Motor Trade Insurance

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A motor trade insurance policy is taken out by someone who runs a business involving anything to do with cars and vans such as buying and selling cars, repairing and servicing or valeting and running a garage or MOT centre. The size of your business does not matter and whether you work full or part time, cover can be arranged for your needs.

Milestone Insurance can offer you Motor Trade Road Risk Insurance and Motor Trade Combined Insurance.


What is Motor Trade Road Risk Insurance?

Motor Trade Road Risk Insurance is designed for motor traders operating their own business from home or from business premises, who require risk cover for their own vehicles or vehicles in their custody or control for motor trade purposes. The types of cover include:

Third party only

By law, third party only cover is required by a motor trader if the trader:

  • Repairs, services or restores vehicles
  • Is a vehicle fitter, mobile tuner, or valet
  • Runs an MOT centre or garage
  • Sells and buys vehicles for profit
  • Drives his / her own vehicle or that of a customer on the public roadway or has any of those vehicles on the business premises or at the customer’s or his / her home address.

Any driver who is named on the policy is permitted to drive any vehicles in relation to the motor trade and are covered for damage to the other party’s vehicle only.


Third Party Fire and Theft

Third party fire and theft covers a trader for all things mentioned above plus the loss, damage, fire or theft to vehicles that are under the motor trader’s control. Any third party injury, damage or claims are also covered.



Comprehensive covers all things included in third party only and third party fire and theft policies as well as accidental damage to any vehicles that the motor trader owns or has responsibility for.


What is Motor Trade Combined Insurance?

When motor traders do decide to start new business ventures, road risk cover may not always be the ideal option. When operating a new business you will have to make a considerable investment in the tools and equipment needed to do the job.

In many cases, businesses also hold significant levels of stock. Trading from premises brings with it additional risks to consider such as damage to the buildings themselves. A combined policy protects against damage to property owned by the motor trader as well as their liability exposure.

At Milestone, we offer comprehensive combined insurance policies designed all under one policy that can be tailored to suit you. We can provide cover for all your vehicles and business premises.


Our policies can include the following covers:

  • Business interruption
  • Material damage and equipment breakdown
  • Loss of MOT license
  • Liability cover
  • Wrongful conversion
  • Engineering inspection
  • Legal expenses
  • Road risks


Motor Trade Liability Insurance

This includes public liability, employer’s liability and sales and service liability. With employer’s liability the motor trader is covered in the event of any employees sustaining an injury. With public liability the motor trader is covered in the event they cause an injury to the public or damage property. With sales & service cover the motor trader is insured for injury or accidental damage caused by them to any property due to the buying or selling of new or used vehicles, selling or supplying of products connected with the motor trade and the alteration, maintenance, inspection or repair of any vehicles under the motor traders authority.

At Milestone, we offer comprehensive insurance policies for companies or sole traders who need to buy, sell and repair motor vehicles or handle vehicles that they may not own.

We can insure most car models and commercial vehicle types, with benefits for new and existing customers including low premiums, low excess payments and flexible instalment options.


With commissioned authority allowing us to underwrite our own motor trade schemes we are also able to offer specialist cover for:

  • Sports & high performance vehicles
  • Classic & vintage cars
  • Imports & exports


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