What Are The Best Motor Trade Insurances In The UK?

If you have a business that buys, sells or services cars, you'll need motor trade insurance. But it's a complicated area, and different businesses' needs are very diverse - a car valeting firm won't need the same insurance as a big Merc dealership.

How can you make sense of this complex area?

We've broken it down clearly for you so that you can easily see the types of insurance involved and what you need for your business to be covered. We'll also talk about other kinds of insurance that can make sure your business is protected. Stay tuned!

What are the best motor trade insurers?

If you want the best motor trade insurance you'll need to speak to a specialist insurer like the names we've suggested below.

The price of your insurance will of course depend on your activity, the number of vehicles involved, the number of drivers etc.

It's worth shopping around, just as it is when you buy personal car insurance. That includes shopping around at renewal time, as well as when you first get your motor trade insurance. You can get cheap motor trade insurance but you may need to put a little effort into ensuring you've got the best quote that's available.

You will find below a list of important UK insurers offering motor trade deals.

Allianz motor trade insurance review

Allianz is a massive, international insurer operating on nearly every continent in the world. Founded in the 1890s in Germany, the UK HQ is based in Luton and Allianz employs over 500 people across the country.

Allianz offers two levels of coverage for traders: Motor Trade Select for medium to large businesses and Complete Motor Trade for small to medium-sized businesses. Allianz includes EU coverage as standard and also offers loss of MOT and suspension of license coverage.

Swinton Insurance motor trade insurance review

Founded in 1957, Swinton has over 60 years of experience in motor insurance and boasts a whole department dedicated to motor traders' policy insurance. Swinton's primary focus has always been UK vehicle insurance and therefore they bring a wealth of specialist knowledge to the table.

Swinton is a broker rather than an insurance provider. This means that they use their experience and knowledge of the market to help you find the best deals.

Autonet motor trade insurance review

Autonet has extensive experience in arranging motor trade insurance and uses a select panel of major insurers for its trade policy insurance. Autonet offers coverage for full-time and part-time traders and also offers various add-ons to protect equipment and employees' tools.

TradeX motor trade insurance review

TradeX has built a large portfolio of motor trade customers. It offers trade car insurance online quotes - though they'll ring back to check the details before making you a firm quote. TradeX offers additional road risk insurance to cover your employees when they are driving on business.

The Insurance Factory motor trade insurance review

The Insurance Factory specializes in 'difficult' areas of vehicle insurance such as campervan and taxi insurance. It offers motor trade insurance for both service firms and dealerships.

Ageas motor trade insurance review

Ageas is an international insurance company founded as AG in 1824. They have over 4 million customers in the UK and also provide home and car insurance. Their customer lines are open 7 days a week 24/7. You can buy Ageas motor trade insurance through a broker. Claims can be made through their online portal using a simple form.

What is motor trade insurance?

Motor trade insurance is a form of business insurance for companies that repair vehicles and trade them. It is a composite type of insurance that can include many extras.

In its most basic form, motor trade insurance will cover your liability towards your employees and insure all the vehicles that are used by your business. Typically, it will cover the vehicles against loss, damage and theft. Motor trade insurance can be expanded with many optional add-ons that protect your brick-and-mortar buildings, your reputation, your liability towards clients and much more. Make sure to discuss with a broker to find the right package for you, or use our online quote comparison tool at the top of this page to find the right option.

Who is motor trade insurance for?

While we often think of car trade insurance as being aimed at dealerships or garages, in fact, a motor trade insurance policy could be useful for any of the following types of business:

• a car valeting business, which sometimes needs to move customers' cars from one bay to another
• a vehicle restorer who buys refurbishes and sells vintage cars
• a mobile mechanic who needs to drive customers' cars in order to diagnose faults or to ensure they're working correctly once repaired
• a valet parking service ('car jockey insurance')
• a scrap yard or breaker's yard taking possession of write-offs and scrap cars
• a windscreen fitter
• a breakdown recovery service
• a vehicle delivery firm
• a tyre fitting service
• a repossession firm (eg bailiffs)
• any business that has 'care, custody and control of customers' cars (ie they've left you the keys - their car is no longer covered by their own insurance).

The type of trade insurance car dealers need can be very different from that required by a mobile car valet working out of a van. That's why trade car insurance in the UK is usually arranged with specialist brokers so that you can get exactly the trade insurance quote you need.

Do you need motor trade insurance?

You are required by UK law to have employer's liability insurance if you have at least one employee. This covers compensation due to employees if they are injured while working for you.

If you are operating a business that requires employees to drive vehicles then these vehicles must have road risk insurance. If you have members of the public visiting your offices (that is, anyone not covered by employer's liability insurance) then we strongly advise you to have public liability insurance. This covers compensation if a member of the public is injured or their property is damaged in your office.

For any service-based business then professional indemnity insurance could be a smart investment. If a client claims that you have given them negligent advice that has caused them to lose money or that the service you provided was inadequate then professional indemnity insurance will protect your business from having its reputation damaged.

What kinds of motor trade insurance can I buy?

There are two kinds of motor trade insurance:

• road risk, which covers you driving customers' cars on the road, and
• combined insurance, which also covers your stock, liability insurance, and business premises.

With road risk insurance, as with personal car insurance, you can select three different levels of coverage.

1. third party only, the legal minimum,
2. third party, fire and theft, and
3. fully comprehensive.

As a trader, if you crash a customer's car - particularly if it's a nice one - you want to be covered. If you're only insured for third-party risks, you'll be legal to drive - but you could end up heavily out of pocket if you have to pay out of your own pocket to replace a top-of-the-range BMW or Mercedes, or a vintage Bentley! For most motor traders, fully comp is the right way to go.

What does motor trade insurance cover?

Motor trade insurance works like a combination of business insurance and vehicle insurance. This means that it protects the vehicles used in your business, the physical buildings of your business and your liability towards your employees and your clients.

Every insurance policy is tailored to the specific needs of the purchaser. You will discuss with the broker or representative to work out which coverage is essential to you.

Coverage	What it protects
Accidental damage	This will cover accidental damage caused to a client's property
Road risk insurance	This covers your liability for the vehicles owned or being worked on by your business and is mandatory
Employer's liability	This covers compensation if an employee is injured or their property is damaged
Product liability	This will cover expenses if someone takes legal action against your business
Public liability	This covers compensation if a member of the public (that is anyone not covered by employer's liability insurance) is injured or their property damaged

What does motor trade insurance not cover?

Motor trade insurance typically only covers fleet vehicles, meaning the ones used by your business for work. Any vehicles driven by employees for personal use, for example, to commute, will not be covered.

Always remember when buying insurance to read your contract carefully and twice, you should pay particular attention to the list of exclusions to avoid any unpleasant surprises later on. Most basic motor trade insurance policies, however, will not cover the following.

How many vehicles are covered by my motor trade insurance?

Trader's car insurance is very flexible. You can decide how many vehicles should be on the policy.

Car insurance on a trader's policy, unlike personal car insurance, has two ways of arranging cover depending on how long you keep a car under your control.

• If a car is in your control for fewer than 14 days or less, for instance, while it's under repair or when you're driving it to deliver to a customer, you don't need to register it on your policy. You are automatically covered for all vehicles up to the limit stated in your policy.
• If you keep a car for 15 days or more you'll need to register it on the MID (Motor Insurance Database) or tell your insurer so that they can do so. This applies to your own business vehicles, cars being held for sale, and cars that are being restored.

Obviously, the more vehicles that are insured under your policy, the more you'll pay.

Does motor trade insurance cover any driver?

A motor trader's insurance can be issued to cover 'any driver'. However, because the insurer doesn't know who will be driving, and how good a risk they represent, the insurance could be quite expensive.

A better way of covering staff for most businesses is to add them as named drivers to the policy. That way, the insurer knows who is driving, and you will get a cheaper trade insurance quote.

What vehicles can I drive with motor trade insurance?

You will need to specify what kind of vehicles you need to drive when you apply for your motor trade insurance.

For instance, a car valeting business might only need cover for cars. However, a garage might need cover for a breakdown recovery vehicle or HGV.

You will be able to drive your own business vehicles and any other vehicles that your business is involved in servicing or holding for resale. (However, private use of business vehicles may be excluded by the policy.)

What is a road risk policy?

A road risk policy is one that covers you only for driving cars on the road - whether that's customers' cars or your own business vehicles, or cars you're holding for resale.

It won't insure your premises, your stock, or your tools. It won't insure you against professional liabilities or provide employer's liability cover.

But if you damage a customer's car while taking it around the block to test the new clutch you've fitted, or if your newly restored Aston Martin skids on ice and hits a wall, you'll be covered (if you've taken out fully comprehensive insurance).

What is combined motor trade insurance?

Combined motor trade insurance is a single policy that provides both road risks cover and other types of business cover, such as public and product liability, employer's liability, and insurance for your premises and tools.

If you have a garage, with a couple of ramps, a lot of tools and equipment, and a number of employees - maybe a receptionist as well as a recovery driver and a couple of mechanics - then combined insurance makes very good sense.

On the other hand, if you're a sole trader with a weekend car valeting business, you might decide just to run with a basic road risks package.

Combined motor trader insurance can include:

• Road risks cover.
• Employer's liability cover if you have any employees. This is required by law - you can be fined up to £2,500 a day if you don't have it, and you can even be fined for not displaying your insurance certificate at your business premises.
• Public liability cover. This protects you against claims made by members of the public. For instance, if someone slips on your forecourt - you're covered.
• Product liability cover. This protects you against failure of parts - for instance, if you fit new parts which turn out to be defective.
• Buildings insurance for your premises.
• Business interruption insurance, which covers you for loss of earnings if your business is forced to close by an accident affecting your premises.
• Material damage - covers you for any damage to stock vehicles or equipment.
• Professional indemnity insurance. This might be useful if you're dealing in classic cars, and give valuations - if a customer loses out on a deal and claims you gave them bad advice, you're covered.

Is my own car covered?

If you use your own car for the trade, yes. But your policy might exclude the private use of business vehicles.

If you want to have personal use of business vehicles covered for yourself and your employees, that is possible, but you might need to ask specifically - and check when you get the cover note that it is included.

If you also own a car that is only for personal use, no, it won't be covered by a trader's insurance policy - you'll need to get separate personal car insurance. And if you want to drive your partner's car, or one belonging to someone else in your family, you'll need to be added to their policy as a named driver.

How to find a cheap motor trade insurance quote?

You may be able to save money on motor trade insurance by fulfilling certain criteria, used by insurers to calculate premiums.

The best way to find cheap motor trade insurance is to use online comparison tools. At the top of this page, there is a free-to-use comparison tool which will allow you to compare the protections offered by leading insurers.