Designed for both those self-employed and business owners in the motor industry, motor trade insurance often covers a great deal more than general car insurance. There are also a wide range of options for motor trade businesses to choose from, so it’s important to know exactly what your business requirements are by law. If you are unsure, you can get advice from an insurance broker during your quote.
When a vehicle is given over to a person in the motor trade for work, the individual’s personal car insurance is no longer valid, as the vehicle is under the care, custody or control (CCC) of the motor trader. Therefore, the motor trader must ensure the vehicle under their care, custody or control is fully covered by their own motor trade insurance.
There are plenty of optional extras and varying levels of cover motor traders can specify on their motor trade insurance policy, including risks, liability and premises insurance. Thankfully, one policy can cover all vehicles the trader drives or supervises.
Unlike more general insurance policies, motor trade cover is tailor made to suit individual companies. Therefore it is important to assess what kinds of risks your company will need cover for; mechanics and car valeting companies will both need motor trade insurance but both will require different cover. When you compare quotes you will be able to seek advice from motor trade insurance specialists who can guide you through arranging the right insurance policy for your particular requirements.
Some of the most common covers included in a policy are:
Road Risk – for businesses that are required to drive their customer’s vehicles on public roads; whether they are delivering vehicles that have been sold or leased or are required to take vehicles for a test drive when they are under repair. Road risk is typically considered the minimum level of insurance that a business in the motor trade will require and is often used by businesses operating from home or small operations.
Combined motor trade insurance – This policy combines road risk and material damage cover as well as a range of optional covers to ensure that if you are required to work on vehicles off the road and drive them on public roads you are covered for any eventuality. Often cheaper than taking out separate policies.
Public Liability Insurance – this covers you and your employees from any claims made by a member of the public, including your customers.
Material Damage Cover – insures all of your vehicles and equipment, even when not in use.
Employers liability insurance – a form of cover which protects the company in the vent of a claim from one of its employees.
Vehicle types – if your employees drive a number of different vehicle types they will need specialised cover to protect them. This policy can be applied to all employees at a higher cost or limited to a select few employees in order to save money.
Do I need motor trade insurance?
We have already mentioned a number of companies that require motor trade insurance, including mechanics and car valet services, but the policy is essential for any business where their own vehicles or customer vehicles fall under the ‘care, custody or control’ of any of their staff.