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Motor trade insurance
A motor trade insurance claim asks the insurer to pay for a loss covered by your road risks or combined policy, such as an accident, theft or fire. How quickly and fully it is paid depends on the policy terms, the evidence and what you told the insurer when the policy started.
Part of: Motor trade insurance
In short
After an incident, meet your legal duties, notify the insurer promptly and keep evidence. Road risks claims work much like other motor claims, with an excess and possible effect on your no claims position; combined policy claims for premises, stock or customers' vehicles are often handled by a loss adjuster. Disputes commonly turn on who was driving, key and security conditions, stock limits and what was disclosed. The Insurance Act 2015 sets proportionate remedies and a duty to pay within a reasonable time, and eligible small businesses can take an unresolved complaint to the Financial Ombudsman Service.
If a vehicle you are driving is involved in an accident on a road or other public place causing injury or certain damage, section 170 of the Road Traffic Act 1988 requires the driver to stop and, if asked, give their name and address, the owner's details and the vehicle's registration. If those details are not given at the scene, the accident must be reported to the police as soon as reasonably practicable and in any case within 24 hours.
Then notify your insurer or broker as soon as you can. Most policies have a claims notification condition, and late notice can affect a claim. Useful evidence includes:
A road risks claim usually has two parts: liability to other people, and damage to the vehicle you were driving. Third party claims are compulsory cover under the Road Traffic Act. Damage to your own or a customer's vehicle depends on the level of cover: third party only does not usually pay for it, third party fire and theft adds those perils, and comprehensive adds accidental damage.
The insurer will usually ask for the policy excess, which may be higher for younger drivers, test drives or theft. If someone else was at fault, the insurer may pursue them to recover what it paid, a process known as subrogation. If the other driver was uninsured or could not be traced, the Motor Insurers' Bureau handles claims involving uninsured and untraced drivers. See Motor Insurers' Bureau for more.
A claim may affect your no claims position and future premiums. Our guide on how claims affect your renewal explains this.
A combined motor trade policy can respond to losses away from the road: fire at the unit, theft of stock, damage to customers' vehicles in your care, injury claims from visitors or staff, and lost income after damage. Larger claims are often handled by a loss adjuster appointed by the insurer, who will visit, ask for records and report on cause and value.
For stock and premises claims, expect questions about stock values on the day, the security in place and how keys were stored. For customers' vehicles, expect questions about where the vehicle was kept and who moved it. Our page on customer vehicles in your care covers that cover in more depth.
The table shows common pressure points. Each turns on the policy wording and the facts.
| Issue | What usually happens |
|---|---|
| Driver not covered | Damage to the vehicle may be declined. Third party claims may still be paid, with the insurer seeking recovery. |
| Keys left in or on a vehicle | Theft claims may be declined if a key condition applies and was not met. |
| Stock above the limit | The insurer may pay up to the limit or apply underinsurance terms. |
| Use outside the policy | Private hire, lending a car or non-trade use may fall outside cover. |
| Something not disclosed | The insurer's remedy depends on what it would have done if told (see below). |
| Test drive by deception | Loss of a vehicle taken by a fake buyer is commonly excluded or limited. |
If a claim is turned down, our guide to a rejected business insurance claim sets out next steps.
The Insurance Act 2015 sets the main rules for business insurance contracts and has been in force since 12 August 2016. The main points for a claim:
The FCA's ICOBS 8.1.1R also requires insurers to handle claims promptly and fairly and not unreasonably reject a claim.
If you disagree with a decision, complain to the insurer first. The Financial Ombudsman Service says a business has 8 weeks for most complaints, and you then have 6 months from the date of the final response to refer it.
Not every business can use the Ombudsman. Eligible businesses include micro-enterprises (fewer than 10 employees and turnover or balance sheet not over €2 million) and small businesses (turnover under £6.5 million, and either a balance sheet under £5 million or fewer than 50 employees). The award limit is £455,000 for complaints referred on or after 1 April 2026 about acts or omissions on or after 1 April 2019. See Financial Ombudsman Service.
Apex arranges motor trade insurance including road risks and combined policies. A broker reads the enquiry and comes back with options, and there is no fee for a quote. Cover is subject to the insurer's acceptance and the policy terms. A careful presentation at the start is what makes a claim straightforward later, so we ask what the business does, the address and premises, who drives (ages, licences, points), turnover, vehicle values for own stock and customers' vehicles, and claims history. See motor trade insurance.
There is no fixed number of days. Section 13A of the Insurance Act 2015 implies a term that the insurer must pay sums due within a reasonable time, including a reasonable time to investigate. What is reasonable depends on the type of insurance, the size and complexity of the claim, and other circumstances.
It depends. Under the Insurance Act 2015, if the failure was neither deliberate nor reckless, the insurer's remedy matches what it would have done if told. That might mean different terms or a proportionately reduced claim rather than outright refusal. Deliberate or reckless failures allow the insurer to avoid the policy.
If you have comprehensive cover, your own insurer may pay for the damage and then try to recover from the other driver. Where the other driver is uninsured or untraced, the Motor Insurers' Bureau handles claims, subject to its own agreements and conditions.
Often, yes. The Ombudsman can help micro-enterprises and small businesses that meet its size tests, including turnover under £6.5 million. You normally complain to the insurer first, then have 6 months from its final response to refer the complaint.
Usually it is taken into account. Insurers ask about claims history, and a claim may affect your no claims position, the premium or the terms offered. Explaining what happened and what has changed since often helps at renewal.
Tell us what your business does, who drives, your premises and vehicle values. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a motor trade enquiry Request a callbackApex 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.
