Written by Michael Foote, Insurance Expert
If you’re running a motor trade business from your home, whether you’re buying and selling cars part-time, carrying out light repairs, or working as a mobile technician, your insurance needs can be different from those of traders with a physical premises.
This guide explains what home-based motor traders need to consider when choosing a policy, and how insurers typically assess this setup.
You don’t need a garage or workshop to get covered
Many traders mistakenly assume that motor trade insurance is only available to those with a unit, forecourt or commercial premises. In reality, insurers offer policies to part-time and home-based traders, but they may scrutinise your setup more closely.
Author note: it is often harder to find a broker that has access to the policies that are suitable for traders without a premises. One way to improve your chances of finding a policy is to compare motor trade insurance quotes from multiple providers.
Insurers will look at:
- Where you store vehicles (e.g. driveway, road, private land)
- Whether you work on vehicles at home, on the road, or both
- Whether customers visit your property
- Your proof of trading (receipts, invoices, stock turnover)
Some traders may find it easier to qualify for cover by focusing on road risk insurance policies rather than combined policies.
What is a road risk policy?
Road risk insurance is the most basic form of motor trade cover. It allows you to drive vehicles in connection with your trade, for example, test driving a car before sale, collecting a vehicle, or moving stock.
For home-based traders, a road risk policy is usually the most suitable option. It can cover:
- Your own personal vehicle(s)
- Customer or stock vehicles
- Named drivers (if relevant)
- Trade plates (if you’re using them)
You may want to explore tailored cover such as car trader insurance if you’re working from home and turning over stock regularly.
Storing vehicles at home: key risks
If you keep trade vehicles on your driveway or street:
- Insurers may limit how many vehicles you can have at one time
- You may need to prove ownership or regular turnover
- Theft and vandalism risks are higher, especially if vehicles are visible from the road
Insurers may also ask:
- Is your driveway gated?
- Do you use CCTV or motion lights?
- Are vehicles locked and secured overnight?
Failing to disclose where vehicles are stored can invalidate your policy.
What extras should you consider?
Depending on how you trade, you may need:
- Public liability insurance – if customers ever visit your home
- Tools cover – if you store trade tools or equipment on-site
- Sales indemnity – if you’re selling vehicles and want protection against disputes
Tips for getting accepted
Home-based motor traders are often seen as a higher-risk group unless they can prove they’re genuinely trading. To improve your chances:
- Keep detailed invoices, receipts, and stock logs
- Make sure your storage area is secure
- Be honest about how many vehicles you handle and where they’re kept
- Start with a basic policy and build cover as your business grows
