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Motor trade insurance is typically designed to insure a wide range of industry businesses whether you’re a second-hand car salesman, a mechanic or manager of a valeting service.

Finding the right motor trade insurance or traders insurance can be a complicated and time-consuming process. At Staveley Head, we understand that, so we make things simple for you. We take the time to understand your business ensuring you get the cover you need – fast.

  • Cover for individuals, sole traders, partnerships or limited companies
  • Policies available for traders with premises or working from home
  • Cover for vehicles up to 7.5 tonnes
  • Easy Motor Insurance Database (MID) access with no charge to add/remove vehicles
  • Innovative smartphone app for handling MID updates on the go

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


Third party only: This basic level of insurance offers up to £5m cover for your liability to others, including damage to their property. There is unlimited liability for death. Damage to your own vehicles is not covered.

Third party, fire and theft: In addition to third party only, cover is provided for loss or damage to your vehicles by fire, theft or attempted theft. The maximum indemnity limit available is £15,000. Accidental damage to your own vehicles is not covered.

Comprehensive: Our comprehensive policy provides your motor trade business with the highest level of road risks cover. In addition to third party, fire and theft, cover is provided for accidental damage to your own vehicles. The maximum indemnity limit available is £30,000.


We understand that all businesses are different, that’s why we offer a number of optional extras specifically tailored to the motor trade. So, if you need cover for customer demonstrations or simply want to add breakdown insurance so all your cover is in one place, we can help.

Our range of optional extras include:

  • Liability insurance: Every motor trade business, even if home-based, can get liability insurance. It provides both defence and damages if you, your employees or your products or services cause or are alleged to have caused injury or property damage to a third party. Our cover includes public, product and employer’s liability, ensuring your business is protected in the event of a claim.
  • Breakdown insurance: Get national coverage 24/7 and the choice of a range of cover options to suit your needs including roadside assistance, recovery and EU cover, so if the unfortunate happens we’ll get you back on the road fast.
  • Excess protection insurance: Cover the cost of your excess in the event of a fault or 50/50 claim, our policy will protect you against the cost of your insurance excess.
  • Motor legal insurance: In the event of a non-fault accident, our legal insurance will cover you for up to £100,000 in legal fees.
  • Accompanied demonstration cover: A great addition to your policy if you’re in the car sales business, this keeps you covered if you let prospective customers test drive vehicles you have in stock before they buy them.


We’ve answered your popular questions about our cover, but feel free to contact us for more information.

Do I need motor trade insurance?
The law says that you do. You’ll need a motor trade road risks policy if you have customer’s vehicles in your care, control or custody for the purpose of your business. For those involved in vehicle sales, the cover is required for collecting, delivering and demonstrating vehicles.

Do I qualify for a motor trade insurance policy?
Generally, this can vary depending on the insurer. If you can prove that you’re operating a genuine, income-generating business you may qualify for our motor trade insurance. Some restrictions to this are outlined below:

  • The business must reside and trade only in the UK.
  • The business must generate at least 10% of your annual income with a minimum of 6 sales/contracts per year.
  • Vehicles are limited to private cars and commercial vehicles that can be driven with a standard driving licence only.
  • Drivers must be aged between 25 and 69.
  • All drivers must have been permanently resident in the UK for 3 consecutive years immediately prior to inception.
  • All drivers must have held a full UK driving licence, applicable to the vehicle being driven at any given time, for at least 2 consecutive years immediately prior to inception.
  • A maximum of 4 named drivers, including the policyholder, is allowed.

I need to drive several vehicles – is a motor trade policy what I need?
Motor trade insurance is not a means to get cover on multiple vehicles. To qualify for a motor trade policy, you must be able to prove that you’re operating a genuine, income-generating business, whether that’s buying and selling used cars or performing a mobile repair service, for example. 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 in the form of audited accounts and receipts.

Do I need to tell you each time I acquire a vehicle?
Current legislation means that you need to keep the MID up to date with regard to vehicles you own or are likely to be in your custody for a certain length of time. You also need to remove vehicles from the MID as soon as you’re no longer in possession of them. Our traders’ insurance team will be able to help you regarding the MID and your responsibilities.

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 or face fines of up to £5,000.

Can I add vehicles to the MID by text message (SMS)?
Generally, this cannot be done across the industry. However, you can make MID changes using our smartphone app or through our online MID update portal easymid.co.uk.

I’m a part-time trader; can I still get traders’ insurance?
Typically, you can get this with most insurers. We provide cover for both full-time and part-time motor traders.

Will I be covered to drive any vehicle?
Generally, taking out a traders’ insurance policy doesn’t necessarily mean that you’ll be covered for this. Under our policy, you’re covered to drive any vehicle either owned by you or any vehicle that is in your custody or control in connection with your motor trade business.

Can I cover motorcycles under a motor trade policy?
Some motor trade insurers may offer additional cover levels for motorcycles. We provide third party only cover for motorcycles under our motor trade policies. To arrange this please call us on 0800 0815 029.

Does my motor trade policy come with public liability insurance?
This typically wouldn’t be included in a standard traders’ insurance cover. But this can be purchased as an optional extra. Take a look at our public liability insurance.

Do you provide cover for younger drivers?
The majority of insurers won’t provide cover for young drivers on trader’s insurance policy. We offer a range of motor trade insurance solutions, but we don’t provide cover for drivers under 25.

Want an even easier MID update tool?
Now you can add and remove vehicles from the MID with the UK’s first fully functional app, available for both iPhone and Android.


Car insurance: We can give you a car insurance comparison quote. There’s also optional No Claims Discount (NCD) protection available and a multi-car discount for insuring 3 or more vehicles.

Classic car insurance: Getting a classic car insurance quote is quick and simple. We offer discounts for limited annual mileage and there’s optional NCD protection.


Complete a motor trade quote request and one of our skilled insurance advisors will contact you as soon as possible.

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If you’re interested in taking out insurance with us.

0800 0815 029 Mon - Fri 9am - 5.30pm


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