Motor Trade Insurance Comparison | UK Traders Cover

Motor Traders Insurance Comparison

All occupations from car trader to Valter, Combined insurance policies available, One easy form for multiple quotes today

What is Motor Traders Insurance ?

Many types of trades exist, typical examples include motor trader, van trader and bike trader. Whichever trade you are in, comparing multiple trader insurance options is one step in finding a suitable policy. MultiQuoteTime works in partnership with QuoteSearcher who can help you by providing multiple car trader insurance quotes from a panel of select UK brokers. Get started by selecting the Get A Quote option above and complete one simple online form. Once submitted, you will be contacted via telephone by specialist motor trade insurance brokers, providing you with a quote that is specific to your motor trade business.

If you are a car enthusiast and work on cars part-time or even as a hobby, you should consider part-time motor trade cover. Even as a hobbyist, you will have collected expensive equipment and may have a few classic cars in your garage. These can be protected from financial loss by have the correct cover in place.

What is car dealer Insurance?

Car trader insurance also referred to as road risk Insurance is a cover specific to a business that deals with motor vehicles. These can be any type of motor vehicle, including vans, cars, motorbikes, electric vehicles and minibuses. Examples include dealers who buy and sell cars, mechanics that offer a repairing and servicing service, a garage or MOT centre. Car traders can be either full or part-time, and policies are available to all trader categories.

What levels of motor trade Insurance are available?

  • Road Risk Cover - This is financial protection for anyone who operates vehicles on UK roads and is required by UK law. There are three levels of cover in this area. 
  • Third Party -  The basic option is third party cover. This gives you the necessary cover to legally run your business. In essence, it covers the cost of any damage to a third party only. In plain English it does not provide any cover for your possible indemnities such as damage to your vehicle's, legal costs or damage to your place of work.
  • Third Party with fire and theft - One step up from third party this adds extra cover for damage to your vehicle by fire and theft.
  • Comprehensive -  This covers all above plus any damage to your own business. To repeat, you will get all the benefits of the above two options plus protection for your own vehicles, even if you or one of your employees is responsible for causing the damage.
  • Combined Cover - This is financial protection for the vehicles under your control along with the buildings and equipment you own related to the business. You need to decide what level of road risk cover you need and the level of cover required for buildings, tools and equipment.

Who is required to take out a motor trade policy?

Anyone who deals with a third party vehicle, road risk or motor trade insurance is required by UK law. This includes auto trades who buy and sell vehicles, mechanics and valets. If you have to operate a third party vehicle or a vehicle you will only own temporarily, you need motor trade insurance. 

Who is covered under a motor trade Insurance policy?

Any owner of the business or employee will be covered if and only if they are named in the motor trade policy. Some policies are written so that any employee of a motor trade business will be automatically included as a named driver, but there are higher premiums associated with that type of cover.

Are you eligible to apply for trade Insurance?

Many underwriters will require solid proof that you qualify for motor trade insurance. This boils down to being able to provide proof that you work in the motor trade. Examples of this type of trade work include the buying or selling of motors, the repair or valeting of vehicles, or the transportation of vehicles. This is not a question of being a full time or a part-time trader, but that you actively operate within the motor trade industry and that you can provide proof of this. In summary, who will need to meet the following requirements. If you provide a vehicle recovery service you will need recovery ruck insurance

Both part and full time operators in the motor trade business can take out a car trader insurance policy. Most insurance firms only issue this type of policy to people from 25 to 74 years of age and who can prove they are in the motor trade business. 

  • Proof that you do work within the motor trade industry. For example, if you are a motor trader, buying and selling vehicles, the receipts will act as proof. 
  • You will need a full UK driving licence and be over the age of 25

How to reduce your trader insurance premium

  • Consult with your broker to ensure that you are only paying for cover that you may not need, but be careful not to under insure.
  • Brokers will charge a higher premium if you are dealing with high performance, classic or HGV vehicles. If you do not deal with these categories, make your broker aware.
  • If possible, reduce the number of vehicles that you have registered with the MID at any point in time. This can be an effective way to make a substantial reduction to your quoted premium.
  • Make sure all vehicles are stored in a secure location or garage. Improving security should lower your risk and result in a better quote. 
  • If possible, only employ drivers over 25 with a clean driving record.
  • Increase the excess, the amount that you are responsible for in the event of a claim.

Find out more about motor trade insurance

If you are considering starting a motor trade business, you will most likely carry out online research to find answers to your specific questions. We have compiled some start up guides, some of which may have answers to your trade start up questions. We have also an FAQ section, which we regularly update with common and sometimes unusual questions that we get asked. Before taking out a motor trade policy, know what should be covered and at what level. Then shop for the best quote that provides what you need.

Compare a range of quotes from a panel of exclusive brokers

QuoteSearcher works with a wide range of insurance brokers that offer policies that can be tailored to your exact business requirements. This means that the cover provided is not in excess of your actual requirements. This means that you only pay for the cover that you need.

Scroll to Top