What is the difference between Motor Trade insurance and Fleet insurance?

July 10, 2024

It can get confusing when you have to pick one type of insurance over another. If you’re running a business, the whole question of insurance can become something of an administrative nightmare – you want to protect the business as far as you can yet draw the line at buying insurance you might not need.

When it comes to understanding the difference between motor trade insurance and fleet insurance, though, it is apparent that many businesses need more than one type of insurance to protect their trading operations. Let’s explain why.

What is Motor Trade insurance?

Just as the name suggests, motor trade insurance is something of an umbrella term covering a package of protections likely to be helpful for anyone trading in motor vehicles.

Those businesses can include the buying and selling of vehicles – either from specific business premises or even from your home address. It can also provide the safeguards you need if you service or repair motor vehicles for your customers or run a breakdown service that rescues your customers from the side of the road.

Motor trade insurance can also cover the many and varied risks you face if you simply fit new or retread tyres.

We’re proud to have built our business around providing the many shapes and types of motor trade insurance that has for many years protected the businesses of all kinds of motor trader.

What is Fleet insurance?

Fleet insurance, on the other hand, is a type of insurance you might need even if your business has nothing at all to do with the motor trades. Fleet insurance can be helpful to any business that needs to insure two or more vehicles under the same motor insurance policy.

Fleet insurance is appropriate for any business that relies on more than one or two vehicles.

Under a single umbrella insurance policy, your business can rest assured that all of the vehicles on which it relies remain legally insured – with a single renewal date ensuring that no one vehicle is overlooked.

Whether you are running cars, vans, trucks, or lorries, all of these can typically be covered under a single insurance policy that grants any number of your designated employees the right to drive some or all of those vehicles.

Difference between Motor Trade insurance and Fleet insurance – in a nutshell

Motor trade insurance and fleet insurance address different risks and perils your business may face.

If you are engaged in any sector of the motor trades, for instance, the broad coverage of specifically tailored motor trades insurance is likely to be a safeguard your business will not want to do without.

If your business is totally unrelated to buying and selling, repairing, or servicing motor vehicles, however, you might nevertheless rely on a range of vehicles for different aspects of your operations – whether that includes a small or larger collection of cars, vans, and lorries.

If you want to ensure that all those vehicles remain insured – as the law demands – with a single annual renewal date and the likely additional bonus of a reduced premium for including multiple vehicles under the same policy, then fleet insurance is almost certain to be your choice.