Get a Motor Trade Insurance Policy

If you are a small business owner or individual whose livelihood revolves around either the purchasing or selling of vehicles, if you specialise in the repair of other vehicles, or if your general business practice revolves around working on or with more than one vehicle, you may need to strongly consider which Motor trade insurance brokers and which insurance policy is the best for you. Motor Trade is the generalised name for an insurance policy that caters to people or businesses that work in or around the car industry.

What is Motor Trade Insurance?

Motor Trade insurance is the cover that is required by business owners that specialise in anything revolving around vehicles. It is a requirement for a company or individual to have this specific insurance if you work with cars in any way. Each level of cover offers a variation in protection, and as somebody who will likely be working with a several vehicles, and dealing with members of the public, you may have to make a decision on which cover will be most beneficial for yourself and your business.

Who Needs Motor Trade Insurance?

If you specialise in anything regarding working with vehicles , then you may need Motor trade insurance.

If you are unsure on whether you meet the requirements that enable a Motor Trade insurance policy necessary for you, then you could always call a specialist insurance broker who will help you determine if you need one, and which one is best for you.

Examples of people required to have Motor Trade insurance are;

  • Car Dealers
  • Mechanics
  • Tyre & Exhaust Fitters
  • MOT Centres
  • Repair Call-outs
  • Valeters
  • Vehicle Recovery Agents
  • Car Jockeys

What Types of Motor Trade Insurance are Available?

There are several levels of Motor Trade insurance that each provide a different degree of protection. Each policy needs to be suitable to the specific business that it is covering, so you need to ensure that you are well informed on what you or your business find necessary in an insurance policy.

THIRD PARTY ONLY is the legal minimum level of insurance cover which any motor trader needs in order to operate, and its main aim is to cover any third party if you were ever at fault in an accident or incident. This means that the insurer covers the other person’s property and vehicle, but you are liable for your own vehicle cover/repairs if you are responsible for the accident.

Third Party Only may be ideal insurance for an individual or company that is just starting out, and doesn’t necessarily have the money to justify a higher level of cover.

THIRD PARTY, FIRE AND THEFT is the same as Third Party Only but with the added security to cover the policyholder’s vehicle under certain circumstances.

This cover level protects the policyholder for:

  • Any damage that happens to their vehicle from the result of an attempted theft, such as broken windows or locks.
  • Any fire damage to their vehicle
  • Replacing their vehicle if it were to be stolen

COMPREHENSIVE is the highest level of cover and is a policy that includes everything offered by Third Party, Fire and Theft, but also extends to protect the policyholder against accidental damages to their own vehicle.

Whilst Comprehensive cover is the highest Motor Trade insurance policy level, it still doesn’t cover a business or individual from everything. Usually a Comprehensive insurance policy doesn’t cover things like Breakdown cover so you may need to add this to your policy. Different areas of the trade will need cover for different activities; for example, a motor dealer will need Demonstration cover to allow prospective clients to test drive your vehicles, whilst a mechanic might need Product Liability to cover damage caused by faulty parts or workmanship.

MOTOR TRADE COMBINED is an extra policy which can also cover any business-related items such as tools, equipment and even cover the building in which your business is based. This policy is aimed towards traders who would like to cover the premises they operate their business from – such as their workshop, car lot or a separate building.

Why is it important to find a leading Motor Trade Insurance Broker?

If you are a business owner and believe you require a Motor Trade insurance policy, it is important that you find the policy that is most suitable for your needs. By using a leading Motor Trade insurance broker, you are ensuring that you have the right advice and help to make sure you get a high quality of cover for your business. For you to be able to get the best out of the policy you’ve chosen, you first need to be able to understand all the ins and outs of what Motor Trade insurance does for your business.

A Leading Motor Trade Insurance Broker will have a reputation for being extremely knowledgeable on what suits what needs, this includes both the level of cover, and what is cost effective for the individual. If you are unsure of the needs of your business, a leading broker will able to offer valuable advice and assistance on the Traders insurance policies available and what best fits your business and budget.