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4 Reasons to Need a Motor Trader Insurance Policy

Certain types of occupations create situations where employees need to drive the vehicles of customers and be insured when doing it. If you are the owner or manager of one of these types of companies, then you will want to know where you can obtain the most competitive quotations for this specialist kind of insurance, which is known as motor trade or motor trader insurance.

Fortunately, companies such as exist to service this need.

There are four reasons why a company might need motor trader insurance if they do not have it already. If you do currently have it, then it is still useful to know who else around you has it too, and despite how specialist a field of insurance it is, to know that it is still possible to obtain a more competitive quotation.


Whatever customer service industry you are in, it will be about pleasing the customer. So, for this reason, many mechanics or garages will offer the service of collecting customer vehicles to work on. Also, to diagnose a particularly challenging problem with a vehicle, it may be necessary for the mechanic to drive the vehicle for a reasonable distance on the open road. These circumstances are where a motor trader insurance policy is required to cover the mechanic driving the vehicle. Then, they are legally covered for any damage that might happen to a customer’s vehicle.

Car Dealers

Those who sell cars will want to move them around the selling space as well as take them on test drives. A motor trader policy covers the car should any harm come to it while in the hands of the employee. The smallest amount of contact with another car can result in damage for both that can be expensive to put right, depending on the model. It should be noted, though, that some luxury brands might be excluded from motor trader insurance, so you will need to check that all the vehicles on the car forecourt, or inside the showroom, are covered for staff to move around. The solution, otherwise, is not to move the expensive cars around. It may be that they stay inside a showroom.

Auction Houses

Second-hand cars will be sold at auction. The staff will need to move these cars around and often deliver them to the buyers that prefer not to collect their cars. Not all auction houses will hire firms to deliver their sold items, they will often do it themselves to keep costs down.


Anyone who cleans cars for a living may want to move the cars that they have cleaned into a different place from the cars that they are still working on. If this is the case, motor trader insurance will be required. Not only does moving the cars around make it clear which ones are ready for collection but it stops the clean ones from becoming dirty again before the customer has even had a chance to collect. Also, like with the motor mechanic, a service can be offered that delivers a vehicle back to a customer, meaning that the valet or the valet’s assistant will need insurance to cover them to drive someone else’s vehicle that they are not a named driver for. This is where motor trader insurance becomes an invaluable option. The alternative is for a valet to be restricted in their work and not be able to offer the level of service a customer may expect.

With all these trades, the risks of the individual business owner and their employees to the insurer will be assessed. The emphasis concerning the assessment will be based heavily on the age of the drivers that the company employees.

In conclusion, these are a few occupations that will benefit from being able to take out a motor trader insurance policy and so provide the reasons to need one. This is a policy that will offer third-party road risk and cover against damage, injury, or death when driving a customer’s car. The advantage of motor trader insurance policies is that they will allow any car to be driven. However, some will restrict some types of vehicles. Namely, the ones that may result in the highest insurance claims. Generally, though, the kinds of cars dealt with will be insurable.

Finally, you should be 21 years of age or older to qualify for motor trader insurance. Where drivers are over 30 years of age, cheaper insurance will be obtainable.

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