A two year contract has been awarded to NIG insurance by the Retail Automotive Alliance.
The deal was done via brokers Willis UK.
The RAA represents 22 independent motor dealer groups and has a combined turnover of £2.5 billion a year.
The Motor Trade and Self Drive Hire insurance was originally put together by the RAA and Willis in 2007.
It was agreed to renew the deal again this month after a full tender process, while the deal, which is worth around £2million in premium, is managed by insurance brokers Willis.
Willis outlined a strategy for renewal in early 2009 which followed the shareholder members of the RAA re-appointing both NIG and Willis for a further 2 year period.
A competitive tender process was held between 13 insurers, resulting in two finalists NIG and Allianz, whereby each made a presentation to the RAA shareholder members at a shareholders meeting in London.