Guide to Motor Trade Insurance in the UK
Motor trade insurance is used to insure all the vehicles and business contents insurance for the following trades.
- Auction houses
- Car lots
- Car showrooms
- MOT Centres
- Sole traders
- Limited Companies
- Working from home motor traders
Why you need Motor Trade Insurance
If you’re operating or working on a vehicle then you’re legally obligated to have it insured. When there are a large number of vehicles to insure it would be a nightmare to try and insure each one individually, not to mention incredibly costly. This is why motor trade insurance is the best option for people working in the motor trade.
What Type of Cover is available
The following covers are available for motor trade policy –
- Third Party only – This is the minimum level of cover you can get and it is the cheapest cover you can have. This cover allows you to legally run your business. However, if you have an accident your vehicle will not be covered and you will have to foot the bill to repair the vehicle you are driving.
- Third Party, Fire & Theft – again this is a step better than the third party only as it covers fire damage and theft. The vehicle you are driving will not be repaired in a fault accident.icy.
- Fully Comprehensive – This is the best road option and will cover the same as the above two options and covers your own vehicles should they be involved in a collision regardless of the party at fault. Be it your employees or yourself.
- Commercial Combined Policy – This type of policy is the best possible cover as it combines the comprehensive road risk cover and covers your premises, stock, tools, cash, employers liability etc.
- Part Time Policy – a watered down commercial combined policy that can be tailored to your specific needs.
Who can buy a Motor Trade Insurance policy
There are some minimum requirements that you have to meet in order to be eligible for motor trade insurance. These include –
- Drivers must be over 21 and under 74 years old
- Drivers must have full UK driving licences
- Proof that you work in the motor trade – Letter heads, premises, adverts etc,
Who Can Benefit From Motor Trade Insurance
- Vehicle body builders
- Service, Repair and MOT Garages
- Commercial vehicle repairers
- Mobile Mechanics
- Mechanics Working From Home
- Part Time Motor Traders
- Vehicle Recovery and Breakdown Agents
- Vehicle Delivery and Collection Agents
- Vehicle Body Repair Shops
What types of vehicles are Covered by Motor Trade Insurance
Standard motor trade insurance policy covers the following –
- Customers vehicles
- Any vehicle that belongs to the business
- Your own vehicles if you choose to add them
The types of vehicles that can be covered include –
- Most domestic cars
- Most types of motorcycles
- Vans that are no more than 3.5 tonnes
The following vehicles can be accommodated on the policy and these should be identified separately:
- Vintage, Cherished cars
- Super cars
- Imported cars
Standard motor trade commercial combined insurance policy covers: –
In addition to covering the vehicles and the drivers, as above, this policy covers
- Office contents
- Plant and Machinery
- Employers’ Liabilities
- Public and Product liabilities
Please call us to discuss your needs
Peace of Mind
A motor trade insurance policy is a cheap and affordable solution that offers you peace of mind should a situation arise that brings about a financial loss or puts your reputation at risk as the insurance policy will be in place to give you financial assistance. The insurance policy will ensure that you are not personally out of pocket, giving both you and your customer the reassurance that redress will be forthcoming. Putting things right in these circumstances is costly, time consuming and the invaluable insurance cover will be there to help you in easing the pain and burden of redress.