Insurance for motor traders FAQs

What is motor traders insurance?

Motor traders’ insurance provides protection against a wide range of risks likely to be encountered by anyone running a motor trading business.

This includes the motor insurance which is legally required to drive vehicles for trade purposes, insurance providing indemnity against the various liabilities likely to be faced by your business and the premises, tools, equipment and stock of cars you possess.

What or who is a motor trader?

Various businesses are officially described as motor traders, including:

  • motor manufacturers, dealers and repairers;
  • businesses involved in the collection and delivery of vehicles;
  • manufacturers of vehicle trailers;
  • motor accessory fitters; and
  • car valeting services.

If you are engaged in any of these, or related activities, you are likely to qualify as a motor trader and may apply to the Driver and Vehicle Licensing Agency (DVLA) to use trade plates on the vehicles in your possession.

How does insurance for motor traders differ from regular motor insurance?

Anyone driving a motor vehicle on the roads or using it in any public space needs motor insurance – and continuous insurance enforcement rules apply this to vehicles that are kept off-road (unless they have a Statutory Off Road Notification or SORN).

Although an exception is granted to motor traders of the need for a SORN, they are still bound by the law in respect of insurance.

Specialist motor traders insurance, however, does not identify each vehicle individually by its registration number, but can provide the necessary insurance cover, for any named driver, for any vehicle driven for trade purposes.

Just like regular motor insurance, insurance for motor traders may provide the necessary legal requirement for third party cover only, extend to third party, fire and theft or offer fully comprehensive cover.

How can I save money on motor trade insurance?

Whatever the size of your business, and even though some level of motor traders insurance is essential, it is still possible to save money on motor trade insurance.

To do so, pay particular attention to some of these tips and suggestions:

  • identify to your insurer as closely as possible the types of vehicle in which you are trading (higher performance and specialist vehicles, may attract higher than normal premiums);
  • premiums may also be determined by the number of named drivers on the policy, so be sure to delete those who no longer work for you and add those who are starting;
  • remember that motor traders’ insurance may also attract valuable no claims discounts – so careful driving and the avoidance of claims may reap their own

Can I buy motor trade insurance online?

Some specialist providers may make it possible to buy your motor trade insurance online.

However, many providers may offer advice and guidance on any of your questions relating to this specialist type of insurance. So you may want to open the way to person to person conversations about the precise form of motor traders insurance to suit the particular needs and requirements of your business.

Got something to say? Go for it!