Motor trade fleet insurance for dealers, garages and mechanics
Cover for driving stock cars, customers' vehicles and your own business vehicles, with premises cover often arranged alongside. Fill in one short form to be put in touch with specialist brokers who arrange motor trade insurance for UK traders.
- Road risks for stock and customer cars
- Demonstration drives and collections
- Premises and tools often combined
Motor trade fleet insurance in brief
Motor trade fleet insurance is cover for a motor trade business to drive vehicles in its care, such as stock for sale and customers' cars in for work, without insuring each vehicle separately. The core of most policies is road risks cover, which lets named drivers use any qualifying vehicle on the road for the business, rather than listing every registration as an ordinary fleet does.
Traders who also run a set of their own vans or recovery trucks sometimes keep those on a separate schedule, and a broker can explain how the two fit together. Garages whose vehicles are mainly service vans may also find van fleet insurance for trade vans a useful comparison.
Who it is for
Which motor trade businesses need this kind of cover?
Anyone whose work means driving vehicles they do not own, or owning vehicles they are trying to sell. Insurers usually want to see that the business is a genuine motor trader, whether full time or part time.
Road risks or combined
Road risks, combined motor trade or an ordinary fleet: how they differ
Motor trade cover comes in a few shapes. The right one depends on whether the business works from premises, how many vehicles pass through its hands and whether it also runs vehicles of its own.
| What is covered | Road risks only | Combined motor trade | Ordinary fleet policy |
|---|---|---|---|
| Driving stock vehicles on the road | Yes | Yes | Only listed vehicles |
| Driving customers' vehicles | Yes, for trade purposes | Yes, for trade purposes | Usually not |
| Demonstration drives | Often, with conditions | Often, with conditions | No |
| Customer vehicles parked on site | No | Usually | No |
| Buildings, tools and equipment | No | Usually, as chosen sections | No |
| Your own vans and recovery trucks | Sometimes | Sometimes | Yes, listed by vehicle |
These are typical patterns only. What each section includes, and the limits that apply, vary between insurers.
On the road
When is a trader covered to drive a vehicle it does not own?
Road risks cover is tied to trade use. Driving a customer's car to the MOT station is usually covered; borrowing it for a weekend away usually is not.
Vehicles for sale
Cars and vans the business owns as stock, driven to auctions, preparers and buyers.
- A limit usually applies to the value of any one vehicle
- Higher value or prestige stock may need agreeing first
- Some policies allow limited personal use of stock
Vehicles in for work
Customers' vehicles collected, road tested and returned as part of a job.
- Road tests usually need to be for the job in hand
- Collection and delivery is often included
- Damage while being worked on is a separate question
Test drives by buyers
Potential buyers driving stock, with or without someone from the business beside them.
- Accompanied drives are the usual starting point
- Unaccompanied drives often carry extra conditions
- Checking the buyer's licence is commonly expected
Trade plates
Do trade plates replace motor trade insurance?
No. Trade plates let a motor trader take an untaxed vehicle on the road for set trade purposes, such as moving it to a workshop or for a road test. The vehicle still needs insurance while it is driven, and insurers usually ask whether the business holds trade plates and how they are used.
- Who drives on them: Only drivers named on the motor trade policy, within its age and licence terms.
- What they are used for: Trade journeys only, not private trips in a vehicle carrying the plates.
- If they go missing: Lost or stolen plates are worth reporting promptly to the issuing office and the insurer.
Insurers vary in how they treat vehicles on trade plates, so it is a good point to raise with the broker.
Premises cover
What can a combined motor trade policy add beyond the road?
Many garages and dealers combine road risks with cover for the premises and the vehicles parked there. This is often where the biggest differences between quotes appear.
- Customer vehicles on siteCars parked in the yard or workshop while waiting for work, often limited to a total value.
- Faulty workmanshipSome policies cover damage caused by a repair that goes wrong, though limits and exclusions vary.
- Buildings, tools and equipmentRamps, diagnostic kit, hand tools and the building itself, if the business works from premises.
- Liability to the publicInjury to customers and visitors on site, often included in a combined policy or arranged through public liability insurance.
- StaffCover for the business if an employee is hurt at work, usually through employers' liability insurance when there are staff.
- Stock on the forecourtTheft or damage to stock vehicles while parked, usually with conditions on keys and security.
Pricing
What affects the price of motor trade insurance?
Motor trade cover is priced on the business as much as on the vehicles. These are the points brokers usually ask about first.
- The type of tradeSales, servicing, bodywork, valeting or recovery are each viewed differently.
- Full or part timeSome insurers accept part-time traders working from home; others want premises.
- Named driversAges, licence history, convictions and past claims for everyone driving.
- Vehicle value limitsThe value of the most expensive vehicle likely to be driven or kept.
- Key and stock securityKey safes, locked compounds, lighting and cameras at the premises.
- Proof of tradeEvidence of trading such as a website, premises, invoices or a business bank account.
How it works
One quote form, specialist fleet brokers
Insure Fleet is an information site, not an insurer or a broker. We link you to MyMoneyComparison.com, a comparison service that gives businesses a gateway to brokers who arrange fleet insurance every day.
Start your quote
Get my motor trade quote takes you to our partner, MyMoneyComparison.com.
Describe the motor trade business
The form asks about the vehicles, the work they do and who drives, so you can be matched with a specialist fleet broker.
Compare and decide
A broker contacts you with options, subject to insurers' acceptance criteria. There is no obligation to buy.
Before you buy
Questions worth asking about any motor trade policy
Two motor trade quotes can look alike and still treat customers' cars very differently. These points are worth going through with the broker.
- What is the limit for any one vehicle?A prestige car may sit above the standard limit.
- Are unaccompanied test drives covered?Many policies set strict conditions or leave them out.
- Can drivers use stock vehicles privately?Some allow limited personal use; others allow none.
- Is collection and delivery included?Moving customers' cars to and from the garage varies.
- Are customers' cars on site covered?Usually only on a combined policy with premises cover.
- Is faulty workmanship included?Damage after a repair is often a separate section.
- Who can drive under the policy?Named drivers, age limits and part-time staff all matter.
- Are recovery trucks on the same policy?Heavier vehicles may need their own schedule.
FAQs
Motor trade fleet insurance questions
What is motor trade fleet insurance?
Motor trade fleet insurance is cover for a motor trade business to drive vehicles in its care, such as stock for sale and customers' cars, for trade purposes. It is usually built around road risks cover, with cover for premises, tools and customer vehicles on site often added.
What does road risks cover mean?
Road risks is the part of a motor trade policy that covers named drivers using qualifying vehicles on the road for the business. It does not usually cover the premises, tools or vehicles while they are parked on site.
Can I insure my own business vans on a motor trade policy?
Sometimes. Some motor trade policies include a set number of the business's own vehicles, while others need them on a separate schedule. Breakdown and recovery firms with heavier trucks often look at lorry fleet insurance for those vehicles.
Are customers allowed to test drive my stock?
Many policies allow test drives, usually with conditions such as checking the driver's licence and a member of staff going with them. Unaccompanied drives often carry extra conditions or need to be agreed with the insurer first.
Can I lend customers a courtesy car on a motor trade policy?
It depends on the insurer. Some motor trade policies cover customers driving a courtesy car while theirs is being repaired, and others leave it out. Businesses that charge for vehicles on hire are closer to self-drive hire fleet insurance.
Can a part-time trader get motor trade insurance?
Often, yes. Some insurers offer road risks cover for part-time traders working from home, provided they can show the business is genuine. A trader who only buys the odd car for personal use is not usually accepted.
Can staff with points drive under a motor trade policy?
Usually, depending on the points and the insurer, and every driver needs to be declared. Garages with several drivers carrying convictions may find options through fleet insurance for convicted drivers, alongside the motor trade cover.
Does Insure Fleet sell insurance?
No. Insure Fleet is an information site and an affiliate of MyMoneyComparison.com, a comparison service that gives businesses a gateway to specialist brokers. When you start a quote you continue to MyMoneyComparison.com, and we may be paid a small commission if you are matched with and speak to a broker.
Ready to get your motor trade business covered?
One form, specialist motor trade brokers, no obligation.