Motor Trade Insurance NZ

Comprehensive insurance coverage designed specifically for car dealers, mechanics, auto parts suppliers, and other motor trade businesses in New Zealand

What is Motor Trade Insurance?

Motor trade insurance is specialized coverage designed for businesses that work with vehicles as their core business activity. Unlike standard business car insurance, motor trade policies cover unique risks faced by automotive businesses including:

  • ✓ Driving customers' vehicles (road risk insurance)
  • ✓ Vehicles for sale on your premises
  • ✓ Workshop liability and tool coverage
  • ✓ Parts and stock protection
  • ✓ Public liability for automotive activities
  • ✓ Professional indemnity for advice and services

Why Standard Car Insurance Isn't Enough

Regular business car insurance typically excludes coverage for driving customer vehicles, demonstration drives, or vehicles being repaired. Motor trade insurance fills these critical gaps.

Motor trade workshop with tools and keys

Who Needs Motor Trade Insurance?

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Car Dealers

  • Used car lots
  • New car dealerships
  • Vehicle importers
  • Car auctioneers
Covers stock vehicles, test drives, and customer vehicles
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Automotive Workshops

  • Mechanical repairs
  • Panel beaters
  • Auto electricians
  • Tyre shops
Covers customer vehicles, tools, and workshop liability
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Parts & Accessories

  • Auto parts suppliers
  • Accessory installers
  • Performance shops
  • Wrecker yards
Covers stock, installation work, and customer vehicles
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Specialist Services

  • Vehicle valuation
  • Car detailing
  • Vehicle transport
  • Automotive consultants
Covers professional services and customer property

Motor Trade Insurance Coverage Options

Road Risk Insurance

Essential coverage for driving any vehicle in connection with your motor trade business.

What's Covered:

  • Customer vehicles being test driven, collected, or delivered
  • Vehicles being moved around your premises
  • Demonstration drives with potential buyers
  • Taking vehicles to/from other workshops or suppliers
  • MOT or WOF runs
  • Any driver with your permission

Typical Coverage Limits:

  • Vehicle Damage: Up to $150,000 per vehicle
  • Third Party Property: Unlimited
  • Theft/Fire: Full vehicle value
Person test driving a vehicle

Premises Coverage

Protection for your business premises, stock vehicles, and property.

What's Covered:

  • Vehicles for sale or repair on your premises
  • Building and contents insurance
  • Stock vehicles - fire, theft, storm damage
  • Customer vehicles on your premises
  • Business interruption following covered loss
  • Seasonal variations in stock levels

Coverage Features:

  • Stock Valuation: Trade or retail values
  • Automatic Additions: New stock covered immediately
  • Temporary Locations: Shows, auctions, other sites
Car dealership lot with vehicles

Liability Protection

Comprehensive liability coverage for all aspects of your motor trade business.

Public Liability Covers:

  • Injury to customers or third parties on your premises
  • Damage to customer property during repairs
  • Products liability for parts or accessories sold
  • Pollution liability from workshop activities
  • Legal defense costs

Professional Indemnity Covers:

  • Errors in vehicle valuations or advice
  • Faulty workmanship claims
  • Breach of professional duty
  • Loss of documents or data

Standard Limits:

  • Public Liability: $1-10 million
  • Professional Indemnity: $1-5 million
  • Products Liability: $2-20 million
Mechanic working on vehicle engine

Tools & Stock Coverage

Protection for your business tools, equipment, and parts inventory.

Tools & Equipment:

  • Hand tools and power tools
  • Diagnostic equipment and computers
  • Lifting equipment and hoists
  • Portable equipment used off-premises
  • Theft from vehicles or job sites

Parts & Stock:

  • New and used auto parts inventory
  • Accessories and aftermarket parts
  • Oils, lubricants, and consumables
  • Deterioration due to refrigeration breakdown
  • Stock at multiple locations

Coverage Limits:

  • Tools: Up to $100,000 total
  • Single Item: Up to $10,000
  • Stock: Based on your inventory value
Automotive tools and equipment

Motor Trade Insurance Costs

Motor trade insurance premiums depend on several factors unique to automotive businesses:

Business Factors

  • Business Type: Dealers typically pay more than repair shops
  • Annual Turnover: Higher turnover = higher premiums
  • Years in Business: Established businesses get better rates
  • Location: Urban areas typically cost more

Coverage Factors

  • Vehicle Values: Higher value stock = higher premiums
  • Coverage Limits: Higher limits cost more
  • Excess Levels: Higher excess reduces premium
  • Add-on Covers: Each additional cover adds cost

Typical Annual Premiums

Small Workshop

$2,500 - $5,000
  • 1-2 staff
  • Basic road risk
  • $1M public liability
  • Tools up to $20K

Used Car Dealer

$5,000 - $12,000
  • 10-50 stock vehicles
  • Full road risk cover
  • $2M liability
  • Stock up to $500K

Large Dealership

$12,000 - $30,000+
  • 100+ stock vehicles
  • Comprehensive coverage
  • $10M liability
  • Multiple locations

Why Choose Motor Trade Insurance?

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Complete Protection

One policy covers all your motor trade risks - vehicles, premises, liability, and tools.

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Specialist Expertise

Insurers who understand automotive businesses and their unique risks and requirements.

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Cost Effective

Often cheaper than buying multiple separate policies for the same coverage.

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Simple Management

One policy, one renewal, one claims contact. Simplifies your insurance administration.

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Any Vehicle Coverage

Drive any vehicle in connection with your business - no need to schedule specific vehicles.

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Business Continuity

Business interruption coverage helps keep your business running after a covered loss.

Important Exclusions to Know

While motor trade insurance is comprehensive, there are some common exclusions:

❌ Racing & Motorsport

Competitive motorsport activities, racing, or speed trials are typically excluded.

❌ Personal Use

Using business vehicles for personal, non-business related activities.

❌ Mechanical Breakdown

Normal wear and tear, mechanical or electrical breakdown not caused by an accident.

❌ Unlicensed Drivers

Damage caused by drivers without appropriate licenses or under influence.

Note: Exclusions vary between insurers. Always review the policy wording carefully and discuss specific needs with your broker.

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