Types of Motor Trade Insurance

Motor trade insurance policies are needed by a range of businesses. Any firm that takes care of, repairs or sells cars is likely to need this type of insurance. This includes mechanics and valets as well as car dealers. The fact that different kinds of businesses need this type of insurance, means that the insurance industry offers several different kinds of car trade insurance.

The Main Type of Motor Trade Insurance

For mechanics and valets, their motor trade insurance simply needs to cover them for driving other people’s vehicles. When repairing or cleaning cars, valets and mechanics usually have to move cars around their premises, so need insurance for this. In addition, they may need a policy that enables them to drive their customer’s vehicles on the road. Assuming that they are covered by their customer’s own insurance policy is not wise. In many cases, this will not actually be the case. It is also wise to consider a car trade insurance policy that covers customer’s vehicle for things like fire damage whilst being held in the garage or on the forecourt.

It is important for garages and valets to have separate insurance for their own business vehicles under separate insurance policies. Their motor trade insurance policy will not cover them to use work vehicles such as breakdown trucks or vans on the road.

Motor Trade Insurance for Car Dealers

Car dealers who are selling cars also need this type of insurance. They will be picking up and delivering cars and may be involved in servicing or sorting out small problems buyers find with their vehicles. In addition, vehicles will need to be covered whilst in the garage or on the forecourt.

However, most dealers need other insurance policies in addition to motor trade insurance. The vehicle itself needs to be covered in some way when people test-drive the vehicles. Exactly how this is done depends on the kind of insurance a current driver has, their age and several other factors. If you are going to deal in cars, you need to find out from your broker or insurance provider what is the best option for your particular car dealership.


Lion Heart Insurance are motor trade insurance specialists. They sell an array of insurance products designed specifically for firms who work in the car industry.