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Motor Trade Insurance
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Ultimate Guide to Motor Trade Insurance
If you work in the motor trade, you need to know about . It’s a big and complex subject and you need to know your way around it if you’re going to get the best trade insurance quote for your business. This guide is here to help.
We will cover frequently asked motor trade questions such as:
If you need to compare motor trade insurance quotes for your business, check out the insurance comparison tool on our site. It gives you access to a whole range of quotes for your business that covers the leading vehicle trade insurance brokers. It’s quick and easy to get an online quote within minutes.
What is motor trade insurance?
What is motor trade insurance and how does it work.
Beyond that, each motor trade insurance policy is tailored to your business’s requirements, so you can get precisely the level of cover you need. For example, if your business is in motor sales you can get cover for the vehicles you sell.
If your business involves what is known as the ‘care, custody and control’ of your customers’ vehicles (e.g. mechanic), the motor trade insurance policy protects your business and your employees while the vehicle is with you. You can also get cover for the premises you work from and any stock you carry.
Who needs motor trade insurance?
Motor trade can be divided into two parts (note that these two parts sometimes overlap). The size of your business does not matter – you still need motor trade insurance if you work in the motor trade part time.
Neither do you need to have premises to have a motor trade insurance policy – you still need insurance even if you run your business from home or go to customers’ home or place of work to carry out the work you do.
It will need to cover the vehicles you are buying and selling and give you and your employees cover when you drive them.
Examples of businesses who have customers’ vehicles under their care, custody and control and need cover include repair centres, MOT centres, mechanics, mobile repairers such as exhaust, tyre and windscreen fitters, vehicle delivery companies (who will also need trade plates) and companies that park customers’ vehicles on their behalf.
Compare all the leading motor trade insurance providers at Utility Saving Expert.
Motor Trade – What types of policies are there?
Motor trade road risk insurance
the cover you need if you are going to take your vehicles or your customers’ vehicle on the road.
Motor trade liability insurance
the cover you need to protect your vehicles, the vehicles in your care, your trade premises and your employees.
You can also choose to take out a combined motor trade insurance policy – this combines road risk insurance and liability insurance and provides additional cover too.
Road Risk – Motor Trade Insurance
Road risk motor trade insurance covers your vehicles and your customers’ vehicles when they are on the road under your care. It provides the cover you need in the event of an incident or accident.
If you do not take your customers’ vehicles on the road, you can consider taking out parts only cover. This is a very basic form of trader’s insurance and you would not legally be covered if you take your customers’ vehicles out on the road.
third party only- third party fire and theft
- comprehensive
Third Party Only – Motor Trade Insurance
Third party only is the most basic level of motor trade insurance that legally allows you to take your vehicles and your customers’ vehicles out on the road. It is typically the cheapest level of motor trade insurance cover
It is the minimum level of cover you need if you:
Repair, service or restore vehicles- Are a vehicle fitter, mobile tuner or valeter
- Run an MOT centre or garage
- Buy and sell vehicles for profit
- Drive your own vehicle or customers’ vehicles
- Have any of your vehicles or your customers’ vehicles on your business premises or at your customers’ or your home addresses.
With third party cover, your motor trade insurance covers any driver named on your policy to drive any trade vehicles in relation to your business. In the event of an accident that is your driver’s fault, you are covered for damage to the other party’s vehicle and injury to the other party.
It does not cover damage to the vehicle your driver was driving or for injury to your driver. Neither does it cover your vehicles or your customers’ vehicles if they are damaged, involved in a fire, lost or stolen.
Third party fire and theft – Motor Trade Insurance
Third party fire and theft cover is typically the mid-priced option when it comes to motor trade insurance.
This type of motor trade insurance cover gives you third party protection. It also gives you cover if your trade vehicles or your customers’ vehicles are damaged, involved in a fire, lost or stolen.
Comprehensive – Motor Trade Insurance
Comprehensive is typically the most expensive type of motor trade insurance policy. It provides all the cover that third party fire and theft gives you. It also covers:
Your trade vehicles or your customers’ vehicles if they are involved in an incident or accident that is your driver’s fault
Ito your driver if they involved in an incident or accident that is their fault.
Motor Trade Liability Insurance
Public Liability Insurance
If you have premises that your customers visit, as a motor trader you should consider public liability insurance. This type of insurance covers you if one of your customers is injured in an accident while they are on your premises.
It can also cover you if one of your customers has an accident that was caused by defective workmanship by you or one of your employees on a vehicle that was worked on.
Employer’s liability insurance
If you have one or more employees then employer’s liability is a legal requirement as a motor trader. It covers you and your business if one of your employees is injured or dies whilst at work.
Product liability insurance
Product liability gives you cover if a part you fit to a customer’s vehicle turns out to be defective and causes an accident or incident as a result. It allows your insurer to sue the manufacturer of the defective part.
Combined motortrade insurance policies
These combine road risk insurance and liability insurance. It also provides cover for things such as your business premises and tools. It is the most comprehensive type of trader insurance policy you can get and provides cover for almost every aspect of your motor trade business under one policy.
Other types of vehicle cover for Motor Traders
There are a number of optional extras you can add to your motortrade insurance cover. These can include motor trade legal expenses, breakdown cover and even part-time car trader insurance policies.
How to get the best motor traders policy:
Check that you are eligible, you must meet the following criteria:
You must hold a full UK driver’s licence.
Evidence that you work in the motor trade industry – you can provide receipts for activities you have carried out such as vehicles you have bought or sold or vehicles you have worked on.
It’s quick and simple to get an online motor trade insurance quote with Utility Saving Expert. We compare all the leading providers to help you find the most competitive price.
How much does car trade insurance cost?
Car trade insurance policies will vary depending on a number of different factors you’re your own requirements.
Vehicle types will affect your motor trade insurance premiums. If you sell or work on high performance vehicles or classic vehicles, you can expect to pay a premium on your insurance.
Driver age is another rating factor. Younger drivers will see higher prices, insurers may therefore exclude drivers under 25 from your trade insurance policy or charge a higher premium to include them.
The same applies to drivers with points on their licence. It is possible to get trade insurance if you or your drivers have motoring convictions or points on your licence, but you are likely to have to pay a higher premium for it.
Your location will play a role. Inner city businesses are likely to face a higher premium for their insurance than businesses in a rural location. This is because inner city businesses are seen as a bigger risk. Buildings with better security are likely to see discounts on their premium.
How can I get a cheaper motortrade insurance policy?
Compare a number of motor trade insurance policies- Only get the trader insurance cover you need
- Avoid unnecessary optional extras
- Agree to a higher voluntary excess
- Have better security on your premises
- Hire employees who prioritise safe driving
- Pay your premium annually rather than monthly
One Last Step to Getting Motor Trade Insurance
We now know what to look for when buying motor trade insurance. It’s time to get the policy that’s right for you.
We compare all the leading motor trade insurance insurance providers, it’s quick and simple to get a no obligation quote within minutes.
