Motor trade insurance

Motor trade insurance without premises

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

You can get motor trade insurance without premises, usually as a road risks only policy that covers driving vehicles connected with your trade. It matters because where you keep vehicles, and how, shapes both the cover available and the rules you have to follow.

Part of: Motor trade insurance

In short

Traders without a unit usually buy road risks only cover, which insures named drivers to use vehicles connected with the trade on the road. It does not usually cover vehicles at rest, tools or liability for faulty work. Storing stock on the street brings legal risks: in England and Wales, leaving two or more vehicles for sale within 500 metres of each other on a road is an offence. Insurers ask where vehicles are kept overnight, their values and the security in place. Cover is subject to the insurer's acceptance and the policy terms.

Who trades without premises

Plenty of motor trade businesses never lease a unit. Common examples include home-based dealers buying and selling a few cars at a time, mobile mechanics who work at customers' homes, mobile valeters and detailers, trade delivery and collection drivers, and traders who rent space in someone else's yard. The motor trader definitions in section 62 of the Vehicle Excise and Registration Act 1994 turn on what you do, not whether you have premises, so a trader without a unit is still a motor trader. Our part-time motor trade guide covers people who trade alongside another job.

What cover looks like without a unit

The core is usually a road risks only policy: third party only, third party fire and theft, or comprehensive. It insures named or described drivers to use vehicles in connection with the trade, commonly including your stock and customers' vehicles while being driven for trade purposes.

Need	Usual position on road risks only
Driving stock and customers' cars	Covered at the level you choose, subject to the policy terms
Vehicles parked at home or on the road	Often excluded or limited; some policies add cover for a set number of vehicles at a declared address
Tools and diagnostic equipment	Not covered unless added
Injury or damage not caused by driving	Needs public liability added
Faults in your work	Needs products or workmanship cover added

If you take on a unit later, a combined motor trade policy is the usual next step.

Insurers commonly set a maximum value for any one vehicle and a limit on how many vehicles you hold at once. If you collect and deliver customers' cars, check the level of cover for them as well as for your own stock: a third party only policy will not pay for damage to the customer's car you are driving. Our guide to customer vehicles in your care and the short road risks definition explain the difference.

Storing stock at home or on the street

Where vehicles sit overnight is the question insurers care about most when there is no premises, and the law has a view too.

Selling from the road. In England and Wales, section 3 of the Clean Neighbourhoods and Environment Act 2005 makes it an offence to leave two or more motor vehicles parked within 500 metres of each other on a road where they are exposed or advertised for sale. The only defence is proving you were not acting for a business of selling motor vehicles. The maximum fine is level 4 on the standard scale.
Repairing on the road. Section 4 makes repairs, servicing or dismantling on a road in the course of a business an offence, with limited defences such as repairs following an accident or breakdown carried out within 72 hours.
MOT. GOV.UK says you cannot drive or park a vehicle on the road if the MOT has run out, except to have it fixed or to a pre-arranged test.
Insurance on parked stock. GOV.UK's uninsured vehicles guidance says vehicles registered in trade, or between keepers, are excluded from continuous insurance enforcement. That is not the same as being insured: a parked stock car damaged or stolen on the street is only covered if your policy says so.

A locked garage or a gated private driveway is usually viewed more favourably than the road. Many policies carry key security conditions, such as keeping keys out of sight and not leaving them in vehicles. Our guide to stock theft and key security explains why claims fail on these.

Using someone else's premises

Some traders store vehicles at a friend's garage, a rented bay in a shared yard, or with a bodyshop or valeter while work is done. Do not assume the yard owner's insurance covers your vehicles. Their customer vehicles cover, if any, may only apply to vehicles in for work under their own contract, and some exclude vehicles stored for others. Ask for the position in writing and tell your own insurer where vehicles are kept. A trade licence does not change this; trade plates only allow permitted journeys on the road; they say nothing about storage and do not insure anything.

What insurers ask

What the business does: sales, repairs, valeting, delivery or a mix.
Your home address and where each vehicle is kept overnight.
How many vehicles you hold at one time and the highest value of any one vehicle.
Security: garage, gates, lighting, trackers, key storage.
Who drives, with ages, licences, points and convictions.
Turnover and evidence of trading.
Claims history.

Section 3 of the Insurance Act 2015 requires a fair presentation of the risk before cover starts. Saying stock is garaged when it sits on the road is the kind of misstatement that causes problems at claim stage.

Illustrative example

A home-based trader keeps three stock cars on the street outside his house because his driveway holds only one. One is stolen overnight. His road risks policy includes fire and theft, but only for vehicles on the road in use or at the declared private address. The insurer may decline because the car was parked on the street. Declaring where vehicles really sit, and buying cover to match, avoids the dispute.

How Apex helps

Apex arranges road risks cover, including for part-time and home-based traders, and combined policies when you move into premises. A broker reads your 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. To quote, we need to know what the business does, your address and any premises, who drives (ages, licences and points), turnover, vehicle values (your own stock and customers' vehicles) and claims history. Start on our motor trade insurance page.

Sources

Frequently asked

Can I get motor trade insurance without a business premises?

Yes, usually as a road risks only policy that insures you to drive vehicles connected with your trade. Insurers will ask where vehicles are kept, how many you hold and their values, and who drives. Cover for vehicles parked at home is often limited. Any cover is subject to the insurer's acceptance and the policy terms.

Can I keep stock cars on the road outside my house?

There are legal and insurance risks. In England and Wales it is an offence to leave two or more vehicles for sale within 500 metres of each other on a road as a business, and a vehicle without a current MOT cannot be parked on the road. Many policies also limit theft or damage cover for vehicles left on the street.

Does road risks only cover cars parked at my house?

Not always. Road risks only is built around driving. Some policies cover a limited number of vehicles at a declared home address, often with security and key conditions, while others exclude vehicles at rest altogether. Check the wording and declare where vehicles are kept overnight.

Can I repair customers' cars on the street?

In England and Wales, section 4 of the Clean Neighbourhoods and Environment Act 2005 makes business repairs on a road an offence, with limited defences such as repairs after an accident or breakdown within 72 hours. Mobile mechanics usually work on the customer's driveway or private land for this reason.

Do I need public liability if I trade from home?

It is not compulsory by law, but road risks only does not cover injury or damage that is not caused by driving, such as a customer tripping over tools or damage to a customer's driveway. Many home-based traders add public liability for that reason, subject to the insurer's terms.

Get a motor trade insurance quote

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.

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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.