Motor Trade Insurance

Insurance for the Motor Sector from Sills Insurance

Motor Trade Insurance.

A cambelt change in Coningsby or a complete spray job in Skegness, sometimes not everything goes to plan, a fire in the workshop, the theft of a customer’s vehicle, or an unfortunate accident on the road, having Motor Trade Insurance in place will provide vital protection if things go wrong, paying claims, so you don't have to.

  • Own and customers' vehicles whilst in your custody or control
  • Business premises and contents cover, from buildings to ramps to compressors.
  • Protection against allegations that you have been negligent when working on a customer's vehicle.
  • Comprehensive Road cover for business and customers vehicles


Looking for Motor Trade Insurance?

Our specialist motor trade team are here to help and advise with bespoke covers needed to protect you and your business - NOT the covers you do not need as often given in "off the shelf" online packages.

Garage Sales, Garage Repair Shops, MOT Test Centres and Bodyshops, we have the covers you need.

Call us on 01522 527232 or simply complete the enclosed form and a member of our team will get back to you.


Please fill in your enquiry information below and one of our Sills Insurance Team will contact you by return.

What is Motor Trade Insurance?

Motor trade Insurance is a particular type of insurance that covers the needs of those in the motor trade, such as service and repair garages, body shops, and car sales.

Many of the covers provided are unique to the industry. For example, it covers customers' vehicles whilst in a trader's possession; Road Risks insurance allows employees to drive vehicles owned by the business as well as customers' vehicles for test drives and for vehicle sales businesses, for demonstrations to potential purchasers.

The liability insurance sections of a Motor Trade Combined Insurance policy can be pretty unique, too, essential covers such as Defective Workmanship and Sales Indemnity, all crucial insurance for those in the motor trade.

Various types of motor trade insurance policies are available; in its simplest form is Road Risks Insurance only, this type of insurance is like a private car policy but extends to allow driving of your customer's vehicles, at the opposite end of the scale cover is provided for the larger motor trade business such as car dealers and car supermarkets which can encompass many different types of cover.

Insurance policies for a motor trader are ideal, the cover is provided all under one policy so you don’t have to buy separate policies for vehicles, liability, and property, which would be tedious.

What cover does a motor trade policy provide?.

If you own the building you work from then it must have protections against all types of damage such as fire, flood, storm damage or even damage by theft or malicious damage.

If you are just a tenant, you still need certain protections, like if you owned it. Suppose you put your own mark on the premises, such as building a reception area and adding offices and staff areas, CCTV and other Alarm Systems. In that case, these are called tenants improvements that all have value and need replacing should there be a claim.

A motor trader might have specialist plant and equipment that need insurance cover, vehicle lifts, compressors, tyre fitting machinery, MOT lanes, and spray booths, to name just a few, these are important items of business equipment, and a motor trade policy is designed to cater for these.

Just like your Plant and Machinery, Portable hand tools are essential when repairing vehicles, whether they are employees' personal hand tools or the business's own. They might have been built up over many years and have a high value; these, along with toolboxes, must be covered correctly, with vehicles increasing run by computers vehicle diagnostic equipment is an essential part of everyday garage life. The effects of tool loss can be devastating, so your cover needs to be correct.

At Sills, we have a detailed understanding of your garage equipment; let us help you get your cover right.

Motor Traders Liability insurance.

Unfortunately, as a Motor Trader, you can be exposed to allegations of negligence, people come to your premises and be injured, that wet reception floor can easily become slippery. Public Liability Insurance will ensure that you are fully defended and if it is found that you have been negligent the policy will pay compensation to the injured party too.

Damage to a customer’s vehicle, remember that service with the new cam belt and tensioner that let go, the damage can be catastrophic, and that's why Defective Workmanship Insurance cover needs to be in place should you damage the vehicle you are working on; just like Public Liability, it will provide that important legal defence and compensation.

Your employees can become injured or ill in their course of work, whenever you employ people, even voluntary workers and people on work experience are still classed as an employee. Employers’ Liability is a Legal requirement, meaning you must have cover in place by Law. It protects the business from potentially expensive injury claims.

Road risks insurance, essential motor trade cover..

Running a motor trade business would be quite difficult if you couldn't drive your own or customers' vehicles wouldn’t it?

A road risks insurance policy will provide the legal cover for you and your employees to drive vehicles on the road; whilst comprehensive Road Risks insurance is the norm, third-party fire and theft and third party only are still available.

It's essential that employees drive vehicles, too; those test drives, vehicle collection and delivery, and sitting by a prospective customer deciding whether to buy a vehicle, all these activities are covered under one policy.

What other covers will a motor trade policy provide?

Although money cover is now somewhat old-fashioned, most customers paying by card means that cash isn't something you have much of in your business. If you sell cars though, it might be a different story; some people still pay in bundles of cash. If this is the case it’s certainly worth considering Money cover.

Accidents Happen, Accident insurance can be one of those covers that can be overlooked. It is an important consideration, particularly as a sole trader. What would you do if you had an accident, one of your employees could accidentally injure you, running over your foot might put you out of action for a few weeks, what then, there is no cover as standard, you can't be there to run your business.

Loss of MOT Loss of Licence can be covered, it will pay if your license is withdrawn or suspended by the Department of Transport resulting in interruption to the business. It will also provide some legal expenses too should there be an appeal against the order.

Sometimes when you buy a vehicle to sell that could have been stolen, the rightful owner can come forward and demand the car back. Wrongful Conversion insurance is available on a motor trade policy covering these types of eventualities.

Other covers are available, giving your business protection, Goods in Transit and Vehicles in Transit, and Commercial Legal Expenses insurance.

Frequently Asked Questions.

A motor trade Road Risk insurance covers only those employed or under a contract of service, to drive customers or business-owned vehicles in connection with the business.

Suppose the policy covers any employee for business use. In that case, it's essential to understand that it refers to "any employee" and not "any driver"; this is one of those often-misunderstood areas of motor trade insurance.

A motor trade insurance policy will usually allow any vehicle to be driven in connection with the business, a customer's car for test driving, or a vehicle owned by the business. A typical example of a car that wouldn't be covered would be an employee's own vehicle unless that vehicle was being repaired by the company.

The sum insured you choose for customers' vehicles on a motor trade policy should adequately reflect the maximum value of vehicles you would have in your possession at any time, both day and night.

As a trader, you may have to drive customers' vehicles that are not taxed; a Trade Plate will allow you to drive those untaxed vehicles in connection with your business. A car dealer wouldn't tax all the vehicles in stock; that wouldn't be cost-effective and an admin nightmare.

For example, a trade plate would be used for demonstration purposes, taking a vehicle for an MOT, or test drive. A trade plate isn't the answer to everything; there are restrictions on their use which can be found HERE

Yes, but depends on the insurer; not all insurers allow the trader to update their own MID. Usually, an insurer will provide login details to their portal when available - speak to us about your preferences concerning the MID.

Usually, no claims discount is earned on a motor trade policy, just the same as would be earned on a private car. It is important to note though some insurers will only provide the details of claims over several years and not actual no claims discount in years.

The most crucial point of any motor trade policy is that the cover is for items owned by the business, which means they have been purchased by the company or firm, and there is proof that money has flowed through the business.

Getting your motor trade insurance through Sills..

Motor trade insurance is a complex set of covers, it provides comprehensive cover for traders, so it’s very important that you deal with knowledgeable experienced people. Dealing with specialist in the motor trade sector means that you are obtaining covers that meet your own business requirements, they’re not just a package of covers, the policy is built around your business. Wherever your business trades from, Sills Insurance Brokers are based in the heart of Lincoln, serving Lincolnshire, the East Midlands, and the UK for motor trade insurance.