Written by Michael Foote, Insurance Expert
Michael Foote is the founder of Quote Goat and has over 20 years experience working in finance & insurance. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city.
Do You Need Insurance to Deliver or Collect Customer Vehicles?
If you collect vehicles from auctions, deliver customer cars, or transport stock between locations, standard motor insurance won’t cover you. You need specific motor trade insurance that includes collection and delivery activities.
Driving without the right cover means you’re uninsured, regardless of whether you hold a policy for other parts of your business.
What Is Vehicle Collection and Delivery Insurance?
This type of cover protects you when driving vehicles you don’t own. It applies to:
- Collecting purchased stock from auctions or private sellers
- Delivering sold vehicles to buyers
- Picking up customer cars for repair, servicing or valeting
- Moving vehicles between premises or storage locations
- Transporting cars as a subcontractor for dealers or garages
Without declaring these activities, your motor trade policy won’t respond to claims arising from collection or delivery work.
Does Standard Motor Trade Insurance Cover This?
Not automatically. Most motor trade policies include road risk cover, but only for activities you’ve declared to your insurer.
If your policy lists you as a car dealer selling from home, it won’t cover you if you start collecting vehicles on behalf of customers or transporting stock for other traders. The journey purpose must match your declared business operations.
Always check your policy schedule before taking on new work.
What Type of Insurance Do You Need?
The cover required depends on what you’re doing and who owns the vehicle.
Driving Customer Vehicles
If you collect a customer’s car for servicing, repair or valeting, you need road risk insurance that explicitly covers driving customer vehicles.
This is essential for:
- Mobile mechanics
- Mobile valeters and detailers
- Recovery operators
- Garages offering collection and drop-off services
Your policy must state you’re authorised to drive vehicles you don’t own as part of your trade. For more on customer vehicle cover, see our guide on car jockey insurance.
Transporting Vehicles on a Trailer or Transporter
If you use a trailer, transporter or recovery vehicle to move cars, you’ll likely need:
- Goods in transit cover
- Carriage of vehicles cover
- Recovery vehicle insurance
Standard road risk policies don’t usually include this because the vehicles are being carried, not driven. Transporter work requires separate declaration and cover.
If you’re concerned about theft during transit, read our article on what happens if a vehicle is stolen during transit.
Subcontracting or Working for Other Traders
If you collect or deliver vehicles on behalf of other dealers, auctioneers or garages, tell your insurer. Some policies exclude subcontracted work or require it to be declared separately.
Failing to disclose this could invalidate your cover.
What Happens If You’re Stopped by Police?
Police can check the Motor Insurance Database (MID) instantly. If the vehicle you’re driving isn’t showing as insured, you risk:
- Fixed penalty and points on your licence
- Prosecution for driving without insurance
- Vehicle seizure
Even with a motor trade policy, you must prove the journey is part of your declared business. If the activity isn’t covered, your policy won’t help.
How to Make Sure You’re Covered
Before collecting or delivering any vehicle, confirm:
- Your policy schedule lists collection, delivery or customer vehicle movements as covered activities
- The journey purpose matches what you told your insurer you do
- You have the correct level of cover: road risk, recovery, or goods in transit
- The vehicle appears on the MID if required (not all trade policies add every vehicle, but your activity must be covered)
If you’re unsure, contact your insurer before driving. Clarifying now prevents expensive gaps in cover later.
For help understanding your options, see our guide on what level of motor trade insurance cover do you really need.
Common Scenarios and What Cover You Need
You Collect Cars from Auctions to Resell
You need motor trade road risk insurance that includes collecting purchased stock. This is usually covered if you’ve declared yourself as a car dealer.
You Deliver Cars You’ve Sold to Buyers
This should be covered under road risk as part of your sales activity, provided delivery is part of your declared trade.
You Pick Up Customer Vehicles for Repair or Servicing
You need road risk that explicitly covers driving customer vehicles, not just stock you own.
You Run a Mobile Valeting or Detailing Service
You need road risk cover for driving customer cars to and from their location. Standard public liability or treatment risk cover won’t protect you on the road.
You Transport Vehicles Using a Trailer or Truck
You need goods in transit or carriage of vehicles cover, plus appropriate insurance for the towing vehicle or transporter itself.
What About Occasional Collection and Delivery?
Even if you only collect or deliver vehicles once a month, you still need the right insurance. There’s no exemption for occasional use.
If it’s part of your trade, it must be covered. Part-time traders must declare all activities, even infrequent ones.
How Much Does Car Collection and Delivery Insurance Cost?
Premiums vary based on:
- The types of vehicles you handle
- How often you collect or deliver
- Whether you work for other traders or just your own business
- Your claims history and driving experience
- Whether you need goods in transit or recovery cover
Most insurers will ask for full details of your operations before quoting. The more transparent you are, the more accurate your quote.
For broader pricing guidance, see our article on how much does motor trade insurance cost in the UK.
Get the Right Cover for Your Business
Don’t assume your motor trade insurance covers every type of vehicle movement. Check your policy wording, speak to your insurer, and make sure collection and delivery activities are explicitly included.
If you’re ready to compare quotes or need cover that matches what you actually do, use the button on screen to get a motor trade insurance quote tailored to your business.
