When taking out a motor trade insurance policy, it is for the sole use of those operating within the motor trade industry. So if your occupation entails motor trade duties such as vehicle service and repair, collection and delivery, valeting or car sales, a motor trade policy strictly applies to you – thus meaning that any vehicle which is your property as well as any vehicle under your control can only be driven by you.
Given it is your responsibility to manage several vehicles under your authority, it is absolutely vital to organise the relevant cover: that of an effective motor trade policy. However, many people hear the term ‘motor policy’ but don’t fully understand the differentiation between private motor insurance and motor trade insurance. Where private motor insurance applies to both the vehicle and the driver, motor trade coverage is tailored for just the driver – meaning you don’t have to arrange individual policies for each vehicle driven for motor trade purposes.
A worthwhile investment, this type of coverage has been designed with the driver in mind. So you can choose to be the only driver, or whether you wish to add ‘named drivers’ – including friends, relatives and fellow workers. But it’s important to note that the more drivers you add to your policy, the more likely your premium is to increase.
In addition, you should also take into account the types of vehicles you will be driving. The majority of any mechanically functioning vehicle can be insured, but any motors that are deemed expensive or unusual will require specialist coverage – which may lead to your premiums rising. Restrictive coverage may also be a factor in these circumstances.
Have you thought about the different extensions available?
Demonstration purposes – This feature enables the motor trader to let a potential buyer test drive one of their showroom vehicles prior to buying the motor. A hugely essential part of the purchasing process, as many customers would not even think about buying the vehicle without first having a test drive.
Public Liability – No one likes the idea of getting caught up in a costly legal wrangle, which is why it’s also a good idea to look into public liability. This particular cover protects those in the motor trade from any possible claims made against them as a result of their negligent actions. For further information on this type of coverage, please speak to one of our advisors.
You should also consider to what extent you require coverage; such as third party only, third party fire and theft or comprehensive. Remember, these aren’t just your vehicles – it’s also your customers’.
What do I get with DNA Insurance?
Twenty years in the motor trade business has allowed our experts to garner inside information, establish successful relationships with a network of reputable insurance providers in order to provide you with the very best policies.