Motor Trade Insurance

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What is motor trade insurance ?

Motor trade insurance, or traders’ insurance, is a tailored policy crafted for the automotive industry, ensuring cover for employees handling customer vehicles and the company’s own fleet. It’s indispensable for various sectors, including repair, servicing, and sales, providing comprehensive cover for all team members, regardless of their experience level.

When selecting the right policy, it’s crucial to understand the specifics of what is covered, including the vehicles and scenarios protected, as well as assessing the level of protection, considering liability limits and deductibles. This detailed attention ensures that you choose a policy that fits your business’s unique needs.

Beyond driving customer cars, motor trade insurance is vital for any business interacting with customer vehicles, offering a safety net and peace of mind for both motor traders and clients, and safeguarding against unexpected risks.

Related Read: What is motor trade insurance?

How does a motor trade insurance policy work?

What types of businesses need motor trade insurance?

Motor trade insurance is crucial for various businesses within the automotive sector, offering tailored protection against specific vehicle-related risks. Whether involved in buying, selling, repairing, or any other vehicle interactions, a comprehensive policy is likely essential.

Key business needing motor trade insurance

  • Car dealers: Protect inventory and cover liabilities, especially during test drives.
  • Valeting and detailing services: Ensure cover for potential damages to customers’ vehicles.
  • Breakdown and recovery firms: Mitigate risks associated with roadside assistance.
  • Scrap dealers: Address environmental and safety hazards related to vehicle scrapping.
  • Car restoration businesses: Safeguard operations, particularly when restoring classic or damaged vehicles.
  • Car jockey services: Found at airports or large venues, these services require protection against damages during vehicle handling.
  • Garages (Repairs, MOTs, Services): Secure comprehensive cover for liabilities and potential damages.
  • Bodyshop repair garages: Specialising in vehicle bodywork, these garages need specific cover for potential damages.

This list is not exhaustive, and many other businesses in the automotive industry could also benefit from motor trade insurance. The flexibility of most policies allows for cover of all employees and the entire fleet of vehicles, ensuring a bespoke solution for different business models.

To ensure adequate protection, assess the specific risks associated with your business type and engage with an experienced insurance provider. They can guide you through the process, helping you understand the cover options available and tailoring a policy to meet your unique needs. Remember, motor trade insurance is not just about legal compliance; it’s a vital tool for risk management, providing peace of mind and robust protection for your business.

What level of cover do I need?

What does traders’ insurance cover?

What doesn’t motor trade insurance cover?

Can anyone get motor trade insurance?

Can I get part-time motor trade insurance?

What is combined motor trade insurance?

What else can motor trade insurance cover?

How much does motor trade insurance cost?

How can I keep my insurance costs down?

“If starting out as a mobile mechanic is a fresh endeavour, I’d strongly advise individuals to ensure they’ve got the right insurance. Mechanics face special risks that they need safeguarding from, and if the mechanic plans on driving their customers’ vehicles, a kind of motor trade insurance called ‘road risk insurance’ isn’t just a smart business move, it’s a legal requirement.”

Chris Richards, Managing Director at Utility Saving Expert

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Frequently Asked Questions (FAQs)

When do I need to advise my insurer of changes to my business?

If you make any significant changes to your motor trade business, it’s essential to notify your insurer. This includes adding or removing drivers, changing your trading address, moving into business premises, changing the trades you operate in, taking on new employees, increasing the number of vehicles you trade, or any other changes that might require you to modify your insurance cover.

How can I add or remove vehicles from the Motor Insurance Database (MID)?

The MID is a central record of all insured vehicles in the UK. If you need to add or remove a vehicle from the MID, you should contact your insurer with the necessary details. This ensures that your vehicles are correctly registered and comply with Continuous Insurance Enforcement (CIE) regulations.

What options are available for motor traders working from home?

If you are a motor trader working from home or on a part-time basis, you may qualify for a Road Risks Policy. This type of policy is tailored to the needs of home-based traders and can be obtained by contacting specialised insurers. It’s essential to provide accurate information about your business to get the right coverage.

Can I upgrade to a traders combined policy?

If you have a Road Risks policy and want to upgrade to a Traders Combined Policy (suitable for motor traders with premises), you can contact your insurer to discuss the options. A Traders Combined Policy offers more comprehensive coverage, including premises and liability protection, and may be more suitable for growing businesses.

What is the process for making a claim on my motor trade insurance policy?

The process for making a claim on your insurance policy will vary depending on your insurer. It’s advisable to refer to the claims section of your policy or contact your insurer directly for guidance. Prompt reporting and providing all necessary documentation will help ensure a smooth claims process.