Motor Trade for Dealerships

It’s extremely important to ensure that you have exactly the right cover if you run a car dealership. First and foremost, of course, your business and its premises should have the correct insurances in place to allow you to trade safely, effectively and legally. Then there’s the matter of the goods you deal in. As you’ll be very aware, cars are highly valuable products containing sophisticated engineering. They require regular checks and proper security, and, on top of that, they must also be properly insured.

Whether you are just starting up your own vehicular dealership or you wish to give your current company an overhaul in terms of its cover, looking into the correct insurance is a must. Insurance specialists, Rigby Financial,  will tell you a little more about the types of insurance covers that are available for dealerships below.

Why Insure the Vehicles I’m Selling?

As a trader, getting your vehicles insured doesn’t just mean that they’ll be covered while in storage or on display at your premises, but it can also mean that they’ll still be insured once they’ve been sold and are on their way to their new home – and even when their new owners begin to use them. This means you won’t have to foot the bill for any damage or mechanical faults they may incur either on the forecourt or in transit. You can also cover them against theft, fire and other issues that may otherwise prove very costly for you and your company.

What Can Be Covered Under a Motor Trade Policy?

When it comes to the cars you buy and sell, the team at Rigby Financial can provide cover for the following areas:

  • Material damage insurance
  • Road-risk cover
  • Defective workmanship insurance
  • Directors’ & officers’ cover
  • Professional & products indemnity insurance
  • Demonstration cover
  • Legal expenses cover

We can also cover the below areas that are not directly related to the performance or standard of your vehicles, but will improve the legal security of your dealership business:

  • Employers’ liability insurance
  • Business interruption cover
  • Offices & premises insurance


Your premiums will depend on a wide range of factors, including the type of vehicles you tend to trade in, whether you sell any rare or specially adapted makes or models, whether they are first or second hand, the location of your premises – along with other factors such as the local crime rate – and the places and people you ship to (whether they’re UK-based or located overseas, for example).

What Do I Need to Do When Looking for The Right Policy?

Because every car dealership is different, there are many elements that your insurer will need to consider when it comes to putting together the right policy for your business. You need to be sure that you inform any provider of all your company’s current and potential future requirements – from the location and level of security of your premises to the types of vehicles in which you trade, and any you’d like to work with in coming years. Doing this will mean that you won’t miss out on any cover you may later find that you need – whether today or in a year or more.

While paying into a good insurance policy may currently feel as if you’re spending money with no return, this will not be the case if your vehicles are damaged, stolen or suffer any mechanical issues. The costs inherent in rectifying any of these problems can be vast and, in the worst case, can threaten to cripple your business. Which is why, investing in proper cover from the start is worth it, and really can make all the difference.

What’s the Next Step?

Insurance specialists, Rigby Financial, can provide cover for both full and part-time traders and we offer affordable policies for traders with premises. When you purchase Motor Trade insurance via a simple monthly direct debit, you will be able to instantly access all vital documents related to your policy – including your Certificate of Motor Insurance – and you can easily log into our Motor Insurance Database.

Talk to our friendly team today to find out what we can do for you. You can either call us on 01744 886077, email us via or fill in our handy contact form – which can be found here. We’ll be more than happy to discuss your needs with you and help you to decide what is the right course of action and the right insurance policy for you and your car dealership.  

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