Motor trade insurance

Forecourt stock theft and key security for motor traders

Reviewed by the Apex broking team · Last reviewed 2026-10-27

Stock theft cover pays for vehicles you own for sale that are stolen, subject to key security conditions and stock limits set in your motor trade policy. It matters because theft claims commonly turn on how keys were kept, not on how the car was taken.

Part of: Motor trade insurance

In short

Vehicle thieves increasingly target keys and keyless entry signals rather than breaking in. Motor trade policies respond with key security conditions, such as keys removed and locked away out of hours, alongside limits on the value of stock in each location and on any one vehicle. Claims commonly fail where keys were left in cars, stock exceeded the limit, cars were stored somewhere not declared, or a test drive customer drove off with the car. The Insurance Act 2015 restricts how insurers can rely on some breaches. Cover is subject to the insurer's acceptance and the policy terms.

How stock is being stolen

The Home Office's Crime and Policing Act 2026 serious crime factsheet gives a picture of the threat. It reports 132,412 thefts of a motor vehicle recorded by police in the year ending September 2024. It cites Crime Survey for England and Wales data showing a manipulated remote locking signal was used in 36% of vehicle thefts between April 2019 and March 2020, and a Metropolitan Police estimate that electronic devices are used in about 60% of vehicle thefts in London.

The Crime and Policing Act 2026, which received Royal Assent on 29 April 2026, includes new offences covering electronic devices used in vehicle theft, such as signal jammers and amplifiers. The factsheet gives a maximum penalty of five years' imprisonment, an unlimited fine or both. Provisions of the Act come into force on dates set by commencement regulations, so check whether these offences are in force yet.

For traders, the common routes are:

Relay and signal attacks on keyless entry cars parked on a forecourt or drive.
Key theft from offices, homes or unattended desks, then driving cars away.
Theft by deception, where a buyer takes a car on a test drive and does not return, or pays with a fraudulent transfer.

Key security conditions insurers commonly use

Wordings vary, but these conditions appear often on motor trade policies:

Condition	What it usually means	How to evidence it
Keys removed when unattended	No keys left in or on a vehicle that is not attended	Staff procedure, spot checks
Keys secured out of hours	Keys kept in a locked safe or key cabinet, sometimes away from the vehicles	Key safe, key log, CCTV of the key area
Vehicles locked and alarmed	Vehicles locked with security devices set	Closing checklist
Premises alarm set	Intruder alarm set when the premises are closed	Alarm logs
Keyless fobs protected	Some insurers ask for fobs to be stored in signal-blocking pouches or boxes	Written key procedure

Read the exact wording. Whether a condition is a warranty, a condition precedent or a simple condition changes its effect. See warranties and conditions explained.

Forecourt and storage protection

Insurers commonly ask where stock is kept out of hours and what stops it being driven away. Typical questions cover:

whether cars are kept inside a locked building, a fenced compound or on an open forecourt;
physical barriers such as posts, gates or vehicles parked to block exits;
lighting, monitored CCTV and intruder alarms;
whether any stock is kept at home or on the street, and how many cars.

Home-based traders face particular questions, because a drive or street parking is rated differently from a secured unit. See motor trade insurance without premises.

Stock limits

Policies commonly set more than one limit for stock:

Total stock limit on the premises, sometimes different for inside and outside storage.
Any one vehicle limit, which matters if you buy a high-value car. See high performance motor trade insurance.
Location limits for stock at home, at auctions, with other traders or in transit.

On a road risks policy, theft cover depends on the level you choose. Third party only cover would not normally pay for your own stolen car, while third party, fire and theft or comprehensive cover usually would, subject to limits on where vehicles are kept.

Set limits for your busiest period, not your average. A theft or fire when stock is above the limit can leave the excess uninsured. Telling the insurer about realistic peaks is part of the duty of fair presentation in section 3 of the Insurance Act 2015. If you buy stock for an event or season, ask about a temporary increase in advance.

What theft claims commonly fail on

Keys left in or near the vehicle, or kept in an unlocked drawer, where the policy requires otherwise.
Test drive and deception losses, which many policies exclude or limit unless set procedures were followed, such as checking identity and the driving licence. The DVLA's check driving licence service lets a business view a driver's record with their check code, which must be used within 21 days. See test drives and demonstration cover.
Stock over the limit or stored at an address not on the policy.
Alarm not set or a security device not working.
Late reporting to the police or insurer where the policy sets a time limit.

The Insurance Act 2015 limits some of these defences. Under section 10, a breach of warranty suspends cover until it is remedied rather than ending the policy. Under section 11, an insurer cannot rely on breach of certain risk-reducing terms if the business shows the breach could not have increased the risk of the loss that actually occurred. Illustrative: if an alarm was not set but the car was taken during opening hours using a stolen key, the trader might argue the alarm breach was irrelevant. The outcome depends on the wording and facts, and business policies can contract out of these sections if the insurer meets the Act's transparency rules.

Illustrative scenario: keys taken in a break-in

Illustrative. A small dealer keeps twelve cars on a fenced forecourt. Thieves break into the office overnight, find the key cabinet unlocked and drive away two cars. The policy requires keys to be kept in a locked cabinet out of hours.

The insurer would look at whether the key condition was breached, how the condition is drafted and whether the breach was connected to the loss. Here the unlocked cabinet is directly linked to how the cars were taken, so the trader would have difficulty arguing that section 11 helps. The insurer would also check that the value of the two cars was within the any one vehicle and total stock limits, and that the alarm was set.

A locked cabinet, a key log and a closing checklist would have changed the position. Where a condition is a condition precedent, following it to the letter matters even more.

How Apex helps

Apex arranges motor trade insurance, from road risks for part-time and home-based traders to combined cover for dealers and garages with premises, stock, liability and road risks. A broker reads your enquiry and comes back with options, with no fee for a quote. We need what the business does, the address and where stock is kept, who drives (ages, licences, points), turnover, the values of your own stock and customers' vehicles, and claims history. Cover is subject to the insurer's acceptance and the policy terms. See also used car dealer insurance and combined motor trade insurance.

Sources

Frequently asked

Does motor trade insurance cover keyless theft?

It can, if the policy includes theft of stock and the key and security conditions were met. Some insurers ask for keyless fobs to be stored in signal-blocking pouches or boxes and keys locked away out of hours. Check the wording, because the conditions decide whether a keyless theft claim is paid.

What is a key security condition on a motor trade policy?

It is a term requiring keys to be kept in a particular way, commonly removed from unattended vehicles and locked in a safe or key cabinet out of hours. Depending on how it is drafted it may be a warranty or a condition, and that affects what happens if it is breached.

Am I covered if a customer drives off on a test drive and does not return?

Not always. Many motor trade policies exclude or limit theft by deception, or cover it where set procedures were followed and not otherwise, such as accompanying the driver and checking identity and the driving licence. Check the wording and follow the conditions for every test drive.

Are cars kept at my home covered for theft?

They can be, if the policy covers stock at that address and the limit is high enough. Insurers commonly set separate limits and conditions for stock at home or on the street, and may ask how many cars you keep there and how keys are stored. Undeclared storage locations are a common reason claims fail.

Is it an offence to have relay devices or signal jammers for stealing cars?

The Crime and Policing Act 2026, which received Royal Assent on 29 April 2026, includes new offences covering possession, supply and other dealings in electronic devices for use in vehicle theft. The Home Office factsheet gives a maximum penalty of five years' imprisonment, an unlimited fine or both, once the offences are brought into force by commencement regulations.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.