Can you get Motor Trade Insurance without business premises?

By Road Runner

A mechanic in a blue uniform installs a tire on the front wheel of a partially disassembled car in a workshop.

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Motor Trade Insurance is a specialist policy designed for anyone working with vehicles – for example repairing, buying, selling, or valeting. But what if you don’t have a garage or forecourt?

Many traders ask, “Can I get Motor Trade Insurance without premises?” The good news is yes – you can. Whether you’re a mobile mechanic or working from home, home-based Motor Trader Insurance offers flexible cover tailored to your set-up. This guide explains how it works and what insurers look for.

Do you need business premises in the motor trade industry?

No, having fixed business premises isn’t always necessary in the motor trade. Many professionals operate successfully without one, depending on their business model.

Home-based traders often manage admin, bookings, and parts storage from their residence, ideal for online sales or small-scale repairs. Mobile mechanics bring their tools and expertise directly to customers, offering convenience and flexibility without the overhead of a workshop.

The key is choosing a set-up that suits your services, customer base, and budget.

Mechanic in a garage holding a car tire, with a black car in the background and shelves of tires behind him.

What insurers look for instead of premises

When applying for Motor Trade Insurance, insurers often look for evidence that you’re actively trading – even if you don’t have formal business premises. This could include:

Proof of trading, such as invoices, receipts, or records of stock purchases
Checking for business registration, whether as a sole trader or limited company
Trade plate usage can demonstrate regular vehicle movement
Secure vehicle storage (like locked garages or monitored compounds) helps show you’re managing risk responsibly

These factors help insurers assess your legitimacy and tailor your cover appropriately.

A car being loaded onto a tow truck with a ramp by the roadside.

What type of cover can you get without premises?

Motor Trade Insurance can be tailored to suit the way you work.

Road Risk Only cover is ideal for home-based or mobile traders, allowing you to drive customer vehicles legally without needing business premises.

For those operating from a workshop or forecourt, a Combined Policy offers broader protection, covering buildings, tools, and equipment.

You can also add optional extras like cover for tools, liability insurance, and stock protection – helping you safeguard every aspect of your business. The right policy depends on your set-up, so it’s worth reviewing your needs carefully.

Common mistakes to avoid

When setting up in the motor trade, avoiding a few key mistakes can save you time, money, and legal trouble.

One major error is not disclosing your trading location – insurers need to know where vehicles are kept and work is carried out, even if it’s your home.

Another is using private insurance for trade vehicles, which won’t cover you for business use and could invalidate your policy.

Lastly, failing to keep proper records (like invoices, stock logs, and customer details) can make it harder to prove you’re trading and may affect your insurance or tax obligations.

Final thoughts

Motor Trade Insurance is designed to be flexible, whether you’re working from home, on the move, or just starting out. There’s no one-size-fits-all policy – cover can be tailored to suit your set-up, trading style, and budget.

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Get help from Road Runner

If you’re unsure what you need, it’s always best to get a quote or speak to a specialist who understands the motor trade inside out. Need cover without premises? Explore your options with our motor trade insurance experts and find the right protection for your business.

You can get a quote here or call us on 03301 00 87 20.

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Specialists in Motor Trade Insurance

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Road Runner is a trading name of Howden UK Brokers Limited, which is authorised and regulated by the Financial Conduct Authority No. 307663. Registered in England and Wales under company registration number 02831010. Registered Office: One Creechurch Place, London, EC3A 5AF. Calls may be monitored and recorded for quality assurance purposes.