Who can get motor traders insurance?

15 Oct, 2020

Motor trade insurance is designed specifically for people working in the motor trade, i.e. buying and selling, repairing or valeting cars – almost anything to do with selling or working on vehicles. 

As with any kind of insurance, insurers have certain criteria you’d need to meet in order to qualify for motor trade insurance. If you’re wondering whether motor trade insurance is the right choice for you, keep reading.

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Whether you’re trading vehicles, buying and selling cars on a part or full time basis, or repairing or servicing a customer’s car, you will need motor trade insurance. Wherever you have a customer’s vehicle in your care, custody or control, motor trade insurance is necessary. 

A road risk policy is the minimum legally required form of motor trade insurance, and means you’re insured to test vehicles on the road, collect or deliver a vehicle before and after repairing it. It also means you can drive vehicles that you’re buying and selling, although for this you would also need trade plates.

If you have a business premises that you trade from, you also need to cover your premises so combined motor trade insurance would be more suitable than road risk cover alone. 


The majority of motor trade insurance providers will only insure traders aged 25 and upwards. You can have younger drivers insured on the vehicles on the policy, as additional drivers, but not as the policyholder. 


To qualify for motor trade insurance, you need to have been a UK resident for 3 years or longer. 


Driving convictions don’t necessarily mean that you’re unable to take out a motor trade insurance policy, but you do have to declare any convictions when you apply for cover – it’s a legal requirement. 

We can offer motor trade insurance to drivers with convictions but this does depend on the conviction itself. Convictions can have an effect on insurance premium. 


At any time during your motor trade policy, but usually when you set it up, you’re likely to be asked to provide proof of trading to confirm that you’re eligible for motor trade insurance.

This proof of trading could be in the form of:

  • Copies of purchase invoices and sales receipts for vehicles bought or sold
  • Auction house invoices / auction house membership card
  • Proof of joint bank account for business partnerships
  • Copies of any invoices and receipts for part or work carried out on any customers vehicles
  • Submission of Accounts

If you’re still unsure as to whether motor trade insurance will be suitable for you, or if you’d like a quote, give us a call on 0121 248 9300, or fill out the form below.