Motor Trade Insurance

Motor Trade Insurance is a crucial safeguard for individuals and businesses immersed in the dynamic motor trade industry. Whether you're involved in vehicle sales, repairs, or other related services, having the right motor trade insurance is essential. Discover the various forms of coverage that cater to the unique needs of motor traders and ensure comprehensive protection for your business and assets.

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What is Motor Trade Insurance and How Does it Work?

Motor trade insurance is a specialised type of cover designed specifically for businesses involved in the vehicle industry, such as car dealerships, repair shops and service stations, whether operating from a home or business premises.

It covers a range of risks including vehicle damage, theft and liability for customer vehicles under the business’s custody. Businesses can legally test, service and sell vehicles with motor trade insurance.

Importance of Motor Trade Insurance for Businesses

Purpose of Motor Trade Insurance:

  • Legal cover for driving and operating:
  • Company-owned vehicles.
  • Personal and customer vehicles.

Setting Up Insurance:

  • Getting a quote for motor trade insurance from the companies like Prime Cover.
  • The insurance policy is tailored to cover all potential risk factors.
  • Offers competitive monthly premiums.

Coverage Details:

  • Cash flow disruptions post-accident.
  • Accident assistance.
  • Damage to other property.

Motor Trade Insurance for Your Business

Any business that is involved in the motor trade will need some form of motor trade insurance as a legal requirement. Adding other policies to your unique cover will mean you can safeguard against any potential threat or risk. Prime Cover assures you we have insurance options to suit you. Explore our options below or get in touch to discuss your needs.

Motor Trade Road Risk Insurance

Anyone driving vehicles on the road for their business must have road risk insurance.

Motor Trade Combined Insurance

For road risk insurance combined with coverage for other risks on the same policy.

Recovery Truck Insurance

Operating in high-risk environments means getting your recovery truck insurance right is vital.

Vehicle Collection and Delivery

Collecting and delivering vehicles for a business needs specific insurance to keep you covered.

Trade Plate Insurance

Driving other people’s cars as part of your work means you need trade plate insurance.

Mechanic and Mobile Mechanic Insurance

When you repair vehicles you need insurance coverage for you and your customers.

Auto Electricians

getting the right auto electrician insurance is key to making sure that you are protected against any issues that could prove financially crippling without it.

Can’t Find What You’re Looking For?

Get in touch to see if we can help you.

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Motor Trade Policy Options – Road Risk Only or a Combined Policy

The two most commonly used policies are road risk only or a combined policy, although additional add-ons can be included to create the perfect insurance coverage for your unique business.

Road Risk Only

  • Third Party Only (TPO): Covers any liability, injury or damage to other people’s property or persons that result from an accident. This doesn’t cover your own vehicles or injuries.
  • Third Party, Fire and Theft (TPFT): This builds on the level of TPO cover and also covers fire and theft.
  • Comprehensive Cover: Includes all features of TPFT and also damage to your own vehicles.

Combined Motor Trade Insurance

  • Your business premises.
  • Liability cover to protect against third-party claims for injury or damage from customers.
  • Liability cover for employees and the general public.

Road Risk Only Vs. Combined Motor Trade Policies

Vehicles on the road Yes Yes
Public liability Add-on available Yes
Vehicle value Maximum usually £50,000 £Unlimited (on request)
Stock coverage Add-on available Yes
Building premises cover No Yes
Protects your business as a whole No Yes

Additional Coverage Options:

We offer a wide selection of add-ons to your basic road risk or combined insurance policy to cover all types of risks for your motor trade business, including:

What Level of Cover Do I Need?

All vehicles on the road legally have to have a level of insurance. In the same way that your Vauxhall, Tesla or other make of personal car has three levels of cover you can opt for, there are the same options for your motor trade vehicles.

  • Third Party Only (TPO)

    Third Party Only (TPO) is the most basic level of cover that any vehicle on the road can have to be legally compliant. It will cover any damage to other persons or their property, although it won’t cover any damage to the vehicle you’re driving or personal injury.

  • Third Party, Fire and Theft (TPFT)

    Third Party, Fire and Theft (TPFT) is the next level of cover that is available for motor trade insurance, and this offers the same coverage as TPO but will also provide protection against damage from fire or the loss of the vehicle being stolen.

  • Comprehensive

    Comprehensive is the highest level of coverage that motor trade insurance can offer for your business vehicles, and it offers all the same coverage as TPFT, but it extends protection to the vehicle you’re driving whether the accident was your fault or not. It also covers vehicles belonging to your customers as well.

The Benefits of Motor Trade Insurance

There are several advantages to motor trade insurance:

legal requirement

A motor trade insurance policy ensures your business is legally compliant, building you a credible reputation.


Insurance policies provide flexibility to your specific business’s needs and can be amended to your growing requirements.

Peace of mind

Accidents, theft and unexpected events can all be covered for ultimate peace of mind, removing your worries as a business owner.

Financial protection

Safeguard your business against financial losses that could be caused by accidents, theft, fire or other detrimental events, saving you thousands of pounds in the long run.

Our Application Process – Applying for Your Motor Trade Insurance

Getting your perfect motor trade insurance quote couldn’t be easier. Just follow our simple steps:

  • Contact Prime Cover:

Reach out to our expert team by filling out our online form for a quick quote or get in touch via email or phone.

  • Select Your Quote:

Review the quotes we obtain from our insurers. Choose the one that best fits your needs and budget.

  • Finalise Your Insurance:

Complete your payment, either in full or with a deposit to start your coverage. We set up direct debits and send the documents signature.

Claims Processing Timeframe

Our claims line is open 24/7, and our dedicated claims team will work to process your claim and award you any compensation as quickly as possible.

Personal Support And Guidance

We understand that making a claim can be a challenging process, especially if you’ve never had to do it before. Our friendly team is here to help and make the process as easy for you as possible.

Keeping You Informed

Prime Covers’ expert claims team is there to stand with you when you need us. We’ll walk you through the claims process and keep you updated as things progress.

Claims Resolution

Our team understands the importance of swift and fair claims resolution, and we’ll work flat out to ensure that you’re not unduly out of pocket should the worst happen.

Claims Support Team

With a dedicated 24/7 claims line, our claims support team is your friendly, knowledgeable point of contact in case you need them.


Motor trade insurance works similarly to standard vehicle insurance but is tailored for the motor trade industry. It covers businesses against potential claims that might arise from accidents, theft or damage to vehicles they own or handle.

Your motor trade insurance cost will depend on several factors, including the size and value of your business and the type of policy you wish to apply for. More comprehensive policies and larger businesses will be more expensive. Other considerations to make about the cost will be any policy add-ons you choose and whether you have any previous insurance claims. Prime Cover is more than able to assess your needs and break down the exact costs for your motor trade insurance coverage. Get in touch with us today and we can build you a free, no-obligation quote.

With Prime Cover, you can save on your premiums by ensuring that all drivers on the policy have a good driving history, increasing your voluntary excess and using your no-claims discounts. As we have an inside track to some of the best deals, you can be sure of the most competitive prices on the market

Yes, in the UK, if you're operating a business within the motor trade industry and are handling or driving vehicles on the road as a part of your business, you're legally required to have at least third-party only (TPO) insurance.

At Prime Cover, our motor trade policies typically cover the policyholder and any named drivers, like their spouse, or those who are employed within the business. This includes full-time and part-time staff who might need to drive a vehicle as part of their job. We can tailor policies to suit your needs if fewer or more people need to be covered.

For a policy with Prime Cover, we typically require confirmation of your driving licence including summary and proof of any no-claims bonus or claim-free driving you’ve advised of. Insurance companies reserve the right to ask for further supporting documentation, such as proof of home or trade address and proof of involvement within the trade amongst others. Most of the time, these aren’t required up-front, however, and insurers will give 2-4 weeks to supply this information from the time the policy goes live.  Details of the vehicles and drivers you wish to include in the policy will also be necessary. For more information about the documents you need to provide, get in touch with a member of our team for more information.

With our policies, you’re typically covered to drive most vehicles related to your business operations. However, some niche vehicle types, such as high-performance, high-value, modified, imported and vehicles over 3.5T GVW might require specific mentions or separate endorsements and every business has different and unique requirements. So, if you drive particular vehicle types such as those listed above, it’s always best to disclose that, discussing your needs with a member of our team.

This depends on your business operations. At Prime Cover, we offer advice to help you decide on the best level of coverage based on your specific needs. Get in touch with a member of our team for some bespoke advice and a quote for the cover that will meet your business’s needs.

Road risk covers vehicles, when they are on the road, from accident or injury to the driver, passengers and members of the public, depending on the level of coverage. Traders’ combined insurance provides a more comprehensive cover, including road risks plus other aspects such as tools, premises, equipment and liability coverages.

While most vehicles can be covered, there might be limitations or higher premiums for luxury, imported or high-performance cars. If you have questions about a specific vehicle, then get in touch with a member of our team to discuss whether you can get cover for it.

Yes, Prime Cover offers tailored policies for part-time traders ensuring you're covered without paying for more than you need. Call a member of our team to discuss your business’s requirements for part-time motor trade insurance.

To keep costs down:

  • Ensure all employees driving have a clean driving record.
  • Prioritise drivers with more experience.
  • Invest in security for your premises and vehicles.
  • Reduce the number of vehicles on the policy if possible.
  • Opt for a higher voluntary excess or limited coverage where appropriate.

Each case is reviewed individually. While convictions can raise premiums or affect eligibility, we will assess the relevance and severity of convictions for every case when deciding on coverage.

If you need to make a claim, contact our dedicated claims team immediately via our 24/7 claims line. They will guide you through the process, ensuring it's as smooth and efficient as possible.

Why Choose Prime Cover?

Uk's No.1 Motor Trade Insurance Provider

  • Expertise - With over forty years of experience in insurance amongst our senior leadership, you can rest assured that we have the expertise to look after all of our customers and their unique needs.
  • Specialists - We specialise in motor insurance, as 95% of what we do is in the motor trade insurance sector, meaning we have the most up-to-date knowledge of the industry.
  • Clear Communication - We understand the importance of clear and uncomplicated communication without jargon, and we believe that every customer deserves to be informed and educated about their options, so we ‘talk straight’.
  • Value - With our specialism in the industry, we can find the best value policies at the most competitive prices, so we can reflect that good value to you, our customer.

At Prime Cover, we specialise in insurance for the motor trade, and it makes up 95% of what we do. We understand the industry, the different specialities within it and their potential risk points.

We’re able to work with our customers to build bespoke insurance policies that suit their needs, and help them secure their most prized assets, without paying for extras they don’t need.

We pride ourselves on our expertise, clear communication and value. So, no matter your trade, get in touch today and secure your peace of mind.

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