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Motor trade insurance
Vehicle import and export trader insurance is motor trade cover arranged around vehicles moving into or out of the UK, from arrival at port to registration or shipment. It matters because the paperwork, the vehicle's legal status and the right insurance all change at each stage.
Part of: Motor trade insurance
In short
An imported vehicle cannot be registered with DVLA until HMRC has been told it has arrived, which must happen within 14 days, and it usually needs vehicle approval first. GOV.UK says you can be prosecuted for using it on a public road before these steps are complete, unless you are driving to a pre-booked MOT or approval test, and it must still be insured. Exporters complete the permanent export section of the V5C. Road risks cover driving; vehicles carried by ship or lorry usually need transit or cargo cover, so check where one policy ends and the next begins.
A trader buying and selling within the UK mostly deals with registered vehicles. Importers and exporters also handle vehicles that are in transit, waiting for customs clearance, unregistered or on foreign registration. Each stage raises a different question: who owns the vehicle, where it is, whether it can lawfully be driven, and which policy responds if it is damaged or stolen. Once a vehicle is registered and on your forecourt, the points in our used car dealer insurance guide apply.
For a general view of import and export risks beyond vehicles, see our importer and exporter insurance guide.
GOV.UK's import guidance sets out the main steps for a permanent import:
INF106 also describes a secure registration scheme (V55/2) for manufacturers, import concessionaires and independent import traders, and says a DVLA trade plate holder can use form V959 instead of identity documents.
GOV.UK says you can be prosecuted for using an imported vehicle on a public road before completing the import steps, unless you are driving it to a pre-booked MOT or vehicle approval test. DVLA's INF106 advises transporting the vehicle rather than driving it from the port, and keeping it off the road until it is registered, taxed and insured.
Even on the permitted journey to a test, the vehicle needs insurance under section 143 of the Road Traffic Act 1988 (see compulsory motor insurance). Motor trade road risks policies are commonly written by reference to vehicles in your custody or control for the purposes of the trade, but some insurers restrict cover for unregistered or foreign-registered vehicles. Ask before you drive one. Trade plates have their own rules, covered in trade plates rules and insurance.
For a vehicle leaving the UK for 12 months or more, GOV.UK says the keeper fills in the permanent export section of the V5C, sends it to DVLA, and keeps the rest of the log book for registration in the destination country. GOV.UK says motor traders should do the same.
If you sell a vehicle for export in a condition that would be unlawful or dangerous on a road, section 75 of the Road Traffic Act 1988 provides a defence to the offence of supplying an unroadworthy vehicle where it is supplied for export from Great Britain. Keep evidence that the sale was for export.
The table is a general guide. Which policy responds depends on the wording and the contract terms with the seller, buyer and carrier.
| Stage | Cover commonly used | Points to check |
|---|---|---|
| At sea or on a lorry | Marine cargo or goods in transit cover | When risk passes under the sale terms; carrier's own liability limits |
| At port or a storage yard | Stock cover extended to other locations, or transit cover | Whether the policy covers vehicles away from your premises |
| Driven to a test or your premises | Road risks | Unregistered or foreign-registered vehicle restrictions |
| Held at your premises | Combined policy stock section | Stock limit and highest single vehicle value |
| Driven outside the UK | Road risks territorial limits | Many policies limit or exclude use abroad |
See cargo insurance and combined motor trade insurance explained for more on the stock and transit sides.
These are illustrative examples, not real cases. Outcomes depend on the policy wording and the facts.
A trader buys a car abroad and arranges a transporter to bring it to the UK. It arrives with body damage. The trader's road risks policy is unlikely to respond because nobody was driving it. Whether the loss is recoverable depends on the transit or cargo cover in place, the carrier's liability terms and when risk passed under the purchase contract.
A trader collects an imported car and drives it from the port to their unit before registration, with no pre-booked test. Beyond the risk of prosecution, the trader's insurer may treat the journey as outside the policy if it restricts cover for unregistered vehicles. A transporter avoids both problems.
Apex arranges motor trade insurance, from road risks to combined policies covering premises, stock, liability and road risks. 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. We need what the business does, including import and export volumes, the address and premises, who drives (ages, licences, points), turnover, vehicle values for own stock and customers' vehicles, and claims history. Start at motor trade insurance, or read about high-performance motor trade cover if you import specialist cars.
GOV.UK says you can be prosecuted for using it on a public road before completing the import steps, unless you are driving it to a pre-booked MOT or vehicle approval test. It must still be insured for that journey, and some motor trade policies restrict cover for unregistered vehicles.
14 days. VAT-registered businesses use the NOVA service. GOV.UK says the vehicle cannot be registered with DVLA until HMRC has processed the notification, and you may be fined for notifying late.
Not usually. Road risks covers driving, and a combined policy's stock section usually covers vehicles at your premises or named locations. Vehicles at sea or on a transporter normally need marine cargo or goods in transit cover, so check where each policy starts and stops.
DVLA's INF106 guide says used vehicles are registered on form V55/5 and new vehicles on form V55/4, with supporting evidence such as vehicle approval and the original foreign registration document. The guide gives the first registration fee as £55.
GOV.UK says to fill in the permanent export section, send it to DVLA, and keep the rest of the log book, which is needed to register the vehicle in the destination country. Motor traders follow the same process.
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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