Best Motor Trade Insurance UK 2026

UK motor traders, from part-time car dealers to full-time garages, need a motor trade policy to drive vehicles they do not own in connection with the trade and to meet legal road risk requirements. This guide reviews five UK motor trade insurance specialists, comparing road risks and combined cover, who each suits, and how to verify them, using the FCA Register, GOV.UK, and the providers' documentation. Kael Tripton does not provide quotes, does not route enquiries to brokers, and does not earn commission from any provider mentioned.

How motor trade insurance works in the UK

Motor trade insurance covers people whose business involves vehicles they do not own, such as repairers, valeters, MOT testers, and car dealers. A standard private motor policy does not cover driving customers' vehicles in the course of business, so a dedicated motor trade policy is required. GOV.UK confirms that motor traders must hold this specific cover and supply a Motor Trade Insurance Certificate to obtain trade licence plates.

The foundation is road risks cover, which lets a trader drive vehicles in connection with the business. Like private cover, it is available at three levels: third party only, third party fire and theft, and comprehensive. Under the Road Traffic Act 1988, third party is the legal minimum for using a vehicle on a road. Traders who only buy and sell from home may need road risks alone, while those with premises usually need more.

A combined motor trade policy bundles road risks with other business covers: premises and contents, customers' vehicles on site, tools and stock, money, and employers' and public liability. Employers' liability is compulsory once staff are employed, with a legal minimum of £5 million. Every firm arranging or underwriting motor trade cover must be FCA-authorised, verifiable on the FCA Register at register.fca.org.uk, with disputes referable to the Financial Ombudsman Service.

Providers compared at a glance

Cover focus reflects each provider's published documentation. FCA reference numbers are taken from the Financial Conduct Authority Register, accessed June 2026. Where a number is not shown, confirm the authorised firm on the Register before buying.

Tradex

Who Tradex is

Tradex Insurance Company Limited is authorised by the FCA under reference 202917. It is a specialist motor trade, taxi, and commercial motor insurer based in London, underwriting cover distributed through brokers.

What the policy covers

Tradex underwrites road risks cover at third party, third party fire and theft, and comprehensive levels, plus combined motor trade policies adding premises, stock, and liability sections. Cover is built around the trade activities declared.

Notable exclusions

Vehicles outside the declared trade use, drivers not named or within the permitted driver criteria, and risks outside the chosen sections are typically excluded.

Policy limits and excess

Limits for liability and combined sections are set in the policy schedule based on the business profile. Excess applies per section.

Who this policy suits

Motor traders and dealers who want cover from a specialist motor trade underwriter arranged through a broker.

Plan Insurance

Who Plan Insurance is

Plan Insurance Brokers operates under The Plan Group, authorised by the FCA under reference 307249. It is a specialist broker with long experience arranging motor trade cover.

What the policy covers

Plan Insurance arranges road risks and combined motor trade policies from a panel of insurers, covering driving of trade vehicles plus premises, tools, and liability sections depending on the policy chosen.

Notable exclusions

Exclusions depend on the underlying insurer and typically include non-declared trade use and drivers outside the permitted criteria.

Policy limits and excess

Limits and excesses vary by the chosen insurer and the cover selected at quotation.

Who this policy suits

Traders who want a specialist broker to arrange and service the policy across multiple insurers.

C&C Insurance Brokers

Who C&C Insurance Brokers is

C&C Insurance Brokers Ltd is authorised by the FCA under reference 309053. It arranges motor trade and other specialist insurance through insurer partners.

What the policy covers

C&C arranges road risks and combined motor trade cover, including liability and premises sections, tailored to the trade activities of the business.

Notable exclusions

Standard motor trade exclusions apply, including non-declared use and drivers outside the policy criteria, with exact terms set by the underlying insurer.

Policy limits and excess

Limits and excesses are set by the chosen insurer and the cover selected.

Who this policy suits

Businesses with specialist trade risks that want a broker to place cover with a suitable insurer.

SEIB Insurance Brokers

Who SEIB Insurance Brokers is

SEIB Insurance Brokers Limited is an established UK broker. Its FCA reference should be confirmed on the FCA Register before purchase. It has arranged motor trade and commercial cover for many years.

What the policy covers

SEIB arranges motor trade road risks and combined cover from insurer partners, with premises, tools, and liability sections available depending on the business.

Notable exclusions

Exclusions follow the underlying insurer's wording and typically include non-declared trade use and ineligible drivers.

Policy limits and excess

Limits and excesses are set by the insurer and cover selected at quotation.

Who this policy suits

Established trade businesses that want a broker with long experience in commercial and motor trade cover.

Performance Direct

Who Performance Direct is

Performance Direct is a UK motor trade insurance broker. Its FCA reference should be confirmed on the FCA Register before purchase. It arranges cover for part-time and full-time traders.

What the policy covers

Performance Direct arranges road risks and combined motor trade policies from a panel of insurers, including options for traders working from home and those with premises.

Notable exclusions

Exclusions depend on the underlying insurer and commonly include non-declared use and drivers outside the permitted criteria.

Policy limits and excess

Limits and excesses are set by the chosen insurer and the cover selected.

Who this policy suits

Part-time and full-time motor traders looking to compare options across insurers through a broker.

How to compare motor trade insurance objectively

Define your trade activities first. The cover you need differs between a home-based part-time dealer, a valeter, an MOT garage, and a full forecourt dealer. Declaring activities accurately matters, because non-declared use is a common reason claims are disputed.

Choose the road risks level and decide whether you need combined cover. Third party is the legal minimum under the Road Traffic Act 1988, but comprehensive protects the vehicles you drive. If you hold stock, have premises, or employ staff, a combined policy adds the property and liability sections, including the compulsory employers' liability cover once you have employees.

Check the permitted driver criteria, age limits, and how customers' vehicles on site are covered. Then verify the insurer or broker on the FCA Register before buying. If a claim is later declined and you disagree, eligible complaints can be escalated to the Financial Ombudsman Service once the firm's complaints process is complete.

Frequently asked questions

Is motor trade insurance a legal requirement?

Using any vehicle on a UK road requires insurance meeting at least third-party requirements under the Road Traffic Act 1988. Motor traders need a specific motor trade policy, and a Motor Trade Insurance Certificate must be supplied to obtain trade licence plates, according to GOV.UK.

What does motor trade road risks cover?

Road risks cover lets a trader drive vehicles in connection with the business. It is available at third party, third party fire and theft, and comprehensive levels, mirroring private motor cover but for trade use.

What is combined motor trade insurance?

A combined policy adds business covers to road risks, including premises and contents, customers' vehicles on site, tools, stock, money, and employers' and public liability. It suits traders with premises or staff.

Do part-time traders need motor trade insurance?

Yes. Anyone buying and selling vehicles or working on vehicles they do not own as a business generally needs motor trade cover, even part time. The policy must reflect the actual trade activities to respond to a claim.

How do I check a motor trade insurer is authorised?

Search the firm's name or reference number on the FCA Register at register.fca.org.uk. The Register confirms authorisation and the activities a firm is permitted to carry out for both insurers and brokers.

What if my motor trade claim is rejected?

Use the insurer's or broker's internal complaints process first. If you remain dissatisfied, you can refer an eligible complaint to the Financial Ombudsman Service, which independently reviews disputes between smaller businesses and FCA-regulated firms.