Discover essential insights into auto dealer insurance, including coverage types, legal protections, and tailored policies for automotive professionals. Protect your inventory, premises, and staff with comprehensive plans designed to suit your business needs. This guide helps industry players understand key coverage options and considerations for safeguarding their operations effectively.

What You Need to Know About Auto Dealer Insurance

Auto dealer insurance, often called motor trade insurance, is vital for those involved in automotive sales and services. It protects your vehicles, tools, premises, employees, and finances. This comprehensive policy covers everyday business activities, including vehicle accidents, theft, customer-related incidents, and damages. Suitable for dealerships, repair centers, MOT testing stations, towing companies, auction lots, importers, and customization shops, this insurance offers tailored coverage to meet your specific operational needs.

Coverage Options Available

Selecting appropriate coverage is essential. Policies can be customized based on your business. Main options include:

Road Risks
Critical for auto dealers, road risk policies can range from basic to full coverage. Third-party plans cover damages to others and injuries, with optional theft and fire protection. Full coverage includes collisions, vandalism, and employee-related accidents.

Combined Policies
Suitable for businesses with a physical location, these protect vehicles from theft and damage, and also cover premises and liability claims.

Part-Time Insurance
Designed for seasonal or occasional operations, this flexible coverage provides protection when needed without full-time costs.

Other coverages include:

Public Liability
Shields against claims from customers or visitors due to accidents or injuries on your property.

Employer’s Liability
Covers staff injuries or accidents, reducing your business’s liability risk.

Legal Support
Handles legal disputes related to liabilities or accidents; breakdown cover is also recommended for vehicle transportation safety.

Important considerations:

Insurers may require proof of active trading.

Insurance applies only to operational motor trade businesses.

Indemnity limits vary; some high-value or exotic cars may be excluded. Vehicles must be owned or in use for the business and insured if stored over 14 days.

A full policy covers premises, property damage, goods in transit, and other liabilities.

Coverages include property damage, business interruption, and motor trade-specific liabilities.

Property damage protection covers tools, inventory, and equipment.

Business interruption compensation manages income loss during repairs or closures.

Liability coverage defends against negligence claims, injuries, and damages.

Additional safeguards like workmanship warranties and sales indemnity mitigate specific industry risks.