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Why Public Liability Insurance Is Crucial for Car Forecourt Traders
As a car forecourt trader, you’re not just selling vehicles; you’re inviting potential buyers onto your premises, where they interact with your…
Car DealerInsurance
Car Dealer Insurance
Car trader insurance for buying and selling used cars, from home, part-time, on a forecourt or from a showroom, with road risk, stock and liability cover.
Car trader insurance for buying and selling used cars, from home, part-time, on a forecourt or from a showroom, with road risk, stock and liability cover.
Stock & trade-insHome or forecourtPart-time traders
Demonstration cover
Speak to a specialist 0330 808 1117
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What is car dealer insurance?
Car dealer insurance, also called car trader insurance, is a motor trade policy for people who buy and sell vehicles. It lets you drive stock, trade-ins and customer cars on the road, allows test drives, and can cover vehicles on your premises, plus public, products and employers’ liability.
Selling cars for profit on a personal policy? It won’t cover trade use, you need motor trade insurance
Your car dealer insurance depends on:
Your postcodeNumber of cars sold a yearValue of your stockWhere you sell fromDrivers and experiencePremises and securityStaff you employ
Car trade insurance for every way you sell
Whether you sell a few cars a month or run a showroom, the right car trade insurance depends on where and how you trade.
Whatever vehicles you trade
Cars, vans, trucks and pickups can all be covered on one dealer policy.
Cars
Vans
Light commercials
Trucks
Pickups & 4x4s
Tell us the vehicle types and values you trade so your stock and road risk limits are set correctly.
Part-time, full-time or premises-based?
Insurers rate car dealers by how they trade. Choose the option closest to your business.
Who can drive your stock?
Motor trade policies only cover drivers and uses listed on your certificate. Choose named drivers for tight control, or any-driver cover for staff, and add demonstration cover for customer test drives.
Which cover does a car dealer need?
Which cover does a car dealer need?
Road risk is a legal requirement to drive stock on the road, and so is demonstration cover if customers drive your stock on a public road. Employers’ liability is often a legal requirement if you have staff. The other covers protect against the claims car dealers face most.
Road risk is a legal requirement to drive stock on the road, and so is demonstration cover if customers drive your stock on a public road. Employers’ liability is often a legal requirement if you have staff. The other covers protect against the claims car dealers face most.
| Type of cover | Legally required? | Why dealers need it |
|---|---|---|
Road risk insurance | Yes, to drive stock on the road | Collections, deliveries and viewings |
Demonstration cover | If customers drive on public roads | Customer test drives of your stock |
Stock on premises | No | Theft, fire or damage to cars on site |
Public liability | No | Customers injured on your forecourt |
Products liability | No | Claims linked to vehicles you sell |
Sales indemnity | No | Losses from cars with finance or theft markers |
Employers’ liability | Often, if you employ staff | Sales, prep and valeting staff |
Legal expenses | No | Disputes with customers over cars sold |
Top Tip
Run a full history and finance check on every car before you buy it. Cars with outstanding finance or a theft marker can be repossessed, leaving you out of pocket.
Selling used cars? Know your responsibilities
Insurance protects your business, but good selling practice prevents many claims and customer disputes in the first place.
Good practice checklist
History and finance checksPre-sale inspectionsAccurate descriptionsClear warranty termsLicence checks before test drivesSecure key storage
How much is car dealer insurance?
Car trader insurance has no fixed price. It depends on your postcode, how many cars you sell, your stock value and where it’s kept, whether you trade part-time or from premises, your drivers’ ages and experience and your claims history.
How to get car trader insurance
How to get car trader insurance
Getting car trader insurance takes four steps: tell us how you sell, confirm stock values and drivers, let us compare motor trade insurers, then choose your policy and start trading.
Getting car trader insurance takes four steps: tell us how you sell, confirm stock values and drivers, let us compare motor trade insurers, then choose your policy and start trading.
1
Tell us how you sell
Home, part-time, forecourt or showroom, and how many cars a year.
2
Confirm stock and drivers
Share your typical stock values, drivers and test drive needs.
3
We compare insurers
We search specialist motor trade insurers for car dealer cover.
4
Start trading covered
Choose your policy and receive your documents straight away.
We're with you all the way
UK-based specialist advisersAccess to specialist insurersNo obligation, just expert helpTrusted by car dealers and traders across the UK
Trusted by car dealers and traders across the UK
From part-time home traders to busy forecourts and showrooms, our customers trust Insurance Revolution to get the right cover and expert support when it matters.
From part-time home traders to busy forecourts and showrooms, our customers trust Insurance Revolution to get the right cover and expert support when it matters.
Car dealer guides
Car dealer guides
Practical advice for car traders on cover, compliance and selling safely.
Practical advice for car traders on cover, compliance and selling safely.
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Car dealer insurance FAQs
Car dealer insurance FAQs
Straight answers on car trader insurance, test drives and selling cars from home.
Straight answers on car trader insurance, test drives and selling cars from home.
Car trader insurance is a motor trade policy for people who buy and sell vehicles. It covers you to drive stock, trade-ins and customer cars on the road for your business, and can add demonstration cover, stock on premises and liability cover.
Still not sure which dealer cover you need?
Our motor trade specialists can match your cover to how and where you sell.