Car Trader Insurance

What is car trader insurance?

Car trader insurance, also known as vehicle sales insurance, is cover designed for any business that sells vehicles. Whether you sell cars from your home or operate a showroom, it is important to have the right insurance in place should the unexpected happen.

No two vehicle sales operations are the same, so the cover is tailored to how you trade, what you drive and what else your business owns. Specialist motor trade brokers can advise on the levels of cover you need and build a policy around them.

Who needs car trader insurance?

Anyone who buys and sells vehicles as a business needs car trader insurance, from a part-time trader selling a few cars from home to a full showroom with staff. The type of policy that suits you depends on the size of your operation.

• Home-based and smaller traders: road risk only cover is primarily designed for smaller operations, including those run from home.
• Part-time traders: road risk cover is also typically used by anyone requiring part-time motor trade insurance.
• Larger businesses with premises: combined cover is designed for traders who also need to protect buildings, tools and equipment.

If you fall into a harder to insure category, such as a trader under 25 or a start-up motor trade business, having access to multiple insurers improves your chances of finding cover.

What does car trader insurance cover?

Car trader insurance covers you to drive vehicles owned by the business and your customers' vehicles when driving is part of running your business, with the option to add protection for your premises, tools and equipment. There are two main types of policy.

• Road risk only: covers you to drive any vehicle owned by the business, as well as customers' vehicles when driving them is required as part of your work.
• Combined cover: includes road risk cover plus a number of additional areas, including your buildings, tools and equipment.

As well as the standard levels of cover, insurance can be arranged for other areas of your business, including employers' liability and public liability. Public liability is designed to protect your business if a third party is injured or suffers an accident as a result of your work.

Car trader insurance is one type of motor trade insurance, so the same panel of specialist insurers can also help if your business carries out other motor trade activities.

What is not covered by car trader insurance?

A road risk only policy does not cover your buildings, tools or equipment; for those you need combined cover. Road risk cover is limited to driving vehicles owned by the business or customers' vehicles where driving is part of running your business.

Employers' liability and public liability are not automatically part of a standard policy and need to be arranged alongside it. One of the benefits of speaking with a specialist motor trade broker is that they can tell you exactly which areas your quote does and does not include, so you are neither under-insured nor paying for cover you do not need.

Do car traders need employers' liability insurance?

In most cases, yes: employers' liability insurance is required by law if your business has employees. It can be arranged alongside your car trader policy as part of a tailored quote.

Public liability insurance is also worth considering. It is designed to protect your business in the event of an accident or injury to a third party as a result of your work, such as a customer on your premises or someone affected while you are driving a vehicle for the business.

How much does car trader insurance cost?

There is no single price for car trader insurance, because every vehicle sales business is different and quotes are tailored to your operation. The cost of your policy is affected by factors including:

• Type of cover: road risk only is designed for smaller operations, while combined cover adds buildings, tools and equipment.
• Who needs to be insured: the cost of your policy will in part be affected by who drives under it. Adding a member of the team with a less than perfect driving record, such as previous convictions, will cost more.
• Your circumstances: traders under 25 and start-up motor trade businesses fall into harder to insure categories.
• Level of cover: over-insuring pushes up the price, which is why a specialist broker's advice on the levels of cover you actually need matters.

How can you keep the cost of car trader insurance down?

The most effective way to keep costs down is to compare quotes rather than renew the same policy year after year, because loyalty often does not pay. Many UK businesses renew without checking whether another specialist insurer would cover them for less.

• Compare: getting quotes from multiple vehicle sales insurance providers gives you a clearer view of the market and, if you are harder to insure, improves your chances of finding cover at all.
• Think about employees: who you add to the policy affects the price, so consider the driving records of anyone you name.
• Don't over-insure: a specialist motor trade broker can advise on the levels of cover you need and tailor the policy accordingly, so you are not paying for cover that does not fit your business.

How do you compare car trader insurance quotes?

With Quote Goat you complete one short quote form, and specialist motor trade insurers on a panel then contact you with quotes tailored to your business. Because quotes are tailored rather than priced live online, you can discuss your road risk or combined cover needs, employees and any liability cover with the brokers directly.

1. Fill in the quote form: complete a short one-page form with your details.
2. Compare tailored quotes: specialist insurers from the panel contact you with quotes and expert advice.
3. Buy your policy: purchase your preferred policy direct from the provider.

Quote Goat provides access to this comparison service; the policy itself is bought from the insurer or broker you choose.