Motor Trade in 2026: A Business Changing Gear,
By Gary, Motor Portfolio Manager.
The motor trade has always moved quickly. Today, new vehicle technology, changing customer habits and rising operating costs are increasing the pace of change.
Whether a business is an independent garage, dealership, repair centre or specialist vehicle trader, the way it works may look very different from only a few years ago.
Electric and hybrid vehicles are becoming more common, while cameras, sensors and connected technology are now standard on many models.
These changes bring opportunities, but they also affect how vehicles are repaired, stored, and moved. For brokers, this makes a good conversation more important than ever. The key question is simple: does the insurance still match the way the business operates today?
Start by understanding the business
One of the biggest risks is the gap between what a business used to do and what it does now. Motor traders should have a clear view of the vehicles they handle, the services they provide and the technology they use. They should also know whether their staff, premises and equipment are suitable for that work.
A garage may now service more electric vehicles.
A dealer may hold more valuable stock for longer. A repairer may offer collection and delivery or use new diagnostic equipment. Each change can alter the risks the business faces. That is why a renewal discussion should go beyond checking last year’s details. Brokers need to ask what has changed, what vehicles are on site, how they are protected and what could stop the business from trading.
New technology is changing the workshop
Electric and hybrid vehicles bring different safety and repair needs. Modern vehicles also rely on cameras and sensors for features such as parking assistance, automatic braking, and lane support. Even a straightforward repair may now need specialist knowledge, equipment, or a final system check. Motor traders should be honest about the work they can safely carry out and know when to use a specialist. Staff who inspect, service, repair or recover these vehicles need training that matches their role.
Businesses should also think about battery damage, charging points, damaged-vehicle storage and emergency arrangements.
The aim is not to make every workshop highly technical, but to make sure the right people, tools and procedures are in place. For brokers, the message is equally simple: you do not need to be an engineer, but you should recognise when a customer’s work has changed and make sure the insurance conversation changes with it.
Protecting valuable vehicle stock
For vehicle sellers, stock may be one of the largest business assets. Its value and mix can change quickly, so sums insured and storage arrangements should be reviewed regularly. A dealer may hold more vehicles, move into higher-value models, or keep stock away from the main premises. Brokers need to understand where vehicles are kept, how often they move and how many may be exposed at one location.
Good security is essential. Measures such as secure boundaries, lighting, CCTV, alarms, controlled access and careful key management should reflect the number and value of vehicles held. Overnight and off-site storage need particular attention.
Keeping the business trading
A motor trade business depends on its premises, staff, equipment and access to vehicles. A fire, flood or other serious event could stop repairs, sales or vehicle movements almost immediately. Business interruption cover is about more than repairing a building. It can help protect the income needed to recover and return to normal trading after an insured event.
The impact will differ from business to business. A garage may lose essential workshop equipment, while a dealer may lose its premises or stock. The important point is to understand what the business relies on, how long recovery could take and whether the cover reflects that.
Customer vehicles bring added responsibility
Garages and dealers regularly take responsibility for vehicles they do not own. From the moment a customer hands over the keys, the business is trusted to keep that vehicle safe. A vehicle may be waiting for repair, undergoing a service, being prepared for sale or driven for testing, collection, or delivery. Its value and location can change during the day, as can the people who have access to it. Clear handover records, secure key control and sensible rules about who may move or drive vehicles can reduce misunderstandings and losses. Brokers should understand the whole journey: when the vehicle arrives, where it is kept, who works on it and how it leaves.
The customer journey is changing too
Customers now research, buy and maintain vehicles in different ways. They expect quick answers, convenient appointments, and a smoother experience from first enquiry to final handover. Online sales and digital enquiries mean businesses increasingly compete on service as well as price. Changing petrol, diesel and charging costs can also influence which vehicles customers want, what dealers choose to stock and the cost of collections and deliveries.
Some traders are responding with vehicle delivery, mobile servicing, and new ways of selling online. These services can support growth and customer loyalty, but they may also mean more driving, more off-site work, and different responsibilities for staff.
These changes can create valuable opportunities. They can also introduce risks that were not considered when the policy was first arranged. A regular review helps keep the insurance aligned with the business.
