Motor Trade Insurance

There are no limits on the vehicle numbers.

Motor Trade Insurance policies will generally have an Indemnity Limit under the Road Risks section, which controls the maximum value of any one vehicle being driven on the road.

Yes, Motor Trade Insurance is available for many types of businesses that buy, sell, repair, service or move vehicles. This includes car dealers, mechanics, mobile traders, valets, recovery operators and part-time motor traders. Insurers will usually ask about your experience, the type of work you do, and whether you have business premises before offering cover.

Motor Trade Insurance policies generally cover drivers to drive any motor vehicle that is the property of the Policyholder or in their custody or control for Motor Trade purposes.

Motor Trade Insurance does not always include tools in transit as standard, but this cover can often be added. Tools-in-transit insurance protects equipment while it is being carried in a vehicle or used away from your premises, which is important for mobile mechanics, valets, and traders working at different locations.

Road Risks cover is not available as a standalone policy.  SEIB’s Motor Trade Insurance is designed for full-time motor traders operating from their own business premises, such as a workshop, garage or unit. Instead, it is provided as part of a comprehensive Motor Trade Insurance package, which also includes Material Damage and Liability cover.

If you’re looking to save money on your Motor Trade Insurance, always remember to check the interest rates on any direct debit facility a broker or insurer may offer. It’s also worth checking whether any administration fees will apply at any stage.

Motor Trade Insurance works by allowing you to insure your business activities, rather than individual vehicles. Instead of insuring each car separately, your policy provides cover for vehicles that are in your custody or control for motor trade purposes, subject to the terms and limits of the policy. This flexibility is one of the key reasons Motor Trade Insurance is essential for anyone regularly driving or handling vehicles as part of their work.

The cost of Motor Trade Insurance will depend on the level of cover required and the nature of your business. Premiums are usually based on factors such as the type of work you carry out, the number of drivers, the vehicles involved, and whether you need Road Risks only motor trade insurance or a combined motor trade insurance policy with wider cover. The best way to find the cost of Motor Trade Insurance is to request a quote based on your business needs.

Two key cover components of a Motor Trade insurance are a legal requirement, these are Road Risks cover (Road Traffic Act 1988) and Employers’ Liability cover (Employers’ Liability (compulsory insurance) Act 1969). Additionally, Engineering Inspections are an essential aspect of ensuring Plant and Machinery are safe to use. It is a statutory requirement that certain items of equipment and plant are inspected.

Motor Trade Insurance is a specialist type of business insurance designed for people who work with vehicles as part of their trade. This includes buying, selling, repairing, servicing, storing or moving customers’ vehicles. Unlike standard car insurance, this type of policy covers multiple vehicles rather than one named car. It can be tailored to reflect how your business operates – whether you work from a garage or from home. Motor Trade Insurance can also be combined with other business covers, such as public liability or tools insurance, to provide broader protection for your day-to-day activities.

Wrongful Conversion cover protects you against loss following the purchase of a vehicle from someone who is not the true owner.

Motor Trade Insurance policies will generally offer options on either selecting Named Driver or Any Driver cover, depending on the size of the business.