Motor Insurance

Motor Trade Insurance Policies In The UK

A professional with a van

In this article on motor trade insurance, we examine:

  • What motor trade insurance is
  • The cost of motor trade insurance
  • Who can get motor trade insurance

What is motor trade insurance?

Motor trade insurance covers the needs of businesses which offer a money-making service related to vehicles. This ranges from garages which repairs cars to those offering valeting services. The size and location of the business and your degree of involvement (whether full- or part-time) is irrelevant.

It is illegal to drive in the UK without  some form of vehicle insurance

It is illegal to drive on UK roads without some form of vehicle insurance in case of an accident. However, vehicle-related businesses can’t be covered by private motor insurance because these policies specify both a named vehicle and a named driver. Therefore, motor trade insurance allows the designated driver to drive any vehicle as long as it’s for the needs of the business.

How much does motor trade insurance cost?

It is impossible to give a figure for the size of motor trade insurance premiums. Insurers will take into account a number of factors to draw up a tailor-made policy and calculate the cost of your premiums. These factors include both your personal circumstances and your type of business as well as the amount of cover you require.

Personal circumstances

Before giving you a quote, insurers will need to know some personal details about you such as:

  • Age, location, whether you work part/full-time, your work experience, the size/location of business premises (if any), etc.
  • Your driving history such as whether you have a clean driver’s licence and whether you have any convictions in the past 5 years
  • Your insurance history and if you have a no-claims bonus

Amount of cover

You can specify how much road risk cover you take out and the policies are the same as those for private car insurance:

  • Third party
  • Third party, fire and theft
  • Comprehensive

A professional is shown in their vehicle

Apart from the amount of cover you have for vehicles, you are legally required to take out public liability insurance if you are running a business. This could include:

  • Public liability insurance – this is compulsory if you have a showroom, garage, etc. which is regularly visited by members of public (in case of an accident)
  • Employee liability insurance – this is mandatory if you employ someone else in the event they suffer a work-related injury/accident on your business premises
  • Product, sales & service indemnity in case of defective workmanship and/or faulty parts

Many insurers will allow you to combine your road risk cover with your public liability policy to create a combined motor trade insurance policy. Not only can this work out cheaper, but you can also add extra cover for the loss, damage or theft of your business premises and/or tools.

Can anyone get motor trade insurance?

Motor trade insurance isn’t a way to get cheapest motor insurance for your and your family’s vehicles as a group policy. In order to qualify for a policy, you have to be able to prove to the insurance company that you offer a vehicle-related service which is a money-making venture even if you work part-time fixing up cars or motorbikes. You will, therefore, need to supply evidence such as invoices, receipts and/or tax documents.

About the author

Thomas Henderson

Thomas worked as a consultant in personal finance in the UK for 18 years. He has found a passion in sharing his experience on

Thomas also takes pleasure in woodworking, reading and observing stock market trends.

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