Motor Trade Insurance Explained

If you work in the motor trade then you’ll need to get cover for your business for risks such as accidents, liability claims and theft/loss of tools/cash etc.

Motor trade insurance will provide cover for these risks and allow you to operate your business legally and with peace of mind.

Below is a guide to motor trade insurance that explains the different types of cover available.

Types of motor trade insurance

  • Road risks – Road risks insurance is something every motor trade business must have. It will enable to work on and transport customer vehicles as required. You can choose from third party only; third party, fire and theft or fully comprehensive cover.
  • Public liability insurance – Public liability insurance is a must when you run a motor trade business. Liability claims could come from a customer or member of public and could potentially be devastating if you don’t have the right cover in place.
  • Employers’ liability insurance – If you have employees then you’re legally obliged to have employers’ liability insurance of at least £5 million. You can get this included in your policy with any reputable insurance provider.
  • Legal expenses – In addition to getting cover for liability claims you can also get legal expenses including in your policy. This is very handy if you want to fight a liability claim in court – something that can become expensive very quickly.
  • Part time traders insurance – If you only work in the motor trade on a part time basis then you can get a part time motor trade insurance policy that covers you only for the period of time you require.

Saving money on motor trade insurance

  • Get a lot of quotes – Getting a lot of quotes is essential if you want to save money on motor trade insurance. When you have quotes from many different insurance providers you can easily compare them to each other and choose the one that offers the best value for money.  You can get traders insurance at
  • Pay annually – Another way to save money on motor trade insurance is by paying for the policy annually. Most insurance providers will give you a good discount for doing this.
  • Make your premises secure – If you get a combined motor trade insurance policy that also covers your premises then insurance providers will certainly take how secure it is into account. Therefore you should take whatever steps you can to improve security if you want to save money.