Author Archives: Dean

  1. What Optional Extras can I include with Motor Trade Insurance (and are they worth it)?

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    Motor trade insurance is essential to anyone working in the motor trade. This can include owners of bodyshops, garages, dealerships, car lots and even car valeting services. If you alter, maintain, inspect, test, repair, clean or service any kind of motor vehicle then you will need to take out motor trade insurance.

    There are various types of motor trade insurance cover, which range from third party only to a combined motor trade insurance policy. Each policy will come with optional extras as well, which you will be able to pick and choose from.

    Below is a brief guide to each.

    Employers Liability Cover

    Because individuals working in the motor trade tend to drive or work on a number of vehicles, motor trade insurance actually insures the motor trader him or herself, instead of just the vehicles in question. Employer’s liability extends this cover to indemnify the motor trader in the event of an employee sustaining an injury whilst at work.

    Public Liability Extension

    Public liability cover means that the motor trader is covered in the event a member of the public suffers injury as a result of any activity related to their work. This is very important to have if the nature of the motor trade business in question involves a lot of contact with the public (which most do).

    Combined Policy

    Combined policies are really the ultimate type of cover and peace of mind if you run your business from a dedicated site, even if that site is your home or you only work part time. Combined policies will cover your entire business, including the premises, money, liabilities, tools, vehicles and all contents located at or associated with your business.

    Protected No Claims Bonus

    This option will allow you to protect your no claims bonus in much the same way you might do with regular motor insurance.

    Excess Buyback

    You are also given the option to reduce the excess paid in the case of a claim. This will increase your premium to some degree, depending on how much you wish to reduce the excess.

    Windscreen

    This will cover the windscreen repair of your personal car, whilst at work.

    Breakdown

    This will cover your own vehicle for roadside assistance and home start. European cover is also an option.

    Gadget Insurance

    This optional bolt on will cover your personal vehicle for any gadgets you have installed such as car stereos, for up to £1000.

    For more information on motor trade insurance and the optional extras available to you, call one of our dedicated and friendly team for a chat today on 08445 732 400.

  2. Choosing the right kind of Motor Trade Insurance for your Business

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    If you’re thinking of going into the motor trade business it’s important to understand your insurance options. Motor trade insurance fundamentally differs from private motor insurance in that it is specially tailored to cover the driver and not the vehicle as well. This is an extremely important distinction as it insures a motor trader to drive and work on multiple vehicles.

    There are several types of motor trade insurance available and these can be broken down into three groups:

    Roadrisk Only: The main type of insurance a motor trader must take out. Roadrisk covers the driver only and comes in three options, much like regular motor insurance policies:

    Third Party
    The minimum level of cover for anyone operating repairing, servicing, valeting, cleaning, driving or buying or selling vehicles for profit. Third party will cover repairs to a third party’s vehicle in the result of damage sustained.

    Third Party, Fire and Theft
    As above but will cover the vehicle in the extent of a fire or a theft

    Comprehensive
    As above but will cover the motor trader’s vehicle for any accidental damage sustained.

    Motor Trade Liability Insurance:

    One of the limitations of a roadrisk only policy is that it will not protect you if an individual is injured as a result of negligent actions. For this you need either public liability or employers’ liability insurance, which will indemnify you from accidents to your employees or the general public. Sales and service liability indemnifies you for injury to a third person, as well as damage to their property as a result of sales, servicing, testing, inspection, maintenance or repairs to a vehicle, as well as the buying or selling of any products connected to the motor trade.

    Combined Motor Trade Insurance:

    Combined motor trade insurance is the most comprehensive option in terms of protection for your entire business. Depending on the type of combined cover you opt for, this will cover your business premises, contents, engineering inspection, vehicles in transit, money and tools. Most combined motor trade insurance policies will include professional, public or employee liability, or a combination of all three.

    There are a whole range of add-ons and extensions to these policies, such as insurance for demonstration purposes, which allows you to let potential buyers test drive vehicles; an essential for any motor trader. You can also add named drivers to the policy, meaning your employees can also drive multiple vehicles.

    For more information on the options available and the best policy for your business call us on 0844 573 2400 and speak to one of our Motor Trade Insurance experts today.