Think Insurance, UK, Walsall
Three Cars

What Insurance Do You Need for Selling Cars?

If you want to sell cars for a living you will need insurance

Whether you’re already a vehicle salesman, or you’re thinking about getting into selling cars, being clued up on the insurance needed is a good idea.

Legal Requirement

Like regular car insurance, there is a legal minimum requirement if you want to become a motor trader and drive on UK roads. You must get a Motor Trade insurance policy and if you employ someone you must, as required by law, take out Employers’ Liability insurance - although there may be some exceptions such as certain family members.

motor trade station vector

Insurance Requirements

To be eligible for a Motor Trade insurance policy with Think you must have held a full UK driving licence for at least one year, been a resident in the UK for at least three years and you need to be involved in one of the various Motor Trade businesses.

person handing over car keys after purchasing a new car

What Insurance Does A Car Salesperson Need?

If you’re selling cars, there are certain types of insurance you may find useful, depending upon how your business is run. If you operate from a specific business premises then you may need Buildings & Contents cover. If it’s a garage or forecourt it might be wise to take out Public Liability insurance, so if a customer is injured on your property and successfully sues you, then your policy will cover this.

Cover for your stock of vehicles may also come in handy. Even if you only have a few vehicles and do not deem it necessary, if they get stolen you will likely be left out of pocket, particularly if they are of high value, so it is worth considering.

You may also find that having demonstration cover will be useful, as most customers will want to take a test drive before buying a vehicle, and could even look elsewhere if they can’t test drive your cars when they come to look at them.

If you deliver cars to your customers using a recovery truck or similar, then you may need Goods In Transit cover or carriage of vehicles cover. This can cover the vehicle if the vehicle transporter was involved in an accident or was stolen with the vehicle on it.

Get In Touch If You Need Motor Trade Insurance!

If you’re still unsure what insurance would be right for your car sales business then get in touch with Think Insurance today. Our team of experts will help guide you through your options, so click ‘Get a Quote’ below or call us on 0330 127 4100.