The UK’s motor trade isn’t a single highway; it’s a sprawling network of B-roads, city streets, and specialist tracks. From the gleaming floors of a main dealership to the dedicated workshop of a part-time restorer, every business plays a vital role in keeping the nation moving.
But this incredible variety brings complexity, especially when it comes to insurance. Misunderstanding your business category isn’t just a label mix-up; it can lead to dangerous gaps in your cover.
So, where do you fit in? Let’s navigate the main categories of the motor trade and pinpoint the insurance that truly protects your business.
1. The Deal Makers: Vehicle Sales
If your business is built on buying and selling, you’re in sales. This is a broad category, covering everything from franchised dealerships with manufacturer ties to used car specialists operating from a forecourt or even their own home.
- Examples: New and used car dealerships, classic or prestige car specialists, import/export traders.
- Your Insurance Focus: As a seller, your biggest assets are constantly in motion or on display. Road Risk insurance is non-negotiable, covering you for test drives and moving vehicles between locations. Equally important is Stock of Vehicles cover, which protects your valuable assets from theft, fire, or damage while they sit on your forecourt or driveway.
2. The Fixers: Servicing, Maintenance & Repairs
You are the backbone of the industry, keeping vehicles safe and reliable. This category includes anyone who diagnoses, maintains, or repairs mechanical and electrical systems.
- Examples: General repair garages, MOT testing stations, mobile mechanics, auto electricians, tyre and exhaust fitters.
- Your Insurance Focus: When you operate from a fixed premises, your risks are concentrated in one place. A Motor Trade Combined policy is essential, bundling together Public Liability (for customers on-site), Employers’ Liability (a legal must for your team), and crucial cover for your building, ramps, and diagnostic tools.
3. The Artists: Bodywork & Cosmetic Services
You make vehicles look their best, whether it’s after an accident or for a custom finish. Your work is all about precision and appearance.
- Examples: Bodyshops, spray painters, paintless dent removal experts, alloy wheel refurbishers, vehicle wrappers.
- Your Insurance Focus: Your workshop contains specialist equipment like spray booths and mixing schemes. Your policy must cover these high-value assets. Furthermore, you often have customer vehicles on-site for extended periods, so robust cover for vehicles in your care, custody, and control is critical.
4. The Lifesavers: Recovery, Transport & Storage
You are the fourth emergency service for motorists and a vital logistics partner for the trade. You move vehicles when they are unable to move themselves.
- Examples: Breakdown and accident recovery services, vehicle transporters, secure storage facilities.
- Your Insurance Focus: Your vehicle is your business. A standard policy won’t do. You need specific Recovery Truck cover. Critically, you also need Goods in Transit insurance to protect the value of the vehicle you are carrying should an incident occur on the road.
5. The Enhancers: Vehicle Preparation & Personalisation
You add the finishing touches that make a car stand out. Your work turns a standard vehicle into something special, focusing on detail, cleanliness, and custom features.
- Examples: Valeting and detailing services, performance tuners, window tinters, in-car entertainment fitters.
- Your Insurance Focus: If you’re mobile, your policy needs to cover you for working at different locations, including customer homes or business parks. Tools and equipment in transit cover is essential, and if you work on high-performance vehicles, you must declare this to your insurer.
Pinpointing Your Trade: Why It’s Crucial
Being crystal clear on your business activities isn’t just an administrative task. It allows you to:
- Prevent dangerous and costly gaps in your policy.
- Ensure you’re not paying for cover you don’t need.
- Market your specialist services more effectively to the right customers.
Ready to Find Your Perfect Fit?
Whether you’re restoring a classic in a quiet workshop or running a bustling MOT station, your insurance needs to match your ambition. One size rarely fits all. Understanding your specific category is the first step to securing a policy that lets you operate with confidence, knowing you are fully protected.
Our commercial motor insurance covers vehicles used for business purposes, allowing you to insure confidently. Contact us now for more information.