Do You Need Insurance For Vehicle Collection And Delivery?

​If you make your living collecting and delivering vehicles for others, your business depends on more than just being reliable on the road. If you work in the motor trade industry, having the right insurance for vehicle collection and delivery in place is essential. Without it, a single accident or oversight could leave you liable for costly damages and put your business at risk.

This guide explores the insurance considerations for professional vehicle collection and delivery agents in the UK.

Why Standard Car Insurance Won’t Cover You

A common misconception is that a regular car insurance policy is enough to cover moving vehicles. Standard insurance policies are designed for personal use, typically social, domestic, pleasure and commuting and do not apply when a vehicle is being transported for hire, reward or trade purposes.

That means if a vehicle is damaged during collection or delivery, your personal car insurance won’t cover the claim. You would be left to pay for the repairs or replacement yourself, alongside the potential reputational damage of letting down a customer.

For anyone earning money through the collection or delivery of vehicles, specialist motor trade cover is not optional; it is the only way to obtain the correct insurance to safely move vehicles for collection or delivery.

Specialist Insurance For Vehicle Collection And Delivery

While there isn’t usually a policy labelled specifically as “vehicle collection and delivery insurance,” the motor trade insurance sector offers policies designed with your work in mind.

• Road risk insurance is often the starting point. It provides cover for vehicles while they are being moved on the road for collection, delivery or testing. Policies are usually limited to the drivers named, so you’ll need to make sure everyone driving under your business is included.
• Combined motor trade insurance offers wider protection if you operate from a base or premises. This type of policy can cover not only road risks but also liability, your tools and equipment, and any vehicles kept at your site.

Depending on your operation, additional features such as goods in transit cover or public liability insurance may also be worth considering. These add-ons can help safeguard both your business and your clients’ vehicles against unexpected costs.

Trade Plates And The Law

If you regularly transport unregistered vehicles, trade plates are another legal requirement. These temporary registration plates allow you to drive unregistered vehicles on public roads for trade purposes.

To obtain trade plates, you’ll need to apply for a trade licence and complete the correct DVLA form (VTL301). Failure to use trade plates when required could invalidate your insurance and lead to significant penalties, including fines of up to £5,000 or even prosecution.

Tailoring Insurance To Your Business

No two collection and delivery businesses look exactly the same. Some agents specialise in moving vehicles for private buyers, while others work closely with dealerships, auction houses or online platforms. The risks vary, and so do the insurance requirements.

Fortunately, today’s motor trade policies can be tailored with optional extras to match the realities of your business. Whether you need additional driver cover, protection for vehicles in storage, or liability cover for client handovers, the right broker can help structure a policy that keeps you protected without unnecessary costs.

Protect Your Business And Reputation

Working as a vehicle collection and delivery agent means more than just getting cars from A to B. Your customers trust you with valuable assets, and protecting those assets is part of protecting your livelihood.

Specialist motor trade insurance ensures that if the unexpected happens, you’re not left footing the bill. With the right policy in place, you can focus on what you do best: delivering vehicles safely, on time and with peace of mind.

Whether you need vehicle collection insurance or vehicle delivery insurance, get in touch with our team today to see how we can help you find the perfect insurance for your business needs.