Question 1

What is motor trade insurance?

Accepted Answer

Motor trade insurance is a commercial policy for businesses that handle vehicles belonging to other people, or that hold vehicles as stock. It combines road risk cover — which allows you and your staff to drive those vehicles on the public road — with optional premises, stock, tools, and liability sections. It is arranged either as a motor trade combined policy or, for traders without premises, as road risk cover on its own.

Question 2

What's the difference between road risk and motor trade combined insurance?

Accepted Answer

Road risk covers the driving only, which typically suits mobile mechanics, part-time traders, and anyone buying and selling without a workshop or forecourt. Motor trade combined adds premises, stock, tools, employers' liability, and public liability to the same policy, which is usually the route for garages, MOT stations, body shops, and dealerships.

Question 3

Is motor trade car insurance the same as road risk cover?

Accepted Answer

In practice, yes. 'Motor trade car insurance' is the term traders commonly use for the road risk section that allows them to drive cars they do not own — customers' vehicles, stock, and vehicles being collected or delivered. It is written at third party only, third party fire and theft, or comprehensive level.

Question 4

Can I drive customers' vehicles on a motor traders insurance policy?

Accepted Answer

That is what road risk is for, provided the driver is covered under the policy and the vehicle is in your possession for a genuine trade purpose such as repair, MOT, valeting, collection, or sale. Damage to the vehicle itself while it sits in your workshop is dealt with by the custody and control section rather than by road risk.

Question 5

Can I drive any car with motor trade insurance?

Accepted Answer

Not usually. Most policies cover vehicles connected with your trade, such as cars you are repairing, servicing, testing, selling or delivering, and exclude social or personal use of those vehicles. Some insurers also limit cover by vehicle value, age or type, so check the policy wording before driving a vehicle that falls outside your normal trade.

Question 6

Is motor trade insurance worth it?

Accepted Answer

If you drive, store or work on vehicles you do not own, a standard car or business policy will not normally cover that work, so the question is usually which motor trade cover you need rather than whether you need one. Whether road risk alone or a combined policy suits you depends on your activities, premises and stock, and we can talk that through on a call-back.

Question 7

Do I need motor trade insurance to use trade plates?

Accepted Answer

Yes. DVLA trade licence plates must be used alongside a motor trade policy that includes road risk, held in the name of the business or individual the plates are issued to. Insurers will ask for your trade plate details when quoting.

Question 8

Can part-time and home-based traders get motor trade insurance?

Accepted Answer

Yes. Policies are available for part-time and home-based traders, though insurers will want evidence of genuine trade activity — typically the number of vehicles bought and sold in a year, and how the trading is recorded for tax. Some insurers set a minimum level of activity before they will offer trade rates, so it helps to have those figures ready before you speak to us.

Question 9

Do I need employers' liability insurance for my garage?

Accepted Answer

Most UK employers must hold employers' liability insurance of at least £5 million under the Employers' Liability (Compulsory Insurance) Act 1969, and that typically includes mechanics, apprentices, valeters, and casual weekend help. Narrow exemptions exist — for example certain family-only businesses, and some limited companies whose sole employee owns 50% or more of the shares — so it is worth checking your position rather than assuming.

Question 10

What security do motor trade insurers ask for?

Accepted Answer

Requirements vary by insurer and by the value of stock held. Typical expectations include a secure perimeter with gates or barriers, monitored CCTV, an intruder alarm, and key storage held away from the vehicles. Higher stock values may bring further conditions such as trackers or immobilised overnight parking. Any condition attached to your policy has to be met for cover to respond.

Question 11

Can I add vehicles to a motor trade policy mid-term?

Accepted Answer

Most combined policies cover stock automatically up to an agreed maximum value, so day-to-day changes in the vehicles you hold do not need to be declared one by one. You should tell us if the value of stock on site rises above the sum insured, if you take on new premises, or if your trade activities change.

Question 12

How do I arrange motor trade insurance with Focus Insurance?

Accepted Answer

Call 01733 263311 or request a call-back. We will go through your activities, premises, stock values, and drivers, then approach insurers with motor trade appetite on your behalf. Cover is subject to insurer acceptance, underwriting, terms, conditions, limits, and exclusions.

Motor Trade Insurance