Motor Trade Insurance
As experienced motor trade insurance brokers, we work with insurers who understand the realities of the sector. Our role is to help ensure your motor trade insurance policy is practical, compliant and aligned with how your business actually operates.
Insurance for Motor Trade Businesses
Running a business in the motor trade brings a unique mix of operational, legal and financial risks. From handling high-value vehicles and managing customer expectations to employing staff and operating from specialist premises, exposure can change daily.
Motor trade businesses operate in high-risk environments where vehicles, customers, employees and third parties all interact. From used car dealerships and independent garages to valeting services and accident repair centres, no two businesses face the same exposures. This is why standard motor insurance is rarely suitable.
We arrange vehicle and car trade insurance for a wide range of operations, including car dealers, repairers, MOT garages, mobile mechanics, body shops and specialist vehicle services. Whether you trade full time or part time, if vehicles are central to your business, specialist motor trade insurance is key. Our approach focuses on how your vehicles are handled, who drives them, where they are stored and how your day-to-day operations work in practice.
Who We Work With
We can support motor trade businesses of a multitude of sizes, from sole traders to nationwide dealers. Our experience extends across traditional and specialist operations, including:
- Car dealerships and used car sales
- Garages, mechanics and MOT specialists
- Body shops and accident repair centres
- Valeting, detailing and car wash businesses
- Commercial vehicle repairers
- Breakdown and recovery operators
- Vehicle delivery and transport firms
- Windscreen and tyre fitters
- Classic car dealers and restorers
- Vehicle recycling and dismantling businesses
If your business is specialist or unusual, we are well placed to help. Over the years, we have arranged cover for many niche operations that fall outside standard underwriting models.
Motor Trade Insurance Covers to Consider
Employers’ Liability Insurance
Employers’ liability insurance is a legal requirement for motor trade businesses that employ staff, including mechanics, apprentices, valeters or administrative employees, for example. It can protect against claims for injury or illness arising from work activities. Given the physical and manual nature of motor trade work, claims can be serious, making adequate limits and clear employee declarations essential. Contact Us
Public Liability Insurance
Public liability insurance helps protect your business if customers or third parties suffer injury or property damage due to your activities. In motor trade environments, risks can include slips and trips, vehicle movements, workshop hazards or accidental damage to customer property, to name a few. This cover forms a core part of car trade insurance and is often required by landlords or clients. Contact Us
Buildings and Contents Insurance
Buildings and contents insurance is designed to protect garages, workshops and showrooms against events such as fire, flood, storm damage and theft. It can also cover office contents, specialist tools, diagnostic equipment and machinery essential to daily operations. Ensuring accurate rebuild and replacement values is vital to avoid underinsurance and protect your motor trade business fully. Contact Us
Stock Insurance
Vehicle stock insurance can cover cars held for sale, repair or storage against risks such as fire, theft or accidental damage. Cover can usually apply to vehicles kept on-site or at approved storage locations. Declaring accurate stock values and maintaining suitable security measures are often crucial to ensure claims are settled fairly under your motor trade insurance policy. Contact Us
Tools & Equipment Insurance
Tools and equipment insurance can protect the specialist tools and machinery that motor trade businesses rely on every day. Cover can be arranged to apply to items stored on-site, kept in vehicles or temporarily removed for work. Theft or damage to essential equipment can cause costly delays, making this an important part of a comprehensive motor trade insurance programme. Contact Us
Business Interruption Insurance
Business interruption insurance helps protect your income if an insured event forces your motor trade business to stop or reduce trading. Loss of premises, vehicle stock or essential equipment can quickly affect cash flow. This cover helps replace lost income and meet ongoing expenses while repairs or reinstatement take place. For more information read: Understanding Business Interruption Insurance Contact Us
Ready to protect your business?
Why Do You Need Motor Trade Insurance?
Motor trade insurance is not just about driving other people’s vehicles. If you have care, custody or control of customer vehicles at any point, their own insurance may not protect you so you need your own policy in place.
Beyond legal compliance, the right cover can protect your business against events that could disrupt trading or significantly impact cash flow. Vehicle damage, theft, liability claims or fire at premises can all result in serious financial loss without adequate insurance.
A well-structured motor trade insurance policy helps ensure your business can recover quickly when something goes wrong, rather than facing prolonged disruption or uninsured costs, which could impact the long-term viability of your business.
Cover for Dealers, Repairers & Vehicle Specialists
Vehicle or car trade insurance is designed specifically for businesses that work with vehicles they do not own. Whether you operate from a fixed premises, trade from home or work on a mobile basis, your insurance will need to account for vehicle movement, customer interaction and third-party exposure.
We can arrange car dealers’ insurance for both independent traders and larger operations, helping ensure cover remains appropriate as stock values, turnover and staffing levels change. Our role is to simplify the process, negotiate competitive terms, and explain how your policy works so you can focus on running your business with confidence.
Types of Motor Trade Insurance Policies
Cover for Dealers, Repairers & Vehicle Specialists
Road risk insurance is the minimum level of cover required for motor traders who drive vehicles on public roads in connection with their business. From an insurance perspective, it allows you to legally drive customer and trade vehicles and update the Motor Insurance Database (MID). Road risk-only policies are popular with traders who buy and sell vehicles from home or operate without premises. Cover can be arranged on a third-party only, third-party fire and theft, or comprehensive basis.
Combined Motor Trade Insurance
For motor trade businesses operating from premises, combined motor trade insurance offers a more comprehensive and joined-up solution. It can bring together essential covers such as road risks, premises insurance, public and employers’ liability, vehicle stock, tools and equipment, and business interruption within a single policy. This integrated approach provides broader protection, reduces gaps between covers, and is often more cost-effective for established motor trade operations with higher asset values and more complex day-to-day risks.
Structuring the Right Motor Trade Insurance Policy
Your motor trade insurance policy should reflect how your business operates in reality. Insurers assess factors such as driver age, driving history, vehicle types, premises security, turnover and stock values.
Any changes to your business, including new drivers, increased stock levels, additional premises or expanded services, should be reported to your broker immediately. Failing to do so could result in gaps in cover or reduced claims payments.
Motor trade businesses face ongoing scrutiny around health and safety (1), environmental responsibility and customer protection. Insurers increasingly assess risk management practices, including site security, fire prevention, driver controls and vehicle storage arrangements. Strong risk management can help reduce claims frequency and severity, it can also contribute to keeping premiums competitive and improving long-term insurability.
Experienced Motor Trade Insurance Brokers
With over 35 years’ experience, McClarrons provides specialist advice across the motor trade sector. As independent motor trade insurance brokers, we work with leading insurers who understand the risks faced by car dealers, garages and vehicle specialists.
We take the time to understand how your business really operates, explaining your motor trade insurance policy clearly and arranging cover that helps to support compliance, resilience and long-term growth. Our relationship doesn’t end at renewal; we provide ongoing advice as your business evolves.
Motor Trade Insurance Claims Support
When a claim arises, experienced support can make a significant difference. Our in-house Claims Team can manage your motor trade insurance claim from first notification through to settlement, dealing directly with insurers, loss adjusters and third parties on your behalf.
When you initially report a claim, you will be assigned a dedicated claims advisor who acts as your single point of contact, helping you to minimise disruption, protect cash flow and keep your motor trade business moving through the process.
What our clients say
Contact a Motor Trade Insurance Specialist
You can start your enquiry by filling in the contact form and one of our specialists will be in touch.
Alternatively, you can contact the team on 01653 602640.
Motor Trade Insurance FAQs
Can I drive any car with motor trade insurance?
This can be possible, depending on your policy. Your policy may include named drivers, employees and sometimes family members but restrictions often apply. These can include driver age limits, licence requirements and exclusions for certain vehicle types. It’s important to declare all drivers accurately at the outset to understand exactly who can drive what vehicle.
Do I need car trade insurance if I only sell a few vehicles?
Even if you sell vehicles on a small or part-time basis, you still need to consider appropriate car trade insurance. Any business activity involving buying, selling, driving or storing vehicles for profit requires suitable cover, regardless of volume or turnover.
Is employers’ liability insurance mandatory for motor traders?
Employers’ liability insurance is a legal requirement for any business that employs people, including apprentices, mechanics, valeters, or other staff. This applies regardless of business size and helps to protect against claims for injury or illness arising from employment; it should also be noted that this is necessary for volunteers, family members who carry out work for the business and casual workers.
What is road risk insurance?
Road risk insurance is the minimum level of cover required to legally drive vehicles in connection with motor trade activities. It can be arranged as third-party only, third-party fire and theft, or comprehensive cover. Road risk insurance also allows you to add and remove vehicles from the Motor Insurance Database (MID), ensuring legal compliance.
Do I need motor trade insurance if I run my business from home?
If you repair, sell or handle vehicles for profit, you at least need third-party motor trade insurance, even if you operate from home. Many home-based traders benefit from comprehensive or combined motor trade policies to cover liability, tools, stock and business interruption risks.
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