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The ins and outs of motor trade insurance in HK

Author

Kwiksure Team

Created On

2018-03-04

Edited On

2026-08-13

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Insurance

A private motor insurance policy is designed to cover your vehicle for general use, depending upon the type of policy and level of coverage. In contrast, motor trade insurance is a special type of car insurance that is used mainly by people operating car-related businesses - from second hand vehicle dealers to garages/repair shops - for protection against mishaps incurred as a result of driving their customers’, or even their own vehicles.

As with any type of insurance, it’s always essential to do some research in advance so that you get the best out of your motor trade insurance policy. To that end, our experts have shared the following items anyone considering this type of policy should be aware of.

Table of contents

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Do I need a motor trade policy?
Can I really drive any vehicle with motor trade insurance?
Where can I go for motor trade insurance in Hong Kong?

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Motor trade insurance, or trader’s insurance, covers businesses and their staff when driving their customers’ or their own vehicles for trading purposes. The major difference between private car insurance vs. motor trade insurance is that the former specifies the driver and the vehicle, whereas the latter specifies the driver only. Simply put, a trader’s insurance policy allows the insured or an employee of the insured to drive any vehicle, provided that the vehicles are being driven for motor trade purposes and apply to the policy’s Terms and Conditions.

Again, please bear in mind that motor trade insurance cover applies only when the vehicle(s) is used for trade purposes in connection with the policyholder’s business operations. This means that if you’re driving your business’ or customer’s car to go out for a occasion that has nothing to do with operating your business (e.g. dinner with friends, grocery shopping), you won’t be covered by this type of policy.

Like private car insurance, there are two main levels of motor trade insurance cover in Hong Kong:

Do I need a motor trade policy?

Motor trade policies are suitable for businesses or individuals who work in industries that require them to drive vehicles that do not necessarily belong to the business or employee. In general, if you are responsible for the care and custody of your customers’ vehicles or a stock of vehicles held for sale, for example: dealerships, vehicle mechanics, tire fitters, scrap yards, etc. you’ll need some form of motor trade cover. Please note here that this doesn’t only apply to limited companies; self-employed individuals who interact with vehicles for trading purposes, whether on a full or part time basis, will also need the right type of motor trade policy.

Can I really drive any vehicle with motor trade insurance?

As described above, a motor trade insurance policy covers any vehicle driven by the insured, as long as they’re used for trading purposes. In Hong Kong, motor trade policies are subject to two main types of conditions: “Named Driver Basic”, and “T-Plate”. Essentially, trader’s insurance coverage with the “Named Driver Basic” condition only applies when the vehicles driven are “road legal”, meaning it must be registered with the Hong Kong Transportation Department. To learn more about vehicle registration and licensing, check out our blog post on the topic here.

On the other hand, motor trade policies with the “T-Plate” condition can cover any vehicle, even if it’s not registered in Hong Kong (e.g. left-hand-drive, newly imported cars). However, for coverage to apply, the vehicle will need to be used under a trade license, and display the accompanying trade plate (also known as t-plate) at the foremost and rearmost parts of the vehicle.

Please note here that anyone applying for motor trade insurance will need to provide proof that they have an existing trade license to qualify for coverage. For specific instructions on how to apply for a trade license in Hong Kong, check out the Transport Department’s website here.

Where can I go for motor trade insurance in Hong Kong?

Navigating through the hundreds and thousands of different insurers and policies can be hard, and knowing whether you’re getting the best plan can be even more of a challenge. For a free, no-obligation quote, or some expert advice on motor trade insurance, get in touch with our expert team at Kwiksure today!

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The above information is for reference only. Kwiksure takes no responsibility for the accuracy and timeliness of the information. For the coverage, mode of compensation, benefit limit and premium levels of any specific insurance plan, please refer to the relevant policy terms.

Author

Kwiksure Team

Kwiksure is a licensed motor insurance brokerage company with over 20 years of experience in insurance. The company strives to simplify insurance and select the best insurance plans for customers that fit their budget and coverage needs.

Kwiksure provides a range of insurance products, including car insurance, motorcycle insurance, cross-border insurance between Hong Kong and Mainland China, home insurance, travel insurance, domestic helper insurance, and voluntary medical insurance. The team has been named "Best Car Insurance Broker" and "Outstanding Leadership Award" by various media outlets over the years.

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