Motor trade insurance is a legal requirement when you are in a motor trade business. You will have to sign up for a motor trade insurance policy if your business involves having clients’ vehicles under your custody, care or control. These would apply to businesses engaged in auto sales, including both new and pre-owned vehicles. Besides, the insurance policy would apply to businesses in vehicle repair, servicing and restoration sectors.

 In fact, many do not have a clear idea of what a motor trade insurance policy exactly covers and what to look for when trying to buy motor trade insurance online or over the phone. Here is a list of just a handful:

• Businesses involved in vehicle selling
• Motor traders running the operations from home
• Vehicle repair centres
• Servicing & MOT stations
• Breakdown & recovery firms
• Scrap dealers
• Businesses that are involved with vehicle delivery
• Collectors & restorers of specialist vehicles
• Firms that are into selling or/and installing vehicle parts & accessories
• Car valeting businesses
• Businesses that are involved with vehicle repossession

Size doesn’t matter

If your business falls into any one of those categories mentioned above, you should sign up with a motor trade business insurance policy. Don’t worry about the business’s size, as an insurance policy covers newly founded motor trade start-ups and large established businesses. And if you don’t have a fixed business premises, you can even find a ‘motor trade insurance working from home’ policy.

Whether you sell cars and need a car dealer insurance policy or you are on the road and need car maintenance insurance cover for your garage, finding the most appropriate motor trade insurance policy is a must when you are in this industry.

The different types of cover available with a motor trade insurance policy

Motor trade insurance is a broad term that covers a wide range of things. Let’s have a look at the various types of covers you can apply for.

3rd party

This is the most basic motor trade insurance coverage that you have to take up when you are into any of the motor trade businesses. It is the legal minimum requirement to be followed by the motor trade businesses in regard to this particular insurance policy. The 3rd party cover would take care of damage, loss of life, or injury caused by your business to 3rd party vehicles and people. Your own car won’t be covered here, but your passengers will be covered. This is the cheapest of all motor trade insurance policies, so it may not be appropriate for somebody needing mobile mechanic insurance, for example.

3rd party, fire & theft

As the name says, this motor trade business insurance policy extends cover for damage caused by fire accidents or theft to any vehicles under a motor trader’s control or custody. If you can afford a little more than basic insurance coverage, this policy is a must-have for you.

Comprehensive motor trade insurance

A comprehensive motor trade insurance policy protects not only the vehicles under the motor trader’s custody or control but also his own vehicle if there is any form of accidental damage. Say, in case you, unfortunately, get into an accident while on a test drive with your client’s car before purchasing it, your insurance provider would cover the damages caused to the car you crashed into and also your client’s car that you were driving. Similarly, this would likely be beneficial for someone needing car dealer insurance as you’ll often be in possession of multiple vehicles.

Employer’s liability insurance

If you are running your motor trading business with an employee or a group of staff, you must get an employer’s liability motor trade insurance. This policy would take care of the compensation in case any of your staff dies or gets injured on your business premises or while working with any of your business cars. Added to the basic 3rd party insurance, every motor trader should get the employer’s liability insurance, even if he is not going for the other insurance policies.

Product liability motor trade insurance

This motor trade insurance policy would be valuable for those motor traders who are in the car servicing and repair industry and require specific car repair insurance cover. Besides, those who supply car parts & accessories would also benefit from Product liability motor trade insurance. Such an insurance policy would take care of the compensation in case your client charges you when you have mistakenly fitted a defective part in his car.

Public liability motor trade insurance

What if one of your customers hits himself at your garage premises and sues you? Such accidents are not exactly uncommon, and you must have public liability motor trade insurance to help you. This insurance policy will save you if anybody visiting your business premises slips or gets injured there.

Combined motor trade insurance

You have it in the name only. A combined motor trade business insurance policy would cover all the stuff mentioned above and more. These include cover for damages suffered by your machinery, plants, premises, fittings, fixtures, tools and vehicles sitting at your business premises. Moreover, depending on which policy you choose when looking to buy motor trade insurance online, this would also cover personal possessions belonging to your customers or employees kept within your premises.

Finding a motor trade insurance policy

When it comes to finding a motor trade insurance policy, you would have to submit documentary proof certifying that your business is operating in the motor trade sector. This insurance would apply to businesses engaged in all the major types of vehicles like cars, motorbikes and vans.

There is no lack of motor trade insurance providers if you need to buy motor trade insurance online or over the phone, but not all companies will suit your needs. You need to take care of certain factors while talking to an insurance provider. First of all, the company’s industry reputation and experience matter a great deal here. You must check how well your chosen provider is acknowledged in the industry and what the previous customers have to say about the firm.

It’s often better to go for an experienced firm. The more experienced the provider is, the better his knowledge about the types of motor trade business insurance policies should be. Please visit our Motor Trade Insurance page to learn more.