Motor Trade Insurance
How do you qualify for motor traders insurance policy?
To qualify for a motor trade insurance quote, you will need to be able to prove that you conduct business within the motor trade industry and that your business is operating in a selling or servicing capacity when applying for motor trade insurance. The motor trade business must also be conducting business operations within the United Kingdom.
Motor trade insurers also usually require the policyholder to have at least 2 years experience operating a motor trade business in order to be able to provide competitive motor trade insurance quotes. They will usually look to provide quotes if you can prove you have previous trading experience within the motor industry.
Why do I need motor trade insurance policy?
As a motor trader you are legally required to have vehicle insurance in force to comply with the Road Traffic Act if you are driving your own or customer vehicles for motor trade purposes. You also need Employers Liability under the Employers Liability (Compulsory Insurance) Act 1969 if you are employing anyone in a clerical or manual capacity.
Who requires motor trade insurance cover?
If you are a business operating in the motor trade industry as sole traders, partnerships or as a limited company, whether you are buying and selling vehicles or servicing and repairing vehicles, you will be required to have motor trade insurance cover in place.
Examples of businesses that would require motor trade insurance policies are:
- Service and repair garages
- Vehicle sales and car traders
- Body shops and Paint spraying
- Classic car restorers
- Car Dealers
- Auto Electricians
- Breakdown and Recovery agents
- Mobile mechanics
Can you drive any car with traders insurance?
A motor trade insurance policy will enable you to drive a customer’s car and commercial vehicle that is in your custody or control as part of the policy and it will also insure you to drive your vehicles for business and social, domestic and pleasure. Traders insurance can be extended to insure spouses and employees for business or social, domestic and pleasure use.
What can motor trade insurance cover?
Let’s take a look at some of the insurance cover provided under a motor trade insurance policy in a bit more detail to understand who might need motor trade insurance.
Business premises otherwise known as the property damage section
This section of the motor trade insurance covers policyholders for buildings, business contents, stock, computer equipment, hand tools and business money.
Business interruption covers your motor trade business for loss of income due to an insured peril occurring.
An example of this would be a fire at the premises that results in a total loss where the policyholder would therefore be unable to trade.
The business interruption section of the motor trade insurance policy would provide cover for loss of income while the premises is being restored.
The business interruption section can also be extended to cover the following: –
- Suppliers extension – loss of income due to an insured event at a suppliers premises. An example of this would be a fire at a suppliers premises that results in your business not being able to obtain the parts/materials to carry out your business activities.
- Customers extension – loss of income due to an insured event at a customers premises. Similar to suppliers extension noted above.
Public liability insurance
Public liability insurance provides protection against your legal liability for injury to third parties and damage to their property including legal costs and expenses.
Defective workmanship/Sales indemnity
Protection against your legal liability following injury or damage by goods that you have sold, supplied, repaired, serviced, tested or delivered will be covered by defective workmanship/sales indemnity.
Protection for employees in the event of injury or illness while in the course of employment. Employers Liability also provides cover for trainees and personnel undergoing work experience.
The motor trade insurance policy provides cover for loss of business money at the premises due to an insured peril occurring or in transit to a bank. The money section also provides you or your employees with cover for assault or attempted assault whilst carrying money belonging to the business.
Engineering inspection covers statutory or non-statutory inspection of items of machinery and plant such as ramps, jacks and vehicle lifts.
Your traders insurance provides road risks cover for directors, partners and policyholders and employees who have the policyholders permission to drive their own vehicles and customer vehicles for business use – as long as the vehicles are registered in the business or policyholders name.
Any vehicles covered, can also be extended to provide social, domestic and pleasure use and as with personal car insurance, road risk insurance providers are able to offer third party cover, third party fire and theft cover and comprehensive cover.
Third party fire and theft provides the same cover as third party only cover, but also covers your vehicles if they are stolen or damaged by fire. A comprehensive road risks policy provides the same cover as third party fire and theft, but also covers your vehicles for accidental damage to your customer’s vehicles as well as your own.
A benefit to the motor trader under the road risk section of a motor trader insurance policy is that the policyholder will not have to arrange a private car policy due to the policyholders personal vehicles being insured under this section of the policy, subject to the vehicles being registered in the policyholders business name or personal name.
No claims bonus
A motor trade insurance policy will provide you with no claims bonus on the road risks section of your motor trade insurance cover. Some motor trade insurers will also look to agree to accept private car no claims bonus when arranging insurance for a policyholder or as a minimum offer an introductory discount.
This covers any customer vehicle held in your custody or control that is damaged or destroyed due to an insured peril occurring while driving the customer’s vehicle in the course of your business
This part of the policy covers any vehicle which is the insured’s property or for retail sale that is damaged or destroyed due to an insured peril occurring. In the unfortunate event that a vehicle is destroyed the insurer would settle on a trade value basis.
Equipment breakdown not only provides cover for breakdown, but explosion, collapse and operator error in respect of covered plant too. Covered plant includes boilers, lifts, air-conditioning, computers and office equipment.
Prevention of access
Prevention of access relates to any damage to property in the vicinity of the premises which hinders entry to the premises and results in a loss of income to the business.
An example of this would be a fire at a neighbouring premises that results in your staff and customers not being able to gain access to your premises due to the police or fire department sealing the road off.
Demonstration cover relates to customers test driving stock vehicles. Motor trade insurance providers can provide this on either an attended or unattended basis. Unattended demonstration has become a very important cover for motor trade customers, due to the requirement to social distance due to the Coronavirus pandemic.
It is a good idea to get legal protection to cover you for legal costs and expenses for criminal prosecutions, data protection breaches, jury service/court attendance, contract disputes and tenancy disputes and tax disputes wrongful arrest and property protection.
Motor legal expenses
Provides cover for Motor Legal costs and expenses for uninsured loss recovery and personal injury following a non-fault accident and motor prosecution defence.
Any driver cover
A motor trade insurance policy will also provide cover for any driver that has the policyholders permission to drive on the policy for business use and can be extended to social, domestic and pleasure use.
Goods in transit
Under the motor trade policy your property is often insured whilst in transit anywhere in Great Britain, Northern Ireland, the Channel Islands or the Isle of Man. It usually also provides cover for employees personal belongings, losses to sheets, ropes, tarpaulins and packing materials and damage to customers goods.
The motor trade policy can be extended to cover wrongful conversion. This provides cover if you purchase a vehicle from someone who is not the true owner of the vehicle.
Motor insurance database (MID)
The Motor Vehicles Compulsory Insurance Information Centre and Compensatory Regulations 2003 place a legal requirement for motor trade insurance policyholders to supply accurate and timely vehicle updates to the MID.
Failure to do so can result in fines of up to £5,000 and your vehicle being impounded. To make this process easier for motor trade policyholders, most UK insurance providers allow access to the Motor Insurance Database so motor trade policyholders can add and remove vehicles throughout the duration of the insurance policy.
Why should you choose Glowsure for motor trade insurance?
At Glowsure we have a reputation for providing motor trade insurance policies to businesses operating in the motor industry at a reasonable price.
We have access to a range of reputable motor trade insurance providers to enable us to compare motor trade insurance products that are able to offer quotations that offer a high level of cover at competitive premiums to enable you to save money but not compromise on policy cover.
We compare motor trade insurance covers provided by the motor trade insurance providers, to make sure that you receive the most competitive motor trade insurance quote. At Glowsure we look at your motor trade requirements to ensure that you are adequately insured.
At Glowsure we do not subcontract our claims service to third party companies so we will deal with any losses or claims on your behalf and provide you with a dedicated point of contact throughout the duration of your motor trade insurance policy. We can even deal with any policy adjustments that might be required.
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At Glowsure, we strive to ensure that motor traders have all their insurance needs met with friendly and superior service. We are proud to have established a business that puts customers front and centre, and if something is not right, we fix it.
Being a close team makes us agile and able to respond quickly to a client's needs. If you are needing motor trade insurance or, if you just have some questions you would like answered, please feel free to contact us today at 01730 239387 or fill out our contact form:Get a quote