Mid-market insurance

HGV and commercial vehicle dealer insurance

Reviewed by the Apex broking team · Last reviewed 2026-11-04

HGV and commercial vehicle dealer insurance is a motor trade programme for businesses that sell, repair or test trucks, vans, trailers and buses. It matters because individual vehicles are costly, customer downtime is expensive and road movements are frequent.

Part of: Motor trade insurance

In short

Truck and van dealers and repairers usually need cover for high value stock on site, road risks for heavy vehicles driven under trade plates or on the dealer's own registration, workshops and testing equipment, customer vehicles in their custody, and liability to staff and the public. Operator licensing and trade plate rules affect how vehicles can be moved and what insurers ask. The main gaps tend to be road risks wordings that exclude vehicles over a weight limit, customer vehicle limits that are too low for modern trucks, and loads carried during deliveries or demonstrations.

What a commercial vehicle dealer needs to cover

The plain answer is the same structure as any motor trader, scaled up: stock, road risks, premises, workshop, liability and loss of profit. The difference is weight and value. Many standard motor trade insurance wordings limit road risks to vehicles under a stated gross weight, so a policy that works for a van centre may not cover a tractor unit being delivered.

Dealers and repairers also hold far more customer property. A single articulated vehicle and trailer in the workshop can exceed the value of a small car dealer's whole stock, and the customer usually loses revenue while it is off the road.

Trade plates, operator licences and testing: the rules

Topic	What the official guidance says	Why it matters for insurance
Trade plates	Use only on insured, roadworthy vehicles with an MOT or exemption, and only for the purpose stated on the application (GOV.UK)	Road risks must cover each plated use; see trade plates rules and insurance
Loads on plated vehicles	DVLA guidance says plates must not be displayed on vehicles used for the general conveyance of goods, with exceptions for specified loads in the regulations (VTL301G)	Carrying goods may fall outside both the plate rules and the policy
Operator licence	Usually needed for a goods vehicle over 3.5 tonnes gross plated weight used for hire or reward or in connection with a trade or business (operator licensing guide)	Affects how the dealer's own transporters and recovery units are run and insured
Trade plate exemption	GOV.UK lists vehicles used on trade plates among the operator licence exemptions (exemptions)	Plated movements are treated differently from the dealer's own operated vehicles
Heavy vehicle testing	An authorised testing facility needs DVSA approval to test HGVs, trailers, buses and coaches; DVSA provides assessors to carry out the tests and the site must have an insurance policy with a suitable excess (ATF guidance)	Premises, equipment and liability cover need to reflect the testing lane

For the licensing side in more depth, see operator licence and haulage insurance. Light vehicle testing is covered in MOT testing station insurance.

Road risks, demonstrations and delivery drivers

Road risks for a commercial vehicle dealer usually need to cover technicians road testing customer vehicles, sales staff on demonstrations, delivery drivers taking vehicles to customers and drivers collecting part exchanges. Check:

the maximum gross vehicle weight and vehicle types covered, including buses, coaches and specialist bodies;
driver licence categories, ages and any approval process for new drivers;
whether customers may drive unaccompanied on extended demonstrations, and who insures the vehicle while it is with them; see test drives and demonstration cover;
whether trailers, loads and ballast used on demonstrations are covered.

The road risks gap scenario shows how a mismatch between actual use and the policy can leave a dealer exposed. Where the dealer runs its own vans or trucks for parts, recovery or transport, those may be better placed on a fleet policy; see HGV fleet insurance and fleet insurance.

Customer vehicles in custody and workshop risks

Damage to customer vehicles in your care is usually covered under the internal risks section while on premises and under road risks while being driven. Limits per vehicle and per event should reflect the most valuable truck, trailer or bus you could hold, not the average. Customers commonly claim for loss of use too, which many policies do not cover unless an extension is bought.

Workshops carry fire, lifting and pit risks. HSE's motor vehicle repair guidance (HSG261) covers vehicle lifts and their periodic thorough examination, inspection pits and fire and explosion. Insurers often ask for inspection reports, hot work controls and electrical testing records. A repairer's wider exposures are covered in garage and vehicle repair insurance, and recovery work in vehicle recovery insurance.

What underwriters look at for a commercial vehicle dealer

A submission for a truck and van dealership or repairer is usually judged on how well it explains the operation. Underwriters commonly ask about:

Vehicle mix. Vans, rigid trucks, tractor units, trailers, buses and specialist bodies, with the heaviest and most valuable of each.
Movements. How many deliveries and collections are made each month, by whom, and whether vehicles travel abroad.
Driver controls. Licence checks, minimum experience for heavy vehicle drivers, and whether agency or self employed drivers are used.
Workshop. Number of bays, lifts and pits, paint and body work, hot work controls and maintenance records.
Site security. Overnight storage of customer and stock vehicles, key control and fuel theft prevention.

Clear answers on these points help the underwriter choose the right wording and reduce the risk of exclusions being added at short notice. Motor trade insurance cost factors covers the same ground in general terms.

Illustrative examples

These examples are illustrative only and do not describe any real business or claim.

Over the weight limit. A delivery driver takes a 44 tonne tractor unit to a customer on trade plates and is involved in a collision. If the road risks section is limited to lighter vehicles, the dealer may face a gap.
Workshop fire. A fire in the paint bay damages four customer trucks and stops the site for months. Internal risks, property and business interruption all come into play, and customers may claim for loss of use.
Load on demonstration. A prospective buyer asks to see a tipper loaded. Whether the load and any third party damage are covered depends on the road risks wording and the plate rules.

Common mistakes and what to check with your broker

Road risks weight or vehicle type limits that do not match stock.
Customer vehicle limits based on vans when the workshop now handles heavy vehicles.
Assuming plated movements and the dealer's own operated vehicles are insured the same way.
Business interruption indemnity periods that ignore long lead times for specialist workshop equipment; see business interruption insurance.

Bring a list of vehicle types, peak stock, highest value customer vehicle, every driver group and any testing lane to the review. Car franchise sites on the same group may sit with franchised car dealership insurance.

Apex arranges motor trade cover for commercial vehicle dealers and repairers; a broker reads every enquiry.

Sources

Frequently asked

Can a motor trade policy cover HGVs?

Yes, but not every motor trade policy does. Many standard wordings limit road risks to vehicles below a stated gross weight or exclude buses and specialist vehicles. A commercial vehicle dealer needs a wording that names the vehicle types and weights it handles, the drivers who move them and the purposes for which they are driven.

Do we need an operator licence to deliver trucks on trade plates?

GOV.UK lists vehicles being used on trade plates among the exemptions from goods vehicle operator licensing. That does not cover the dealer's own transporters or recovery vehicles carrying goods, which may need a licence if over 3.5 tonnes. Check your specific operation against the official guidance or take advice.

Are customer trucks covered for loss of use while in our workshop?

Often not as standard. Customer vehicle cover usually pays for physical damage, while a customer's lost earnings during repairs may only be covered by an extension or under your liability cover if you were negligent. Check your terms of business and ask your broker whether a loss of use extension is available.

Does running an HGV testing lane change our insurance?

Usually yes. A testing lane adds equipment, more vehicles on site and visiting DVSA staff. DVSA guidance says an authorised testing facility site must have an insurance policy with a suitable excess, so tell your broker before you open a lane and check that property, liability and equipment cover reflect it.

Should our own parts vans be on the motor trade policy or a fleet policy?

Either can work. Some motor trade policies cover the dealer's own vehicles alongside road risks, while larger operations often move them onto a separate fleet policy with its own claims history and terms. The right answer depends on the number of vehicles, their use and how claims are handled. Ask your broker to compare both structures at renewal.

Mid-sized business? Have your programme reviewed

Send us your current schedules or renewal pack and we will review the whole programme and tell you plainly what to keep and what to change. No fee and no obligation. Or call 0117 325 0027.

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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.