Motor Trade Insurance

Motor Factors Dealer Insurance

Specialist insurance for motor factors and new or used dealers where vehicle stock, parts, accessories, premises, demonstration use, road risks and liability all need to be described clearly.

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New and used dealer cover Vehicle and parts stock Road risks and liability

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Overview Key Sections Example Claims Related Pages FAQs

Motor trade cover for motor factors and dealers

We help motor factors and new or used dealers compare cover for road risks, vehicle stock, parts stock, premises, liability, tools, demonstration use and business interruption.

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Home / Motor Trade Insurance / Motor Factors Dealer Insurance

Insurance for New and Used Motor Factors Dealers

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Our team specialises in commercial insurance across logistics, construction, manufacturing and property sectors. Get specialist cover with business insurance tailored to your industry. Insure24 is FCA authorised and regulated (FRN: 1008511).

Motor factors dealer insurance is for businesses selling new or used vehicles, parts, accessories, consumables, aftermarket products or mixed motor factor stock. It can suit forecourts, used vehicle dealers, trade counters, motor factor branches and businesses combining vehicle sales with parts or accessory supply.

The right policy depends on whether you hold vehicle stock, sell parts or accessories, allow demonstrations or test drives, collect or deliver vehicles, fit products, store customer vehicles, trade online, import stock or operate from a showroom, yard, warehouse or retail counter.

Motor factors dealer insurance for new and used motor trade businesses

What Can Motor Factors Dealer Insurance Cover?

Policies can be arranged around the parts of the business that create the most important losses, from vehicle stock and demonstration use to parts liability and premises protection.

Road Risks and Vehicle Stock

Cover for declared drivers using stock, customer or business vehicles for motor trade purposes, plus vehicle stock held at premises or in transit where accepted.

  • New and used vehicle stock
  • Demonstration, collection and delivery use
  • Road risks for declared motor trade drivers

Parts, Accessories and Premises

Protection for motor factor stock, parts, accessories, tools, contents, trade counters, showrooms, yards, warehouses and business interruption.

  • Parts, accessories, oils and consumables
  • Buildings, contents, money and equipment
  • Fire, theft, flood and interruption cover

Liability and Customer Exposure

Liability cover can respond to injury, property damage, product allegations, defective parts disputes and staff injury claims.

  • Public and products liability
  • Employers' liability where staff are employed
  • Review of fitting, advice and warranty exposure

What Insurers Usually Want to Know

Dealer and motor factor risks can vary sharply depending on the split between vehicle sales, parts stock, fitting, delivery and demonstrations.

Trade Activities

  • Whether you sell new vehicles, used vehicles, parts, accessories, consumables or mixed motor factor stock.
  • Whether you offer test drives, demonstrations, vehicle collection, delivery, valeting, preparation or road testing.
  • Whether products are retail-only, wholesale, fitted by staff, imported, own-branded, refurbished or supplied under warranty.
  • Whether the business trades from a forecourt, showroom, unit, warehouse, online platform, yard or trade counter.

Values and Controls

  • Maximum and average vehicle stock values, highest vehicle value and number of vehicles held overnight.
  • Parts and accessory stock values, theft-attractive items, oils, batteries, tools and customer-owned goods.
  • Premises security, CCTV, alarms, key control, yard protection, fire controls and stock records.
  • Driver details, trade plates, demonstration controls, claims history, turnover split and finance or warranty arrangements.

Example Claims

Motor factors dealer claims often involve vehicle stock, test drives, parts liability, theft and premises incidents.

Vehicle stock theft

A used vehicle or group of vehicles is stolen from the forecourt or yard after keys or security controls are compromised.

Demonstration accident

A vehicle is damaged during a test drive, collection, delivery or movement between sites under motor trade use.

Defective part allegation

A customer alleges a supplied part, accessory or consumable caused vehicle damage, injury or financial loss.

Motor Factors Dealer Insurance FAQs

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What does motor factors dealer insurance cover?

It can include road risks, vehicle stock, parts and accessory stock, premises, contents, public liability, products liability, employers' liability and business interruption depending on the operation.

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Can one policy cover new and used vehicles?

Potentially, subject to underwriting. Insurers need vehicle types, values, storage, demonstration use, driver details and whether stock is new, used, imported, financed or held on behalf of others.

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Do motor factors need product liability insurance?

Usually yes, especially where parts, accessories, oils, batteries, consumables or aftermarket products are imported, supplied under warranty, own-branded or fitted by the business.

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What information helps insurers quote?

Insurers usually need turnover split, vehicle stock values, parts stock values, highest vehicle value, driver details, premises security, demonstration controls, fitting activity and claims history.

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