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:
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
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.