The Changing Face of the Motor Trade: Why Expertise, Technology and Collaboration Are Driving the Future

The motor trade industry is in the midst of a significant transformation. Evolving customer expectations, rapid technological advancements and the need for greater transparency are reshaping the way insurers and brokers operate. At Covéa, we’re proud to be specialists in this space, and as Gary Clayton explains, our strength lies in combining deep expertise with strong partnerships.

Specialisation: The Key to Informed Decisions

One of the most pressing challenges in the motor trade sector is the complexity of risk. Gary highlights that the quality of information provided at the outset can make or break the underwriting process, “If we’re presented with risks that aren’t clear in terms of what their trades are, then we can’t make a proper informed decision,” he says.

This is where specialisation becomes critical. Brokers who invest in understanding the nuances of the motor trade, from the types of businesses involved to the specific risks they face, are better positioned to deliver accurate, detailed submissions. At Covéa, our dedicated underwriters can make quick, informed decisions, but the quality of the information provided is key.

Technology as a Growth Enabler

The motor trade is not immune to the digital revolution. Technology is transforming how brokers engage with clients and the market. Gary points out that brokers who embrace digital tools and marketing strategies can gain a competitive edge:

“The use of technology, in terms of how brokers market themselves and attract enquiries from niche areas, is something they should consider,” he explains.

From online quoting systems to data-driven insights, technology enables brokers to streamline processes, improve accuracy and deliver a better customer experience. Those who adapt quickly will be best placed to thrive in an increasingly competitive landscape.

Opportunities for Brokers

For brokers, the motor trade represents a significant growth opportunity. Covéa is committed to expanding its presence in this sector, and Gary is clear about what success looks like, “This is an area of business we are definitely looking to grow. We have specialists who can make quick and informed decisions, but the better the information provided, the stronger the outcome for everyone involved.”

High-quality presentations and detailed submissions not only speed up decision-making but also build trust and long-term relationships. Brokers who consistently deliver strong, well-prepared cases will reap the rewards.

Dispelling the 14-Day Myth

One of the most persistent misconceptions in the motor trade is the belief that clients have 14 days to update the Motor Insurance Database (MID) after buying or selling a vehicle. Gary is keen to set the record straight, “There’s a myth that you have 14 days to tell us you’ve sold or purchased a car – that’s not true,” he says. “Customers should update the MID straight away. Waiting 14 days could lead to compliance issues and gaps in cover.”

This misunderstanding often stems from confusion around internal regulatory timelines, but the message is clear: immediate updates are essential for compliance and customer protection.

Looking Ahead

As the motor trade continues to evolve, one thing remains constant, the need for collaboration between insurers and brokers. By combining specialist knowledge, embracing technology and maintaining clear communication, we can deliver the best outcomes for clients and strengthen our position in a changing market.