The Key Facts About Motor Trader Insurance

(Last Updated On: 02/02/2024)

Motor trader insurance policies will provide cover whether you are buying or selling vehicles. It provides cover from home to business premises and vice versa. It is not just for those selling vehicles, either, because it will provide insurance cover for those repairing or servicing vehicles. Also, for those offering tyre fitting and roadside breakdown services. It can be obtained by visiting somewhere like www.onesureinsurance.co.uk/motor-trader-insurance.

So, in this article, we shall examine the key facts concerning motor trader insurance.

Types of Motor Trader Insurance Policy

There are two types of motor trader insurance policies that can be chosen from. A motor trader can go for road risks or a combined policy. These two options will provide different levels of cover. The policies can be provided to motor trade businesses of different sizes. So, let us explore these two different types.

Road risks only insurance is a necessity for motor traders. You can then, as a motor trader, drive vehicles in connection with your work. This can be any vehicle you are in contact with, whether it be one that you are purchasing, selling, or repairing. It is good to know that you will be covered by insurance. It is financial peace of mind.

Combined motor trade insurance will, of course, include road risks as well as other extras. These include cover for business premises, tools, equipment, stocks of vehicles, employers’ and public liability cover, business interruption cover, engineering inspection cover, service and sales indemnity, money cover, loss of MOT licence, directors’, and officers’ insurance.

The business premises cover can be included whether premises are owned or leased. Motor trader’s insurance can cover portable hand tools as well as larger equipment such as lifting tables and ramps. Stocks of vehicles will mean customer vehicles and those of the business that end up being kept on the premises overnight. This will be up to an agreed limit. So, it does very much depend on the types of vehicles a garage repairs in terms of luxury as to what this figure needs to be. When it comes to money, a business will invariably deal with some cash payments, whether they can accept credit cards or not. So, it is important to have theft cover for that, depending on the amount dealt with. Employers’ liability cover is required by law, so would need to be purchased separately if not part of a Motor Trader insurance policy. Public liability up to £10m can also be provided. Business Interruption will be a must if you live in an area where flooding is likely. Although, you will need to check, in those circumstances, whether it might then be excluded. Generally, combined motor trader insurance policies will cover natural disasters outside a business’s control. So, it is worth checking all this possible extra cover out with your insurer so that you are fully covered with your motor trader business.

What Factors Determine How Much a Combined Motor Trader Insurance Policy Costs?

For road risks only cover, it will be a decision as to whether you want the third-party fire and theft or comprehensive cover extension. It will likely be a comprehensive cover that you need, to protect the vehicles of your customers. Also, to factor in will be the costs for accompanied or unaccompanied demonstration cover in respect of selling vehicles, along with any policy excesses.

Factors determining the costs of combined insurance cover as a motor trader will include where a business is located. Also, the number of staff that are employed, along with their driving experience. Any previous claims or motoring convictions will also need to be taken into account. The value of the stock on site will need to be calculated for the insurer as well as that of the tools and equipment used and stored on the premises for work purposes.

Types of Trades Included

A motor trader policy will cover garages that offer repairs, services, and MOTs, as well as those offering vehicle body builds. Also eligible will be commercial vehicle repairers, not just those working on private vehicles. Mechanics who work from home on either a full-time or part-time basis can have motor trader insurance cover too. Many mechanics are mobile these days and will also need the cover. Body shops are typical premises that make use of this type of insurance. Vehicle breakdown service providers will, in addition to the list so far, hold motor trader insurance. Anyone in the motor trade involved in the collection and delivery of vehicles will benefit from insurance that allows them to drive another’s vehicle on the public road and be covered in case of an accident.

So, it is useful to know that a combined motor trader insurance policy will provide you with a lot more cover beyond only road risks. Many different factors will dictate the premium, however. So, study the list of included trades to see if this is the policy that you need for your motor trade set-up and then check out the cover that you could benefit from.