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Motor Trade Insurance

Insurance can seem like a minefield when working in the motor trade industry. However, it doesn’t have to be. 

We take the time to understand your business, ensuring you get the cover you need. Our experts have decades of experience in the industry, and we use our expertise to find you the correct cover and the most competitive motor trade insurance quotes on the market.  


  • We offer cover for individuals, sole traders, partnerships or limited companies. 
  • Policies are available for traders with premises or working from home. 
  • Cover for full-time and part-time traders available. 
  • Accessible Motor Insurance Database (MID) access with no charge to add/remove vehicles. 
  • Our dedicated team of insurance experts are only a call away at 0800 0815 024. 

How to make a claim on your Motor Trade insurance

When an incident or accident occurs out of the blue, this can lead to you potentially needing to make a claim on your motor trade insurance. To help make this process as simple as possible we’ve put together this short guide.

A Beginner’s Guide to Car Auctions
Car auctions play an important role in the motor trade industry – they are a popular place for traders to buy and sell used cars. If you’ve never been to a car auction before then be ready for a memorable experience. Read more

What you need to know about becoming a Motor Trader
Ever dreamt of being your own boss and running a successful business? Becoming a motor trader could be the answer. If you’re thinking of entering the exciting world of motor trade there are plenty of positives. Read more

How to read your Motor Trade insurance policy
Reading through your motor trade insurance policy wording might not be at the top of your bucket list, at times it can be confusing and frustrating – but it’s important that you do. Read more

How to check if a vehicle is registered on the Motor Insurance Database (MID)
The information you provide that relates to your motor trade insurance policy will automatically be added to the Motor Insurance Database (“MID”) managed by the Motor Insurers’ Bureau (“MIB”). Read more

Understanding No Claims Bonuses
We all like to save money and when it comes to insurance having no claims is a good way to reduce your premium. Staveley Head motor trade can offer discounts for those with no claims of 1-5 years. Here is where you’ll find basic information about No Claims Bonus (NCB) or No Claims Discount (NCD) and how it works. Read more

Motor Trade Road Risks
We cover the ‘road risk’ if you have customer’s vehicles in your care, control or custody for the purpose of your business. Examples of those who need a motor trade road risks policy are full or part-time traders, vehicle salesmen, auto repair or car valeting service plus more. Read more

How technology is changing the face of the Motor Trade
Technology is always changing the way we interact with each other and the world around us – including the way we buy cars! This can prove tricky for motor traders trying to keep that competitive edge. As providers of motor trade insurance, it’s important that we understand how technology is changing the motor trade. Read more

Everything you need to know about rising motor trade insurance premiums and fraud
Rising insurance premiums can be an issue for many, and in this guide, we offer useful information looking at why motor trade insurance premiums rise. Read more

Petrol, diesel, hybrid or electric?
For years there has been a battle at the pumps between petrol and diesel. Which is more economical? Which offers the best performance? Is diesel a more comfortable ride than petrol or vice-versa? Read more

Motor Trade Business regulations
If you’re thinking of becoming a car or motor trader here are some of the rules and regulations you might need to consider. Read more

Your motor trader insurance FAQs 

At Staveley Head, we understand how difficult it can be to navigate motor trade insurance, so we make things simple for you. We’ve answered your popular questions about our cover, but feel free to contact us for more information. 

What is motor trade insurance? 

When a vehicle is in the custody of your business, the owner’s insurance policy will no longer cover it. Motor trade insurance is a policy designed to insure a wide range of industry businesses that fix, drive, and maintain other people’s cars.  

This type of insurance differs from the average private car insurance as there is a higher risk factor when working in the motor trade industry. Whichever part of the motor trade industry you operate within, your business will need the correct cover in the event of issues such as damage during a repair or service, and if a customer wants to test drive a vehicle before buying.   

Motor trade insurance is a legal requirement, along with road risk insurance, even for self-employed or part-time traders.  

The most common businesses that require motor trade insurance include: 

  • Motor traders and car sellers 
  • Mechanics, auto shops, tyre fitters, and body repairs 
  • MOT garages 
  • Vehicle collection and repossession 
  • Breakdown recovery services 
  • Scrap yards 
  • Vehicle collectors 
  • Car valets 

Do I qualify for a motor trade insurance policy? 

Whether you qualify for motor trade insurance will depend on the insurer and your business. Motor trade insurance does not cover multiple vehicles in the same way as a fleet insurance policy or personal multi-car insurance.  

To qualify for a motor trade policy, you must prove you’re operating a genuine, income-generating business. These businesses can be buying and selling used cars or performing a mobile repair service, for example.  

Some restrictions can prevent you from obtaining motor trader insurance. Before applying, please keep in mind the following conditions: 

  • The business must reside and trade only in the UK. 
  • Vehicles are limited to private and commercial vehicles that can be driven with a standard driving licence. 
  • Drivers must be aged between 25 and 69. 
  • Drivers under 25 cannot qualify.  
  • All drivers must have been UK residents for three consecutive years immediately before inception. 
  • Drivers must hold a full UK driving licence for at least two consecutive years immediately prior to inception. 

To discuss further, please call our office on 0800 0815 024. If you need to claim under your policy, you’ll be expected to provide proof of trade through audited accounts and receipts. 

What does motor trade insurance cover? 

Cover can vary depending on the insurer, but there are three common levels of cover for motor trade road risk insurance, which are: 

Third-party only: This basic level of insurance covers your liability to others in the event of property damage or death. Damage to your own vehicles is not covered. 

Third-party, fire and theft: In addition to third-party only, this covers loss or damage to your vehicles in the event of a fire, lightning, explosion, theft or attempted theft. 

Comprehensive: Our comprehensive policy provides your motor trade business with the highest level of road risk cover, including third-party, fire and theft, and in some cases, accidental damage. Terms & Conditions apply. 

Will I be covered to drive any vehicle? 

You will be covered to drive any vehicle you own or any vehicle in your custody or control in connection with your motor trade business that is acceptable under your chosen policy. What is considered an acceptable vehicle under a policy will differ depending on your insurer, as well as the value and type of vehicle. 

We always recommend double-checking your policy wording if you’re unsure of whether your vehicle qualifies. Alternatively, you can always give us a call on 0800 0815 024 and receive advice tailored to what cover your vehicle needs. Overall, you will not be covered to operate any vehicle with motor trade insurance. 

Should I consider extras with my motor trade insurance? 

Every business is different and has various requirements. While the vehicle is in your care, it is the responsibility of your business to have the correct additional extras alongside your motor trade insurance. We offer several optional extras tailored explicitly to the motor trade. If you need extra cover in addition to your policy, we can help. 

Our range of extras includes: 

Stock of vehicles insurance: Stock of vehicles insurance covers a business’s inventory of vehicles, which can be owned and operated as part of the business or sold and up for lease. It can help protect against financial losses resulting from damage or loss of the vehicles in their inventory, as well as protection in case of risks such as theft, fire, flood, and accidental damage. 

Liability insurance: Every motor trade business, even if home-based, should get liability insurance. It provides cover if you, your employees or your products or services in the event of injury or property damage to a third party. 

Public liability: Similar to liability, this policy offers cover for the public in the event of injury or property damage. 

Breakdown insurance: In the event of an accident, we will get you back on the road with breakdown insurance cover. There are numerous cover options to suit your needs, including roadside assistance, recovery and EU cover. 

Excess protection insurance: Cover the cost of your excess in case of a fault claim. 

Motor legal insurance: In the event of a non-fault accident, our legal insurance will cover legal fees, subject to terms and conditions.  

Accompanied demonstration cover: This cover is essential for a car sales business as it keeps you covered when prospective customers test-drive vehicles before they buy. 

What is the motor insurers’ database (MID)? 

The Motor Insurance Database (MID) is a register of all vehicles insured and shows the identity of the relevant insurer. 

It is a legal requirement for motor trade policyholders to supply accurate and timely updates to the MID. Failure to provide accurate updates will result in costly fines. 

Do I need to update the MID each time I acquire a vehicle? 

You must keep the MID up to date concerning vehicles you own or are likely to be in your custody for a certain length of time. Additionally, the MID must also be updated when you no longer possess these vehicles. 

MID updates can be made completely online and the way to add your update may vary depending on your policy provider. If you need any help regarding your responsibilities and the MID, our team can help over the phone at 0800 0815 024. 

How to get a motor trade insurance quote. 

Get your motor trade insurance quote today by calling 0800 0815 024 and chatting with our team. Don’t have time to chat but want a call? Request a callback, and one of our experts will give you a ring as soon as possible.  

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