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Car Dealer Insurance Cost UK

Looking for Car Dealer insurance in the UK and want to know the cost, what it entails and how to get the best deal?

The cost of Car Dealer insurance in the UK isn’t a set price, and in fact there are many things that can affect the price of a car dealer’s Motor Trade insurance policy. This can vary from what type of cover you need, to the vehicles you buy and sell, and the location of the premises you operate from.

Level of Car Dealer Insurance Cover

In the UK there are three main types of cover that a motorist and a motor trader can have, and they often vary in both price and the level of protection they offer:

Third Party Only (TPO) – This type of cover is the most basic level of cover available, and the legal minimum cover you need to drive on a UK road. It’s designed to fulfil the legal requirement that you are insured, in case you are at fault in an accident. Due to the restricted amount of cover it is usually the cheapest level of cover.

Third Party, Fire & Theft (TPFT) – A Third Party, Fire & Theft policy offers a bit more protection. In addition to fulfilling the legal requirement above, it also covers fire damage to a car, theft and damage to the car caused by attempted theft.

Comprehensive – For those looking for the maximum level of protection then Comprehensive Motor Trade insurance would provide that. It insures you in the event of an accident, whether it’s your fault or not, so if the decision on which party is at fault cannot be reached or if the third party involved cannot be identified/found you are still covered. It also includes protection against theft, damage caused by attempted theft and fire. Due to the high level of protection offered it is often the most expensive level of cover, however the difference in price between TPFT and Comprehensive isn’t always that big.

Car Dealer Insurance Costs UK

Additional Car Dealer Insurance Products

When it comes to Motor Trade insurance, whether it’s for a car dealer, a mechanic or a valeter there are two main types of insurance:

Road Risk Car Dealer Insurance

This is a no frills, scaled down version of Car Dealer insurance and usually only includes the basic levels of cover mentioned above, plus one or two add-ons that are essential to a car dealer’s business, such as Demonstration cover. A Road Risk Car Dealer insurance policy is usually designed with a sole trader in mind, and one that operates from home.

Combined Car Dealer Insurance

For car dealers that are more established, with their own premises and a sizeable stock of vehicles, they may find that a Road Risk policy doesn’t give their business enough cover. This is where a Combined Car Dealer insurance policy comes in, and it can offer a lot more protection as it usually includes several additional Motor Trade insurance products. There isn’t a Combined Vehicle Sales insurance policy that suits every trader, so this type of insurance can also be customised depending on each trader’s requirements. It can cover a wide range of things that a car dealer may want protected including:

  • The Specific business premises you operate from
  • Stock of vehicles
  • Money kept on site
  • General stock stored at the premises
  • Business interruption
  • Carriage of vehicles
  • Public Liability
  • Employers’ Liability
  • Product Liability

Of course, not every car dealer will need everything that is listed above, and what is and isn’t included can all have an effect on the Car Dealer insurance cost.

car sales insurance

Get a Tailored Car Dealer Insurance Quote

As mentioned above, one trader can have a very different Vehicle Sales insurance policy to another, so it’s best to find an experienced specialist Motor Trade insurance broker such as ourselves, to help design a policy that’s perfect for you. If you’d like to speak to a member of our Motor Trade insurance team about a Car Dealer policy then click ‘Get a Quote’ below, or call 0800 221 8077.