How to get motor trade insurance
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Obtaining Motor Trade insurance can be daunting for individuals and businesses at times, due to the various covers that are available under a motor traders policy. Essentially if you are operating a business selling or servicing vehicles then a motor traders policy would be the correct insurance product.

A motor trade policy can be Road Risks only which is suited to businesses working mobile, from home or part-time, and Motor Traders Combined insurance which is for businesses operating from a business premises.

To obtain a motor traders policy, insurers would usually request the following information:

  • The vehicles that are registered, are in the business name or in the name of any director, partner or proprietor of the business.
  • Information on the drivers that need to be insured. Insurers will usually offer quotes based on Any Driver excluding drivers under 21, 25 or under 30 and can extend cover to include Social, Domestic and Pleasure use.
  • Any losses or claims in the last 5 years.
  • Any convictions.
  • Business trade undertaken .
  • Are you working from home, mobile or working from a business premises.
  • Security at your premises.
  • Sum insured required for stock, contents, portable hand tools, customers vehicles, own vehicles, buildings and all other contents.
  • Number of employees and annual payroll.
  • Annual Turnover.
  • Level of vehicle cover required – Comprehensive, Third Party Fire and Theft, or Third Party only.

How do you qualify for motor trade insurance?

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.

Is motor trade insurance mandatory?

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.

How do you get motor trade insurance?

Motor trade insurers 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.

At Glowsure we have a reputation for providing motor trade insurance policies to businesses operating in the motor industry at a reasonable price.

What sort of businesses does 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

What does a motor trade policy cover?

There are two types of Motor Traders insurance:

  1. Road Risks
  2. Motor Traders Combined.

Road Risks is designed to cover businesses that do not have a business premises and provide a mobile business operation.

Examples of Road Risks businesses are:

  • Mobile mechanics
  • Used vehicle sales
  • Valeters
  • Motor Traders working from home
  • Part-Time businesses

Motor Trade Road Risks can also be arranged with Public Liability insurance. This would protect your business in the event of a claim being made against you for damage to third party property or injury to a third party.

Motor Traders Combined insurance is designed for Motor Trade Businesses that are operating from a business premises and typically conduct the following motor trade activities:

  • Vehicle sales
  • Servicing and repair of vehicles
  • Paint Sprayers
  • Car Dealers
  • Auto Electricians
  • Classic Car Restorers

Motor Traders Combined policies are able to provide motor trade businesses with the following cover under one policy:

Material damage

Provides cover for buildings, machinery, plant, equipment and business stock.

Portable hand tools and employees tools

Provides cover for your own and employees tools at the premises and cover can be extended to cover hand tools away from the business premises.

Employers Liability

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.

Products and Public Liability Insurance and Service Indemnity

Public liability insurance provides protection against your legal liability for injury to third parties and damage to their property including legal costs and expenses.

Business Interruption

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.

Commercial Legal Protection

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 Protection

Provides cover for motor legal costs and expenses for uninsured loss recovery and personal injury following a non-fault accident and motor prosecution defence.

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.

Own vehicles

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.

Customers vehicles

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.

Road Risks

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.

Demonstration cover

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.

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.

At Glowsure we can talk you through the different insurance policies and recommend those most relevant to your motor trade business.

FAQs

Can anyone get motor traders insurance?

To qualify for a motor trade insurance quote, you will need to be able to prove that you can 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.

What level of motor trade insurance cover do I need?

If you are a motor trader operating a mobile business, working from or have a part-time business a Motor Trade Road Risks policy along with Public and Products Liability insurance would be suitable for your business.

If you are a motor trader operating from a business premises then a Motor Traders Combined insurance policy would suit your businesses demands and needs.

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 else can motor trade insurance cover?

  • Engineering inspection: Engineering inspection covers statutory or non-statutory inspection of items of machinery and plant such as ramps, jacks and vehicle lifts.
  • Equipment breakdown: 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.
  • Wrongful conversion: 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.

What is a Road Risks policy?

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.

Looking for motor trade insurance quotes?

If you are looking to obtain quotes for your motor trade business please contact Glowsure and we will be more than happy to conduct a review of your business and build a motor trade insurance policy that meets your businesses demands and needs.

About Glowsure 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, allowing us to compare motor trade insurance products on your behalf. We find quotations that offer a high level of cover at competitive premiums – enabling you to save money without having to compromise on your policy cover.

We compare motor trade insurance covers provided by the top insurance suppliers, to make sure that you receive the most competitive quote. At Glowsure we take care to look at your motor trade requirements to ensure that you are adequately insured.

Why choose Glowsure for your motor trade insurance?

At Glowsure we do not subcontract our claims service to third party companies. Instead we prefer to deal directly with you on any losses or claims incurred.

We promise to provide you with a dedicated point of contact throughout the duration of your motor trade insurance policy and can even deal with any policy adjustments that might be required.

If you are looking for a comprehensive policy, then contact Glowsure, motor trade insurance specialists, for more information and advice.

Jon Youlden
Jon Youlden
Jon is an experienced member of the Glowsure team who specialises in areas of motor trade insurance and cyber insurance among others.
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