What Is Motor Trade Insurance With Additional Business Use? Why Do I Need It With My Motor Trade Policy?

If you’re in the motor trade industry, you probably already understand the basics of your motor trade insurance policies. It covers you for the essentials: buying, selling, repairing, servicing, or valeting vehicles. But what happens when you’re using your trade vehicle for something outside of those core motor trade activities?

That’s where Additional Business Use comes in. Let’s break it down.

What Is Additional Business Use (ABU)?

Additional Business Use is an extension to your motor trade policy insurance that covers you when you use your insured vehicle(s) for another business purpose outside the motor trade, where you travel to multiple places of work. A standard motor trade policy will cover you to travel to one permanent place of work, but when you start travelling to multiple places of work, ABU is needed.

This doesn’t include personal use like popping to the shop or doing the school run (that’s usually covered under Social, Domestic & Pleasure (SD&P). ABU applies specifically to other types of work, like:

• Running a side business (e.g., landscaping, building, or landlord)
• Working as a subcontractor
• Using your van for any paid work not directly related to motor trading

Why You Might Need ABU

If you’re using your van or car for anything outside buying and selling cars, fixing them, or transporting stock, you may not be covered under a standard motor trade policy insurance. Even occasional use can invalidate your insurance if it isn’t declared.

What Happens If You Don’t Have ABU?

If you’re using a trade-insured vehicle for another business without ABU, you could be driving uninsured.

That means:

• Any claims could be denied
• Your policy could be cancelled
• You may be fined or given penalty points
• Your entire motor trade business could be put at risk

Insurers require full transparency on how your vehicles are used. Any undeclared use, especially if it's commercial, could void your policy entirely.

How Do You Add ABU To Your Policy?

Simple: Talk to your broker. They’ll ask what kind of additional business activities you’re doing. Based on that, they’ll advise whether ABU can be added and what the cost will be.

Usually, it’s a low-cost add-on, and it gives you peace of mind knowing you’re fully covered, no matter how your workday looks.

Final Thoughts

If you’re in the motor trade but also run another business, even just occasionally, and use your vehicle for non-motor-trade work, you need to check if ABU applies to you.

Being properly insured protects:

• Your business
• Your customers
• Your livelihood

Don’t leave it to chance. Review your policy, speak to your broker, and make sure you’re covered for everything you do. For more information on motor trade insurance with additional business use, or if you need any help, please contact us. 

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