The cost of your motor trade insurance premium is determined by a number of factors. Find out what affects the cost of insurance and how to help reduce the premium.

Since no two insurance policies are the same, motor trade insurance prices differ. You’ll see a detailed explanation shortly, but the key takeaway is that insurers consider multiple factors when calculating your premium: from age to location to the value of vehicles you own. There are also a few other vital details in-between.

Therefore, it’s essential to consider seeking specialist advice from someone who understands your circumstances to help you get a suitable deal and adequate level of insurance. At Gallagher, our insurance specialists provide a personalised quote based on your specific requirements. That means only paying for what you require while knowing that your business has protection.

What is motor trade insurance?

Motor trade insurance could be considered essential for anyone who buys, sells, or repairs vehicles. This policy can cover various risks, including driving customers’ cars, theft of tools and equipment, damage to your premises, protection against liability claims, and more.

How much does motor trade insurance cost?

As you might have guessed, there’s no set fee. Motor trade insurance prices vary from person to person and insurer to insurer.

Of course, your business circumstances will affect how much you pay, but so will the type of cover you purchase, i.e. third party, third party fire and theft, or fully comprehensive. The wider the cover typically the higher your premium.

The different types of motor trade cover:

  • Third party – This is the minimum amount of cover, protecting against third party damage. Please note this doesn’t protect against harm to customers’ vehicles or your own.
  • Third party fire and theft – This is the same as third party cover, but provides extra protection against fire and theft caused to your motor trade vehicles.
  • Fully comprehensive – As the name suggests, this cover includes the most protection. Comprehensive cover insures your own vehicles and those owned by customers and third parties, including protection against accidents, liability claims, and more.

Which factors affect motor trade insurance cost?

The cover chosen has the greatest impact on motor trade insurance prices. However, there are several other factors insurers consider when calculating your fee, including:

  • The location of your premises.
  • The nature and size of your business.
  • The type and value of the vehicles in your possession.
  • How many people you employ.
  • The number of people included in your policy.
  • The ages of drivers, especially if they’re under the age of 25.
  • Your claims history.

Motor trade insurance costs also vary depending on if you choose any add-ons. For example, many insurance providers offer optional extras, such as liability insurance, business interruption cover, and demonstration protection. Usually, adding any of these extras to your policy increases the premium.

Although, you may not need additional cover. That’s why it’s a good idea to first speak with one of our specialist advisors, so you don’t pay for more than what your business needs.

Getting a suitable price for motor trade insurance

Your business is unique, so your policy should be too. For that reason, it’s wise always to compare a few quotes to help ensure you’re getting an appropriate price.

That said, remember it is worth considering if you are seeing a reduction in cover for a lower price. Perceivably more affordable policies might leave more money in your pocket, but do they feature the necessary cover to protect against relevant risks and eventualities? It’s worth checking, as choosing the cheap option could lead to more expensive bills in the future.

On the other hand, you may not need a fully comprehensive policy with bells and whistles. Therefore, you’ll want to speak with the insurer to ensure that cover is bespoke to your business’s requirements and only provides the protection you need. For example, if you don’t have any employees, paying for employers’ liability cover might not be necessary.

Thankfully, motor trade insurance doesn’t need to be expensive—as long as you opt for a reliable provider. With Gallagher, our insurance specialists work with you to learn about your business. We can provide you with a tailored quote with the features on offer that suit your requirements. Get started with your motor trade insurance quote, call us on 0800 062 2312 or get a quote online.


Policy limits and exclusions may apply, please see the policy wording for full terms and conditions.