Written by Michael Foote, Insurance Expert
Whether you run a mobile repair service or a permanent garage, working as a mechanic comes with distinct insurance risks. Choosing the right policy isn’t just about having legal cover to drive, it’s about protecting your tools, your premises, your customers’ vehicles, and your liability as a tradesperson.
This article outlines what mechanics typically need to consider when arranging motor trade insurance.
Start by Defining the Type of Work You Do
Insurers will look closely at:
- Whether you operate from fixed premises or work mobile
- What types of repairs or diagnostics you carry out
- Whether you modify, test, or resell vehicles
- If you store customer vehicles overnight
A mobile mechanic with no premises may only need a tailored road risk policy with public liability. A garage-based operation will usually need a combined motor trade policy that includes premises, tools, and employer’s liability if you take on staff.
Public Liability and Customer Vehicle Risk
If a customer is injured while visiting your premises, or their vehicle is damaged in your care, public liability and CCC (care, custody and control) cover are essential.
Many mechanics assume their policy automatically includes this, but in some cases it’s an optional extra. You’ll want to confirm:
- Whether damage to vehicles in your care is covered
- If test drives or collection/drop-off are included
- What happens if a repair leads to a future fault
If you frequently road test vehicles, you’ll need to specify that with your insurance provider, especially if more than one employee drives.
Covering Tools and Diagnostic Equipment
Tools are a major cost centre for most mechanics, from hand tools to advanced fault readers, lifts, compressors, or diagnostic machines. Make sure your policy covers:
- Theft or vandalism
- Fire or flood damage
- Equipment stored in vans or temporary workspaces
If you’re a mobile mechanic, be aware that many policies exclude tool cover overnight in unattended vehicles. You may need additional cover or secure storage proof to ensure claims will be accepted.
Do You Need Employers’ Liability?
If you employ anyone – including apprentices, casual staff, or work experience placements, you’ll likely need employers’ liability insurance by law. It protects you against claims arising from workplace injuries or accidents.
Combined motor trade policies often include this as a standard section, but road risk-only cover may not. If in doubt, ask whether your chosen policy is suitable for an employer setup.
Specialist Services and Modifications
If you offer niche services (e.g. remapping, welding, hybrid/electric servicing), declare this clearly. Some insurers exclude cover for:
- Modified vehicles
- Performance enhancements
- Electric battery work
- High-value imports
You may need to speak to a broker to find a provider who accepts specialist risks, especially if you’re doing structural or custom work. If you, submit the quote form via our site & you can speak to up to 5 specialist brokers.
