protect your finances, because it covers damage to your commercial vehicles and any vehicles you work on.

This includes both full-time, and part-time traders, for example:

What does motor trade insurance cover?

Motor trade insurance protects vehicles in your care as part of your business. The exact cover depends on what you do, but here are the essentials:

  • Accidental damage cover - for example, might be useful if you run a repair garage. It means you’re covered for accidental damage caused to a customer’s vehicle.
  • Road risk insurance - is a legal requirement and makes sure that the vehicles under your care are protected. This includes your own vehicles as well as those awaiting repair.

Not enough? Well… depending on the policy you choose, you may also come across these cover options:

  • Employers’ liability - This is required by law if you have staff. Employers' liability covers claims from employees.
  • Product liability - This protects you if a faulty part you’ve supplied causes damage or injury.
  • Public liability - This covers legal costs if someone is injured on your premises.

What type of businesses does motor trade insurance cover?

The types of businesses that motor trade insurance covers typically includes: 

  • MOT test centres
  • Mobile mechanics
  • Car valeting and detailing businesses
  • Scrap yards
  • Car dealerships
  • Part-time motor traders
  • Vehicle import/export businesses

Is motor trade insurance the same as business car insurance?

No, motor trade insurance and business car insurance are not the same, but they do both relate to using vehicles for business purposes.

Motor trade insurance is a specialised policy for businesses that buy, sell, valet or repair vehicles.

Business car insurance is a standard car insurance policy with additional coverage for work-related driving.

Get a motor trade insurance quote

Or call 01227 285564

Get more affordable motor trade insurance

Finding the right motor trade insurance at the right price doesn’t have to be difficult. At Confused.com, we help you compare quotes from a wide range of insurers, so you can choose a policy that fits your business and your budget. Whether you're a part-time trader or run a full-time operation, there are ways to save – like tailoring your cover, increasing your voluntary excess, or only including named drivers.

  • Only pay for what you need - tailor your policy to match your specific business activities & avoid unnecessary extras. 
  • Consider upping your voluntary excess - a higher voluntary excess can lower your premium, but make sure it's still affordable if you need to claim.
  • Limit the number of drivers - adding only essential named drivers can help reduce your insurance costs.
  • Secure your business premises - insurers may offer discounts if your vehicles and equipment are kept in a safe location overnight.
  • Build a no-claims history - building up your no-claims bonus can lead to lower premiums over time.
  • Pay annually rather than monthly - opting for annual payments can be cheaper overall, as paying monthly for your insurance often includes interest or additional fees.

Compare motor trade insurance today and see how much you could save on your policy.

What our car insurance expert says

"There can be lots to consider when looking at trade insurance, and it might seem confusing figuring out what’s covered or what you really need. Like normal car insurance, every business is different and will need different requirements.

Our specialist and trusted partner Quote Me Today can help get your business covered without paying more than you should for things you don’t need."

Rhydian Jones - Confused.com Commercial Director
Commercial Director & Motoring Expert Confused.com logo

Frequently asked questions

How much is motor trade insurance? 

Motor trade insurance costs vary widely depending on a number of different factors like the number of vehicles covered, the business size, location, and driving history. On average, premiums can range from a few hundred to a few thousand pounds annually.

Can part-time traders get motor trade insurance? 

Yes – many insurers offer cover for part-time traders, as long as you can show it’s a genuine business, even if it’s just a side hustle.

Can I drive any car with motor trade insurance?

Motor trade insurance generally allows you to drive vehicles owned by your business for things like testing, repairing, or selling.

It doesn’t usually cover driving cars owned by other people or for personal use. Always check your specific policy details, as coverage can vary between insurers.

Motor Trade insurance is arranged and administered by Quote Me Today Ltd who are authorised and regulated by the Financial Conduct Authority No: 786619. Registered office, 2nd Floor 5-10 Sparrow Way, Lakesview International Business Park, Hersden, Canterbury, Kent, United Kingdom, CT3 4JH Registered in England and Wales, No: 04668665.