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 insurance designed specifically for businesses that work with vehicles, which can include buying, selling, repairing, valeting or offering services that are related to vehicles. Any business or individual that works with vehicles on a professional basis will require some level of motor trade insurance and this can include car dealerships, mechanics and garages, breakdown service providers, car restorers and more.

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.

Who Needs Motor Trade Insurance?

Simply put, any business that is involved in the motor trade will need some form of insurance. Motor trade insurance at some level is a legal requirement, but adding other policies to your unique policy will mean you can cover any potential threat or risk, giving you total peace of mind to get on with what you do best, running your business and serving your customers. The most obvious types of businesses that will need motor trade insurance that spring to mind are:

  • Vehicle dealerships

    Dealerships who need to let potential buyers test drive vehicles, whether new, used or exported/imported vehicles.

    Vehicle dealerships will need insurance for multiple facets of their business. As a baseline, you’ll need road risk insurance, but you’ll also likely need trade plate insurance, employer’s liability insurance, as well as other forms of insurance to cover stock and possibly garage insurance if you also offer servicing and repairs. 

  • Mechanics and garages

    Mechanics and garages who provide mechanical repairs, conduct MOTs and specialise in bodywork repairs and who need to drive customers’ vehicles for diagnostic or testing reasons.

    Mechanics and garages will often require employer’s liability insurance, as well as cover in case of mishaps with customers’ cars. You’ll also require special insurance to cover you while driving customers’ cars on the road, as well as protection in case you should lose your MOT licence. 

  • Vehicle transporters

    Vehicle transporters who move cars from one location to another.

    Any business that revolves around moving other people’s cars from location to location could fall into hot water should those vehicles be damaged, so insurance to protect you and your clients is crucial. 

  • Breakdown and recovery services

    Breakdown and recovery services who tow or repair vehicles on site.

    Breakdown and recovery service providers and operators will need motor trade insurance to drive their vehicles on the road, as well as insurance to cover any repairs done to customers' cars or if they sustain damage while being moved. 

However, many more types of businesses will need motor trade insurance to operate in more specialised and niche markets such as

  • tyre fitters,
  • valeters,
  • vehicle tuners,
  • scrap yards or breakers,
  • vehicle accessory shops,
  • auction houses,
  • auto locksmiths,
  • vehicle restorers

and those involved in repossessing vehicles, as well as those involved in renting or leasing vehicles for short- or long-term periods.

Whatever your area of expertise within the motor trade, you’ll require some level of insurance cover. By working with a specialist motor trade insurance provider like Prime Cover, you can find the exact coverage that’s right for your business. We’ll work with you to assess the potential risks and build a unique policy around you, so you can rest easy.

Policy Options – Road Risk Only or a Combined Policy

Motor trade insurance has various policy types, and, depending on your business size and scope, it may be that one or other is more appropriate for your requirements. The two most commonly used are road risk only and a combined policy, although additional add-ons can be included to create the perfect insurance coverage for your unique business.

Road Risk Only

Road risk only insurance is the most basic cover that your motor trade business can have to operate and ensure that you can drive vehicles to carry out your day-to-day operations. The minimum road risk coverage, and legal requirement, is Third Party Only (TPO) which covers any liability, injury or damage to other people’s property or persons, including passengers, that result from an accident, but it doesn’t cover your own vehicle or injuries.

Third Party, Fire and Theft (TPFT) builds on the level of TPO cover but also covers fire and theft, whereas Comprehensive cover will cover all features of the other policies but also damage to your vehicle.

Combined Motor Trade Insurance

A combined motor trade insurance is a more comprehensive form of insurance which is designed to combine a range of coverage types, creating a much more comprehensive cover for not just driving customers’ or stock vehicles, but also covering premises and providing liability cover to protect against third-party claims for injury or damage from customers, employees and the general public, that may be caused by your business.

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:

At Prime Cover, we are aware that no two businesses are the same and that no two policies will be exactly alike either. This is why we offer a wide selection of add-ons to your basic road risk or combined insurance policy to cover just about anything you consider to be a risk for your business. Whether you have expensive tools, equipment and stock or need to cover interruption to business and financial loss as a result, specialised add-ons can include:

  • Loss of your MOT licence
  • Sales and service indemnity
  • Cover for engineering inspection
  • Directors’ and officers’ insurance (for claims made against you specifically)
  • Tool cover and equipment cover
  • Cover for stock vehicles at premises
  • Employer’s liability insurance
  • Garage insurance
  • Trade plate cover

Motor Trade Insurance for Your Business

Whatever your motor trade specialisation, we have insurance options to suit you. Select your trade from the options below to learn more, or if you can’t find what you’re looking for, 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 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.

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.

Our Application Process – Applying for Your Motor Trade Insurance

Getting your perfect motor trade insurance quote couldn’t be easier, you merely have to follow several simple steps:

  • Get in touch with our expert and experienced team which you can do in a few ways. Either fill out our form for a quick quote or contact us via, email or telephone number.
  • We obtain quotes from our insurers.
  • You are offered these quotes and you choose the one that suits your needs and budget.
  • Make a deposit payment or payment in full.
  • Your insurance is sorted, and cover begins from the time and date you require it, meaning you can get on with your business’s operations.
  • We then set up your direct debits, if applicable, and all you need to do is check the documentation that we send you shortly afterwards, signing where requested.

Why Choose Prime Cover?

Uk's No.1 Car Insurance Traders

  • 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.

We provide insurance for:

The Benefits of Motor Trade Insurance

There are several advantages to motor trade insurance:

legal requirement

Firstly, it is a legal requirement to have the minimum Third Party Only insurance for any vehicle that is driven on the roads. If your company employs other people, then legally you are also required to have employers’ liability insurance, so motor trade insurance can ensure your business is compliant, which builds into the good reputation of responsibility for your company.


Motor trade insurance provides flexibility to be adapted to your specific business’s needs and size and it can be amended according to your company's growing requirements.

Peace of mind

Peace of mind is a not-to-be-underestimated benefit of motor trade insurance. Knowing that accidents, theft and unexpected events can all be taken care of will remove many of your worries as a business owner.

Financial protection

Financial protection is another huge benefit of having a good motor trade insurance policy as your policy will safeguard against financial losses that could be caused by accidents, theft, fire or other natural disasters, or if a customer, employee or member of the public chooses to bring legal action against your business. A small monthly premium can save you thousands of pounds of crippling payments to keep your business running.

Our Customers Trust us!

How Much Does Motor Trade Insurance Cost?

The honest answer is, ‘it depends’. Primary among these are the size and value of your business and how much of it you choose to insure. More comprehensive policies and larger businesses will be more expensive, and smaller businesses and lower levels of coverage will be cheaper

The cost of motor trade insurance will depend on a large number of factors. The size and scope of your business, the value of your vehicles, equipment, tools, stock and premises, as well as the number of employees you have, where the business is located, the rebuild cost of your premises and which insurance products you require to ensure that your business is protected.

Each business is unique and, therefore, your quote will be unique to cover those different aspects. To find out more, get in touch with a friendly member of our expert team to get a free, no-obligation trade insurance quote today, or fill out our online form.

In short, Some key factors that can affect the cost of your insurance are:

  • The size of your business
  • The level of coverage you opt for (e.g. road risk only or combined)
  • Where your business is located
  • What policy add-ons you choose
  • Whether you have any previous insurance claims

If you’d like to get a clearer picture of how much your motor trade insurance might cost, get in touch with us today and we can build you a free, no-obligation quote.

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 & 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.

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.