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Road Risks and Demonstrations
Cover can be arranged for driving stock vehicles, collecting and delivering vehicles, MOT runs, customer demonstration drives and accompanied test drives where accepted by insurers.
Motor Trade Insurance
Vehicle Sales Insurance
Specialist insurance for vehicle sales businesses, used car dealers and motor traders where stock vehicles, road risks, demonstration drives, premises, customer visits, preparation work and liability exposures all need to be declared clearly.
Vehicle stock and forecourts
Road risks and demos
Premises and liability
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Working with insurer markets
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- CHUBB
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- AXA
Market access and cover availability depend on trade, disclosure, claims history, underwriting appetite and policy terms.
Insurance for Vehicle Sales Businesses
Vehicle sales insurance is designed for motor traders who buy and sell cars, vans or light commercial vehicles. It can suit used car dealers, small forecourts, online vehicle sales businesses, home-based traders, appointment-only dealers and businesses that prepare vehicles before sale.
A suitable policy should reflect how vehicles are sourced, stored, advertised, demonstrated, test driven, collected and delivered. Insurers will also want to know whether you carry out valeting, minor repairs, servicing, MOT runs, warranty work or finance-related activity.
Stock Vehicles and Premises
Protect vehicle stock at declared premises, forecourts or storage locations, along with office contents, signage, keys, tools and business interruption depending on the policy selected.
Liability and Sales Activity
Public liability, employers liability and products liability can help protect against claims involving customers, visitors, employees, sold vehicles, preparation work or business premises.
What Insurers Usually Want to Know
Vehicle sales risks can vary widely between a part-time online trader and a busy forecourt, so clear trading details help insurers quote accurately.
Sales Operation
- Cars, vans, light commercial vehicles, prestige, classic or imported vehicles
- New, used, salvage, part-exchange, auction or online sales activity
- Premises, forecourt, home-based, appointment-only or mobile sales model
- Valeting, servicing, repair, MOT, warranty or vehicle preparation work
Vehicles and Controls
- Maximum stock value, average vehicle value and vehicles held at one time
- Driver details, demonstration drives, test drives, collection and delivery
- Premises security, key security, CCTV, gates, lighting and storage locations
- Turnover, finance activity, staff numbers, subcontractors and claims history
Example Claims
Vehicle sales businesses can face claims involving road use, customer visits, stock damage, theft, sold vehicles and premises incidents.
Test Drive Incident
A vehicle is damaged during a test drive or demonstration. Road risk cover and clear demonstration procedures are key considerations.
Stock Vehicle Theft
Several stock vehicles or keys are stolen from a forecourt or storage location. Insurers will review stock limits and security arrangements.
Customer Injury
A customer trips on the forecourt or is injured while viewing a vehicle. Public liability cover can help defend and settle valid claims.
Related Motor Trade Pages
Explore nearby motor trade covers for vehicle movement, preparation, repairs and wider motor trade operations.
Vehicle Sales Insurance FAQs
What is vehicle sales insurance?
It is motor trade insurance for businesses that buy, sell, demonstrate, move, store or prepare vehicles for sale.
Do vehicle sales businesses need road risk insurance?
Usually, yes, if vehicles are driven, collected, delivered, demonstrated, test driven, taken to MOT or moved between premises as part of the business.
Can stock vehicles be covered?
Vehicle stock can often be covered at premises, forecourts or declared storage locations, subject to values, vehicle types, security and insurer terms.
What information helps insurers quote?
Useful details include vehicle types, stock values, premises, security, demonstration drives, driver details, annual turnover, online sales, valeting or repair work and claims history.