Motor Trade Insurance FAQs

The motor trade industry is varied and wide-reaching. Every business within the industry is different, meaning that their insurance should be specific to the risks of their particular needs.

We know that finding the right motor trade insurance for your business can be challenging, so we’ve put together a list of our most frequently asked questions on the topic to help you find the answers you’re searching for.

What is motor trade insurance?

Motor trade insurance is a type of insurance policy designed for businesses that operate in the motor trade industry. These types of policies typically cover the premises, equipment, employers, and employees within a motor trade business. It also covers the vehicles involved, including cars, vans, and motorcycles.

How to get motor trade insurance?

The best way to cover yourself as a motor trade business is to discuss your requirements with a specialist motor trade insurance broker, like Higos. Our team will be able to keep in mind your unique needs as a business and find the cover that best fits your needs. At Higos, we don’t do ‘one-size-fits-all’ – all our cover is bespoke to the customer.

Want to know more? Why not get in touch with our expert team. We also have an in house underwriting team that can help reassure you, so you can get on with growing your business.

What does motor trade insurance cover?

Most motor trade insurance policies will cover basic commercial risks such as public and employer liability and buildings insurance – but will also feature cover specific to the risks of the motor trade industry. This includes things like business interruption insurance, road risks, trade car insurance, and more.

Find out more about our motor trade insurance policies.

What is road risk insurance?

Road risk insurance is a type of cover included on most trade car insurance policies that covers motor traders when driving cars they don’t specifically own. It covers you as a business in the event that a client’s car is stolen or damaged (whether by a road accident or another cause).

It is a legal requirement for motor traders in the UK to have road risk insurance. Make sure you’re always protected to the legal standard with Higos.

Do I need motor trade insurance?

Any business or individual that operates in the motor trade industry, such as mechanics, dealerships, valet services, and body shops, may need motor trade insurance. It is also suitable for those who buy, sell, or repair vehicles.

While road risk insurance is a legal requirement for anyone who works with or drives vehicles belonging to others in the UK, motor trade insurance is not strictly compulsory.

However, that is not to say that it isn’t an important aspect of running a motor trade business. The motor trade comes with specific risks that are not covered by usual commercial insurance policies. For this reason, it is highly recommended that anyone within the motor trade find bespoke motor trade insurance through an experienced broker or provider.

How does motor trade insurance work?

Your motor trade policy is different from the private car insurance you will have for your own vehicle. It includes many different types of cover specific to a motor trade business and the risks specific to you. It allows you cover on everything from your business premises and equipment to public and employer liability, and even cars belonging to your customers while they’re in your care.

Can I drive any car with motor trade insurance?

Provided it is included on your individual policy, you will be able to drive most kinds of vehicles (also provided you have a license for these types of vehicles) on your motor trade insurance policy but only if it is for business purposes.

If you are included as a named driver on the company’s trade car policy you should be able to drive customers’ cars that come through your business. Make sure to keep driving them for testing and the purpose of the business – you cannot drive them recreationally!

Do you need motor trade insurance to sell cars?

As stated above, a motor trade insurance policy is not a legal requirement for businesses in the motor trade. However, it is strongly recommended that you employ this kind of cover if you work at all with vehicles. This includes car salesman, garages, and dealerships. At Higos we understand that each business in the motor trade is different, feel free to give our expert team a call and they will be happy to help.

Who can get motor trade insurance?

Anyone working within the motor trade can apply for a motor trade policy. On top of this, policyholders usually need to be between the ages of 25 and 74 and also meet some other specific criteria. If you hire apprentices, you should get them covered in your motor trade policy. For motor trade insurance for under 25’s, get in touch with us today via phone or email for a quick answer.

Can you get motor trade insurance without premises?

If you run a motor trade business from your home, or without specific premises, you can still get covered with motor trade or trade car insurance.

Your insurance broker will likely amend your policy to not include aspects specific to premises, such as buildings insurance, and may include other types of cover to your policy so it fits you and your business.

Can you get motor trade insurance for young drivers?

Just as with personal car insurance, finding a motor trade policy for young people (usually 25 and younger) can be challenging and come with higher premiums.

Many standard policies will request that named drivers be 25 or over – however, although difficult, it is possible to have young drivers on your motor trade policy.

The best way to find out if this is possible for your business is to get in touch with a specialist insurance broker, like Higos. If you want to discuss your requirements and look for motor trade insurance for under 25s and for the rest of your team please contact your nearest Higos branch.

Can I drive a car with no tax on trade car insurance?

The answer to this is no – you cannot drive an untaxed vehicle just because you have motor trade insurance. To drive an untaxed vehicle you will also have to apply for trade plates once your policy is in place. These allow you to drive untaxed and uninsured vehicles for the purpose of your business (e.g. selling or fixing them).

Got more questions, or looking for a bespoke motor trade insurance policy to fully protect your business? Contact us today to get in touch with our expert team of commercial insurance brokers. We’ll keep in mind the unique parts of your business and find the right cover for you. Alternatively, you can request a call back.