Motor Trade Insurance

Looking for Motor Trade Insurance Quotes?

We understand that finding the right motor trade insurance policy can be a tricky business; but with the advice of our team of motor trade insurance specialists and a simple online quote system, we can get you covered, fast!

We take pride in offering flexible terms and accommodating unusual circumstances. And we can quote anything; from large dealerships to mobile mechanics, whatever your occupation within the motor trade, we can find cover to suit your needs.

It takes just a few minutes to complete our quote form, requiring your contact information, details about your motor trade business and the type of policy you’re looking for. You’ll soon receive a call from our team who will provide you with a quote that could save you up to 50% off the cost of your existing premium.

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What is Motor Trade Insurance?

Motor trade insurance is the policy you take out should you own a business involving vehicles, ranging from cars to trucks, providing cover for businesses that deal with customer’s vehicles as well as their own. When a motor trade business deals with customer vehicles, that vehicle essentially falls into ‘care, custody and control’, which is where this specialist insurance policy comes in.

The phrase ‘care, custody and control’ typically refers to vehicles that have been left in the possession of your business and are no longer covered by the owner’s own vehicle insurance.

Motor trade insurance covers a wide variety of business types, from vehicle sales and servicing to car valets, breakdown services, motor mechanics, car traders and more. Given that businesses are varied, it’s essential have every policy specifically tailored to each individual or firm.

Coverage can also extend to scrap, salvage and vehicle dismantlers, as well as full and part-time motor traders with road risk or stock of vehicles at trade premises. We specialise in the following areas:

Minder Policy – dealing with customers’ vehicles

  • Mechanical Repairer Insurance
  • Crash & Body Repairer Insurance
  • Valeting Insurance
  • Accessory Fitter Insurance
  • Exhaust & Tyre Fitter Insurance
  • Windscreen Fitter Insurance
  • Breakdown & Recovery Insurance
  • Vehicle Delivery Insurance / Trade Plate Insurance
  • Car Jockey Insurance
  • Long Stay Parker Insurance
  • Long Stay Parker Insurance
  • Vehicle Assessor Insurance
  • Breakers Yard Insurance
  • Repossession Agent Insurance

Trader Policy – dealing with your own vehicles

  • Car Dealer at Premises Insurance
  • Commercial Vehicle Importer & Exporter Insurance

Enthusiast Policy – for the part-time trader

  • Car Dealer at Home Insurance
  • The Restorer & Collector Insurance
  • Part-time Motor Trade Insurance
  • You can find out more about motor trade insurance cover by reading our FAQs at the top of this page.

Do I Need Motor Trade Insurance?

A motor trader without motor trade insurance is breaking the law. And this requirement does not only apply to limited companies; if you’re self-employed but still have responsibility for other people’s vehicles then you need motor trade insurance too.

The type of motor trade insurance you must put in place depends on the area of the motor trade you operate in. For example, if you have vehicles under your care, custody and control then you will need a motor trade insurance policy that gives you cover for customer’s vehicles. However, if you work in car sales and demonstrate, collect and deliver vehicles, the type of cover might vary. As its common for motor traders to operate in multiple areas, we will help you choose the cover which is best for all your business activities.

To qualify for a motor trade insurance policy, you must prove you are running a genuine business that generates income; it cannot be used simply to get cover for private individuals to drive multiple vehicles.

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What Type of Cover Does Motor Trade Insurance Provide?

The cover provided by each motor trade insurance policy varies depending on the risks you face. Despite the diverse range of businesses in the motor trade, it will typically include all or some of the following:

  • Road Risks Policy – this allows you to drive yours as well as others’ vehicles for the purpose of carrying out your motor trade activity.
  • Parts-Only Cover – Whilst the third-party option tends to be the most basic option, if your business doesn’t require vehicles to be driven on public roads, a parts-only cover could be enough – subject to the nature of your business.
  • Combined Motor Trade Insurance – This type of policy provides cover for road risks, equipment and your actual premises. This option will be cheaper than having several separate policies.
  • Employer’s Liability – as soon as someone is employed, this is a legal requirement. It can be added to your standard motor trade insurance policy if need be.
  • Public Liability – This is another type of cover that can be included as part of a single motor trade insurance policy. This protects you and your employees against any claim made by a member of the public.
  • Product Liability – If you fit parts to a vehicle that turn out to be defective, this covers you against any claims which may arise.
  • Material Damage – This provides cover for damage done to any stock vehicles or equipment you own, such as unsold vehicles you might own as a car salesman.
  • Extra Drivers – If your employees drive customers’ cars then you’ll need to decide between an ‘any driver’ policy or adding several named employees as extra drivers. In many cases, the latter will be cheaper.
  • Vehicle Types – You must make sure your insurance covers you and your staff to drive the necessary vehicle types, whether it’s cars, vans or HGVs.

Is Motor Trade Insurance Mandatory?

If you run a business in the motor trade, you are legally required to have a basic level of motor trade insurance. This applies to mechanics, car dealers, vehicle valets and other similar businesses whether a full-time or part-time business. The minimum level of cover required is third-party only, but liability cover is also recommended.

As well as putting the necessary insurance in place, anyone operating a business in the motor trade also has a legal responsibility to supply information to the Motor Insurance Database (MID).

How does Motor Trade Insurance Work?

The number of extras that can be included on a motor trade insurance policy is vast; so think carefully about the types of cover you may need. This will normally depend on your business type. And as some extras require additional fees, you need to make sure you do not already have the relevant cover from another source.

What Level of Motor Trade Insurance Cover Do I Need?

As with personal car insurance, there are three levels of cover to choose from: third party, third party fire and theft and comprehensive.

  • Third party – Legally, this is the minimum level of cover you must have to drive on public roads. This will cover you whilst driving vehicles, whether they are your customers or your own, for damage, loss or injury that you cause to third parties. This is the least expensive level of cover but also the most basic.
  • Third Party Fire and Theft – As the name suggests, this provides all the cover of Third Party but also protects you against damage from theft or fire related incidents.
  • Comprehensive Road Risks Policy – As well as the cover included above, a comprehensive road risks policy will also cover you for any accidental damage caused to your vehicles and those under your care, custody or control.
What they say


  • Very helpful staff and great prices. Very happy customer 🙂

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  • Jay’s customer service was excellent and the way he explained the policy was very clear and easy to understand… definitely recommend, ask for Jay.

  • Cubit insurance have offered me a great service today. Mohammed and Ozlem was very friendly, helpful and professional. I definitely recommend!

  • I am Happy to have cheap car insurance from cubit. I have observed cubit insurance as the best insurance company because of its cooperative and on time responsive staff.

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