The moment an owner leaves their car with a trader, they are trusting that trader to take care of their vehicle. It also means that the car is no longer covered by the owner’s insurance policy, meaning responsibility and also liability now lie with the trader. Car trader insurance is a requirement for anyone working in the car trading industry, as it protects the trader, the customer and the customer’s car in the event of an accident or unexpected incident .
As a car trader, one policy will be enough to provide cover for all the cars in your care.
Policies are usually split between risk, liability and premises.
This is the minimal level of insurance legally required from a car trader.
Like all vehicle insurance policies, there are 3 levels of cover available:
Third party only
Third party, fire and theft
All three meet the legal standard required, however any car trader who is driving a vehicle which they do not own should have a comprehensive policy in place.
Car traders often have a lot of valuable tools and equipment on their business premises. Car trader premises insurance covers equipment, buildings and their contents which are used by car traders in the course of their work. There is comprehensive combined cover available, which may also include:
Service and sales indemnity
What you require from your policy will vary depending on what area of the car trade industry you operate in, however the majority of these elements are optional so you can create a bespoke policy suited to your specific needs. Some of the variables to consider include:
Number of vehicles covered
Vehicle coverage for secondary occupations
Special vehicle cover
If you are working in the car trade, it is vital you protect yourself and your business against compensation claims made by customer or members of the public. Liability claims can be costly and time consuming, and having adequate insurance against a claim ensures your business keeps operating.
Additional Policy Features
Different features apply to certain trades, so here are some of the most common ones to consider:
Building and contents cover
Premises cover including yards
Cover for businesses operating from public or private carparks, supermarkets, garages or sites leased by the business
Tools and equipment, including high value plan/machinery
Testing vehicle attachments, tools of trade cover
Any speciality equipment
Marine cover for any stock in transit
Vehicles in transit / delivery by transporter, trailer or on trade plates
Road risk cover for customer, business and employee/family vehicles
If you are unsure whether you need car trader insurance then just ask yourself a simple question: do I work in an industry which requires me to work with vehicles that I do not own myself? If the answer is yes then you probably need car trader insurance. Car salesmen, mechanics and even valets should all protect themselves against any damages to the cars they work with; especially if you are working with them on a day to day basis.
Naturally, the answer to this question depends on a number of factors, most of which are concerned about the nature of your business. For example, if you are a second hand car dealer with a small private premise your insurance premiums will probably be lower than that of a car dealer who specialises in selling luxury vehicles. However, your insurance will also be based upon you as a person, so if you have claimed numerous times on your private car in the past few years you may pose more of a risk. Either way we can help you find the best deal, even if you do have previous claims.
Obviously, you want to get the right type of car trader insurance, and the last thing we want for any of our customers is to invest in a policy that doesn't help them when they need it the most. This is one of the reasons we have teamed up with a number of great value car trader insurance brokers who offer a wide variety of services, such as indemnity cover, legal services, flexible payment options and more! So if you are looking for the best quote, let us know everything you want and we will do our best to provide it!
Let us find the right car trader insurance for you...