Motor Trader Insurance and What it Can Cover

Motor Trader Insurance and What it Can Cover, car interior

As a motor trader, you will want to cover road risks concerning the vehicles that your business owns and those of the customers that you are working on and transporting from A to B. You can not only have that but also have cover for premises too with a combined policy. This article will consider just what companies such as one sure insurance are offering motor traders in terms of insurance cover.

Motor Trader Insurance and What it Can Cover: Road Risks

Road risks will cover motor traders that are driving the vehicles of their customers. This is whether they are a mechanic, mobile or otherwise, repairing or servicing vehicles, offering a breakdown service, a car salesman with a dealership, or have a business car valeting.

Comprehensive insurance will provide the full cover and even cover vehicles that are at a home as well as work premises. On top of accidental damage cover, there will, of course, be the cover for fire, theft, or any form of vandalism. 

Your Premises

When there are business premises involved and someone is not just working from home, a motor trader policy can cover these too. This can be a garage forecourt or sales area or an area for repairing, providing an MOT, or servicing vehicles.

Work premises are a separate entity to a home working situation and will need to be covered as well. It is the motor trader policy that can take care of it all on one policy. This is convenient, not needing more than one renewal date to have to think of in respect of this aspect of cover. A direct debit payment arrangement can then spread the payments to help a business with cash flow.

Motor Trader Insurance and What it Can Cover: Who is Covered?

A motor trader policy will cover the owner of the business and employees involved in this aspect of the business. Also, it can extend to adding a spouse and other family members. You will need to provide details of every driver you wish to add. Young drivers will put the cost up, as will those with any motoring convictions and previous claims history. These must be declared.

We might not choose our employees based on their motor insurance history, but it will impact how much we pay in premium for our motor trader policy. It is like a car insurance policy; those same questions will be asked about drivers to determine their risk in terms of a potential claim. The location of the premises will also matter in terms of the risk of fire, theft, or vandalism.

Other Considerations

Always declare material facts to an insurer. In other words, those things that impact insurance risk. Answering all the questions honestly and fully on an insurance quotation should ensure this. If there is anything that you are not sure about, always check this with an insurer.

You should note that motor trader policies will be geared to covering you for your primary business and they may not extend to commuting to another occupation as well.

Many policies will provide unlimited vehicle cover, but you should check that this is the case. Also, some policies will have a limit on values. If luxury or high-end cars are your business, then check that the individual values of vehicles do not exceed policy limits.

Separate garage insurance cover will be needed to cover liability to the general public and employees.

It is good to know what motor trader insurance can cover and just what kinds of businesses can benefit from this kind of protection. In exchange for a premium, a business can have peace of mind that their vehicles and those of their customer are protected by insurance. Customers will want to know that their vehicles are protected too when they trust a garage to take care of them whilst they are repairing or cleaning them.

A salesperson selling new vehicles will want to know that should one end up getting damaged the cost can be covered. It is not that they will take less care of the vehicles but more about them finding it easier to sleep at night. Everyone needs that reassurance, and insurance in all situations provides this. That is apart from the legal aspects of insurance.


In all aspects of business, it makes sense to have the proper financial safeguards, insurances and checks in place.

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