Car trader insurance for buying and selling used cars, from home, part-time, on a forecourt or from a showroom, with road risk, stock and liability cover.
Car trader insurance for buying and selling used cars, from home, part-time, on a forecourt or from a showroom, with road risk, stock and liability cover.
Stock & trade-insHome or forecourtPart-time traders
Demonstration cover
Speak to a specialist 0330 808 1117
Car dealer insurance, also called car trader insurance, is a motor trade policy for people who buy and sell vehicles. It lets you drive stock, trade-ins and customer cars on the road, allows test drives, and can cover vehicles on your premises, plus public, products and employers’ liability.
Selling cars for profit on a personal policy? It won’t cover trade use, you need motor trade insurance
Your car dealer insurance depends on:
Your postcodeNumber of cars sold a yearValue of your stockWhere you sell fromDrivers and experiencePremises and securityStaff you employ
Whether you sell a few cars a month or run a showroom, the right car trade insurance depends on where and how you trade.
Cars, vans, trucks and pickups can all be covered on one dealer policy.
Tell us the vehicle types and values you trade so your stock and road risk limits are set correctly.
Insurers rate car dealers by how they trade. Choose the option closest to your business.
Motor trade policies only cover drivers and uses listed on your certificate. Choose named drivers for tight control, or any-driver cover for staff, and add demonstration cover for customer test drives.
Which cover does a car dealer need?
Which cover does a car dealer need?
Road risk is a legal requirement to drive stock on the road, and so is demonstration cover if customers drive your stock on a public road. Employers’ liability is often a legal requirement if you have staff. The other covers protect against the claims car dealers face most.
Road risk is a legal requirement to drive stock on the road, and so is demonstration cover if customers drive your stock on a public road. Employers’ liability is often a legal requirement if you have staff. The other covers protect against the claims car dealers face most.
| Type of cover | Legally required? | Why dealers need it |
|---|---|---|
Road risk insurance | Yes, to drive stock on the road | Collections, deliveries and viewings |
Demonstration cover | If customers drive on public roads | Customer test drives of your stock |
Stock on premises | No | Theft, fire or damage to cars on site |
Public liability | No | Customers injured on your forecourt |
Products liability | No | Claims linked to vehicles you sell |
Sales indemnity | No | Losses from cars with finance or theft markers |
Employers’ liability | Often, if you employ staff | Sales, prep and valeting staff |
Legal expenses | No | Disputes with customers over cars sold |
Top Tip
Run a full history and finance check on every car before you buy it. Cars with outstanding finance or a theft marker can be repossessed, leaving you out of pocket.
Insurance protects your business, but good selling practice prevents many claims and customer disputes in the first place.
Good practice checklist
History and finance checksPre-sale inspectionsAccurate descriptionsClear warranty termsLicence checks before test drivesSecure key storage
Car trader insurance has no fixed price. It depends on your postcode, how many cars you sell, your stock value and where it’s kept, whether you trade part-time or from premises, your drivers’ ages and experience and your claims history.
How to get car trader insurance
How to get car trader insurance
Getting car trader insurance takes four steps: tell us how you sell, confirm stock values and drivers, let us compare motor trade insurers, then choose your policy and start trading.
Getting car trader insurance takes four steps: tell us how you sell, confirm stock values and drivers, let us compare motor trade insurers, then choose your policy and start trading.
Tell us how you sell
Home, part-time, forecourt or showroom, and how many cars a year.
Confirm stock and drivers
Share your typical stock values, drivers and test drive needs.
We compare insurers
We search specialist motor trade insurers for car dealer cover.
Start trading covered
Choose your policy and receive your documents straight away.
We're with you all the way
UK-based specialist advisersAccess to specialist insurersNo obligation, just expert helpTrusted by car dealers and traders across the UK
Trusted by car dealers and traders across the UK
From part-time home traders to busy forecourts and showrooms, our customers trust Insurance Revolution to get the right cover and expert support when it matters.
From part-time home traders to busy forecourts and showrooms, our customers trust Insurance Revolution to get the right cover and expert support when it matters.
Car dealer guides
Car dealer guides
Practical advice for car traders on cover, compliance and selling safely.
Practical advice for car traders on cover, compliance and selling safely.
Insurance Revolution’s Guide to Motor Trade Insurance Policies
The motor trade industry is diverse and complex, encompassing everything from car dealerships and repair shops to valeting services and vehicle recovery businesses. Whether you’re buying and selling vehicles, offering repairs, or running a garage, motor trade insurance is a crucial component of protecting your business.
Common Motor Trade Insurance Claims and How to Avoid Them
Running a motor trade business comes with daily risks. Whether you operate as a used car dealer, mechanic, vehicle valeter, MOT centre, or mobile repair specialist, accidents can happen when you least expect them.
Why Would I Need Motor Trade Insurance?
“Do I or do I not need to take to motor trade insurance policy?” most of the motor traders are in this constant dilemma with the insurance scheme and are kind of clueless what benefits they would be getting by opting for the motor trade insurance. The law demands every motor trader to sign up with motor trade insurance policy and any negligence here would amount to violating the law.
Why Public Liability Insurance Is Crucial for Car Forecourt Traders
As a car forecourt trader, you’re not just selling vehicles; you’re inviting potential buyers onto your premises, where they interact with your staff, inspect vehicles, and often test drive them. While this activity is essential for your business, it also introduces various risks. This is where public liability insurance becomes crucial, alongside having the right level of forecourt cover.
Understanding Motor Trade Insurance as a Small Business Owner
As a small business owner in the motor trade industry, it’s crucial to understand the importance and nuances of motor trade insurance. Whether you’re selling vehicles, offering repair services, or dealing with vehicle parts, having the right insurance coverage can protect your business from a variety of risks.
Navigating the Road to Secure Trade: Unveiling the Considerations of Motor Trade Insurance
Opening your garage, paint shop, or car lot is exciting. However, many hidden pitfalls can cause you to blow out and take your business off the road. In this 2-minute read, we’ll highlight the different types of motor trade business insurance you need to protect your business should something unexpected happen.
What Are The Different Trades Covered Under Motor Trade Insurance?
Motor trade insurance is a legal requirement when you are in a motor trade business. You will have to sign up for a motor trade insurance policy if your business involves having clients’ vehicles under your custody, care or control. These would apply to businesses engaged in auto sales, including both new and pre-owned vehicles
Car dealer insurance FAQs
Car dealer insurance FAQs
Straight answers on car trader insurance, test drives and selling cars from home.
Straight answers on car trader insurance, test drives and selling cars from home.
Car trader insurance is a motor trade policy for people who buy and sell vehicles. It covers you to drive stock, trade-ins and customer cars on the road for your business, and can add demonstration cover, stock on premises and liability cover.
Still not sure which dealer cover you need?
Our motor trade specialists can match your cover to how and where you sell.
