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 users to choose from, so it’s important to know exactly what your business requirements are by law.
When a vehicle is given over to a person in the motor trade for work, the individual’s personal car insurance is no longer valid, as the vehicle is under the care, custody or control (CCC) of the motor trader.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 motor traders can specify on their cheap motor trade insurance policy, including risks, liability and premises insurance. Thankfully, one policy can cover all vehicles the trader drives or supervises.
Motor trade risk insurance is generally seen as the minimal level of insurance motor traders can choose. Similar to general car insurance, traders can choose between third party, fire and theft, or comprehensive.
Motor trade liability insurance protects the motor trader from potential liability claims made by the trader’s customer. Cover can include compensation and medical expenses, and could be a legal requirement, depending on the trader’s business.
Motor trade premises insurance covers the trader’s buildings, contents and tools and equipment. Whereas a combined cover policy can include all three of the above, plus optional extras, including sales and service indemnity, business stock and interruption, and employer liability. Additionally to this, traders can specify the number of vehicles covered (insurance may be cheaper for smaller businesses that just need to insure one vehicle), public liability, special vehicle cover (classic cars, for example), vehicles for secondary occupations, and demonstration coverage.