Motor Trade Insurance
Choosing the best auto insurance policy isn’t easy. In fact, it can be time-consuming and requires a lot of effort on your part.
Thankfully, we completely understand and have found a way to make this lengthy process as fast and painless as possible. Our team of specialists, along with a straightforward quote system, will allow you to get the coverage you need fast.
After lots of work, we’ve built a reputation for offering flexible terms, affordable prices, and accommodating even the strangest risks. Whether you run a well-established car dealership, run a mobile mechanic’s business or anything in between, we’ll find a policy that provides the coverage you need.
Before you get started filling out our quote form, here’s a quick overview of what motor trade insurance is, how it works, and who needs it.
What is Motor Trade Insurance?
A motor trade insurance policy is required for anyone who runs a business involving vehicles, as well as anyone who owns a business that provides vehicle-related services, such as a mechanic or car valet.
When you own a motor trade business that deals with other people’s vehicles, you are required to insure the vehicle(s) with a specialist insurance policy anytime the vehicle is under your ‘care, custody, and control. Care, custody, and control refers to any vehicle left in your business’s possession, which is no longer covered by the owner’s own vehicle insurance policy.
Motor trade insurance covers a wide array of service providers, including:
• Car sales dealerships
• Breakdown/ towing services
• Vehicle servicing
• Full and part-time car/ motor traders
• Car valet services
• Motor mechanics
• Salvage, scrap, and vehicle dismantlers
It’s important that you tailor your motor trade insurance to your specific field. This is because motor trade insurance does offer coverage for such a wide variety of businesses.
A few of our top policies include:
• Minder Policy for anyone dealing with a customer’s vehicle
This includes insurance policies for the following:
o Mechanical repairer
o Valeting
o Accessory/ fitter
o Crash and body repairer
o Tire fitter and exhaust
o Vehicle assessor
o Window screen fitter
o Breakers yard
o Car jockey
o Long stay parker
o Vehicle delivery
o Trade plate
o Van traders
o Repossession agent
o Young driver’s insurance for individuals under the age of 25
• Trader Policy for your own vehicles
This includes insurance policies for the following:
o Commercial Vehicle Importer
o Commercial Vehicle Exporter
o Car Dealer at the Premises
• Enthusiast Policy for anyone who deals in trading on a part-time basis
This includes insurance policies for the following:
o Part-Time motor trader
o Restorer and Collector
o Car dealer at Home
Who Needs Motor Trade Insurance?
Anyone who acts as a motor trader, whether it’s all the time or on a part-time basis, is required to have motor trader insurance. This applies to limited companies, as well as self-owned businesses that take responsibility for other owner’s vehicles.
The type of motor trade insurance you must have is determined by what part of the motor trade industry you work in. Here’s an example. If you are a mechanical repairer, there will be times when you have other owner’s vehicles under your ‘care, custody, and control.’ This means you will need a policy that covers the other owner’s vehicle. However, if you operate in sales and often demonstrate vehicles, you will need a different type of policy.
If you operate in multiple areas, you will need a policy that includes all of your motor trade activities.
What Coverage is Provided by Motor Trade Insurance?
The coverage you receive with a motor trade insurance policy depends on several factors, just like it does with other types of insurance. Remember, there is a huge array of motor trade businesses, so the coverage you get can vary greatly. In most cases, your coverage will include:
• Road risks: This policy covers your vehicles and any other vehicles that are not owned by you, but are being used by you to conduct your motor trade activity.
• Parts only cover: Third party is usually the simplest coverage available. However, “parts only coverage” may be an option, depending on the type of motor trade business you own. Be aware that ‘parts only cover’ does not provide the legal protection needed to take the vehicle on the road.
• Combined motor trade insurance: This policy includes coverage for road risks, equipment, and your premises. If you require multiple policies, a combined motor trade insurance policy may be a better option.
• Public liability: This protects you, as well as your employees, from any claims made by the public. This can be included with your single motor trade insurance policy.
• Employer’s liability: If your business has one or more employees, employer’s liability is required. This applies even if they will not be driving vehicles. It can be included as part of your standard motor trade insurance policy.
• Material damage: This coverage applies to any damage to stock vehicles or equipment that you own. For example, if you’re a salesman, it applies to unsold vehicles.
• Product liability: This coverage protects you against any claims if you fit a part to a vehicle ends up being defective.
• Vehicle types: Be certain that your insurance covers any vehicle type, including cars, HGVs, and vans, that you or your staff may drive.
• Extra drivers: If your business requires that employees drive customers’ cars, you will need to choose between a policy for ‘any driver’ or naming specific employees as extra drivers, which tends to be the more affordable option.
Is Motor Trade Insurance Mandatory?
Anyone who does business in the motor trade industry is required, by law, to have a minimum level of motor trade insurance. This includes car dealers, valets, and mechanics, both full-time and part-time. If you do not, you are breaking the law.
Third-party is the minimum level of cover you must carry, though additional cover is recommended. In addition to making sure you have the required insurance, you are also required to provide information to the Motor Insurance Database (MID).
What Level of Cover do I Need?
There are three levels of cover to select from, including:
• Third-party: This is the absolute minimum cover you can have for vehicles operated on public roads. It is also the least expensive. Third-party covers you while driving, whether it’s your vehicle or a customer. It includes any damage you may do to a third party.
• Third-party fire and theft: This cover includes everything in third-party, as well as protection against damage to vehicles that is caused by theft or fire.
• Comprehensive: In addition to everything listed above, a comprehensive policy includes any accidental damage to your vehicle or a customer’s vehicle that is under your ‘care, custody, or control. If you were to have an accident while operating a customer’s vehicle for your business, the insurer would be responsible for the repair costs (minus the excess). Put together a large collection of motor trade clients.
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