Does Motor Trade Insurance Cover Vehicle Theft From a Workshop?
It can, but “theft cover” is rarely unconditional. The customer or stock vehicle must fall within the insured category and limits, and the loss must meet the theft definition and security conditions.
Theft using stolen keys, burglary, robbery, hijacking, fraud and voluntary parting can be treated differently.
Security conditions are claim conditions
Policies may require a working alarm linked to armed response, locked gates, immobilisers, secure key storage or vehicle tracking. Load shedding does not automatically excuse a failed alarm; backup power and response logs matter.
Insurers also examine who had access, when the premises was locked and whether all keys can be produced.
Limits and accumulation still apply
A policy can include theft but still cap the highest individual vehicle or the total at one premises. Overflow parking at an undeclared address may not be covered.
Fraudulent collection is a special risk
If someone impersonates a customer and staff voluntarily release the vehicle, the event may not meet an ordinary theft definition. Verification and release procedures are essential, and a specific extension may be needed.
Burglars force a gate, disable an alarm and steal two customer vehicles using keys taken from an unlocked desk. The insurer will test forcible-entry and alarm conditions, but may also rely on a key-storage warranty if one applies. A secure electronic key safe could be decisive.
Questions an insurer will ask
- Which theft events does the wording define and exclude?
- What alarm, response, tracking and key warranties apply?
- Are vehicles parked outside or at another address?
- Can the business prove the maximum overnight values?
- How are customer collections verified?
General information only. RMI requirements, fees and processes can change; confirm current requirements directly with RMI. Insurance cover depends on the insurer’s schedule, wording, limits, excesses and conditions.