Motor Trade Insurance

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  • One short form to complete, quotes from multiple brokers
  • All occupations covered from car traders to tyre fitters
  • Road risk and premises cover available
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Why use QuoteSearcher?

QuoteSearcher is here to help you avoid the difficulties of dealing with multiple brokers to try and find the best offer.

We partner with a wide range of specialist brokers who compete for your business, offering competitive and highly effective policies. We take some information from you via our simple online form, then you will be contacted directly to discuss your quote – it’s as simple as that!

Policy Features

Also known as Traders’ Insurance, businesses operating within the motor trade need comprehensive cover, as there are many risk factors associated in working with vehicles. The insurances fall into either Risk, Liability or Premises. Here are the most common features to look for in your policy to make sure you and your business stay covered.

Building and Contents

Cover the premises, equipment and stock in the event of damage by fire, flood or adverse weather

Road Risk

Protection against all manner of risks common to driving on the road

Liability Covers

Public, employers’ and product liabilities covered

Additional Drivers

Cover for employees using business or customer vehicles while on duty

Business Interruption Cover

Guaranteed revenue in the event business becomes inoperable due to any circumstances

Stock and Damage Cover

Protection against damage to vehicles kept on site

Motor Trade Risk Insurance

This is the minimal level of insurance legally required from a motor trader. However, it is up to them to decide whether to buy third party, third party fire & theft, or fully comprehensive coverage – as all 3 types meet the legal standard required.

As with normal insurance policies, third party will only cover damage to the vehicle of the third party involved in the accident, not the vehicle being driver by the trader, regardless of whether it is their own vehicle or a customer’s. Only fully comprehensive coverage provides this level of protection.

All motor traders who drive vehicles they do not own ought to have fully comprehensive insurance, whether they operate from a fixed business premises or from home.

mechanics changing car windscreen
couple is buying a car at dealership

Motor Trade Liability Insurance

If you are working in the motor trade, it is important to protect yourself and your business against any legal liability claims made against you by customers or members of the public. These include:

  • Public liability – protection against claims by members of the public
  • Employers’ liability – required by law if your business employees one or more people
  • Product liability – protection in the event your product causes injury or illness to a customer

A claim can be made for a variety of reasons, including poor quality workmanship or an accident involving a customer or a member of the public. They may be seeking compensation, or possible applicable medical expenses.

Motor Trade Premises Insurance

Motor trader premises insurance covers any equipment, buildings and their contents used by the trader and their business in the course of their work.

There is combined cover available that includes all of the above levels of coverage, which is fully comprehensive. Depending on your specific policy, your combined cover may also include some other features, such as:

  • Sales and service indemnity
  • Building and contents
  • Business interruption
  • Business stock

This is specifically designed for large motor traders with a garage or a showroom on the premises.

Factors affecting policy premium

  • Number of vehicles covered – someone who trades from home will normally be limited to the number of vehicles covered by their policy. Whereas someone who trades from a dedicated business premises may seek out a policy that covers unlimited vehicles as the number of vehicles in their care tends to fluctuate.
  • Vehicle coverage for secondary occupations – if you work in the motor trade but have a separate secondary occupation, you can opt to have an additional vehicle included on your policy.
  • Demonstration coverage – normally this is limited to third party policies, covering the vehicle when being driven for demonstration purposes only.
  • Special vehicle cover – standard vehicles up to a certain weight are covered, but vehicles which fall outside of the limit will need additional cover. This includes: classic cars, performance vehicles, and commercial vehicles.
mechanics repairing car

Types of Motor Traders

Your policy and its features will vary depending on which area of the industry you work in.

  • Service, repair and MOT garages
  • Crash and body repair
  • Commercial vehicle repairers
  • Mobile mechanics
  • Mechanics / traders working from home
  • Vehicle breakdown and recovery
  • Body shops
  • Vehicle delivery and collection agents
  • Commercial dealerships
  • Tyre fitting / sales
  • Windscreen fitters
  • MOT prep and testing
  • Car demos

Comparing Policy Features

Make a list of which policy features are relevant for you before comparing policies from different insurance companies. This way you can decide which delivers the best value for money for your specific needs.

Some good points of comparison:

  • the cost of third party vs. fully comprehensive insurance
  • what is excluded from your policy
  • the contents of their standard policy and what needs purchasing separately.
  • Excess amounts
  • No claims discount
  • Each of the variables mentioned in the previous paragraph

Save Money on your Policy

There are also several steps you can take to help reduce the price of your premium:

  • If you are a smaller business, try to avoid buying coverage for special vehicles unless it is absolutely necessary
  • Check to see if your personal, private no claims bonus can be transferred over to your motor trade policy
  • Minimise the number of named drivers on the policy, this will keep your premium down
  • Added/extra security measures, such as on-board dash cams.
  • Keep mileage as low as possible. This is easier for a local, small business.
  • Adding a private car to your policy might actually be more expensive than getting separate private car insurance.

Frequently Asked Questions About Motor Trade Insurance

    • Do I need Motor Trade Insurance?
      If you work in an industry which requires you work with vehicles you do not own, then most likely you do need it. 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.
    • What happens if I stop trading for a number of months?
      You will have to inform your insurer of this. Motor trade insurance is for those that are actively trading, you will need to submit evidence of this and so if you are to stop trading, you will have to cancel the policy, and then take out another one when you resume trading.
    • If one of my vehicles is written off, or stolen, will I receive the full value?
      If one of your vehicles that is covered by your motor trade insurance policy is written off, or stolen, then as a result of your motor trade insurance cover, you will be paid the trade value of the vehicle and no more.
    • Will I be able to add any other drivers on to the policy?
      Yes, however you must remember that a motor trade insurance policy is essentially a business policy and so the people added should be employed by your business, either as a business partner or an employee.
    • Do I need to hold a Full UK driving licence?
      Yes you do need to hold a Full UK driving licence, and most motor trade insurance companies will require that you must have obtained it at least 12 months ago.
    • Will I be covered if I purchase a high performance vehicle?
      With a high performance vehicle the level of danger and risk is raised. Therefore a lot of insurers have restrictions on policies with regards to high performance vehicles. In some cases they will not cover them at all. This is something you must discuss with your motor trade insurance provider before you commit to buying a high performance vehicle.
    • Will I be able to alter my policy before renewal?
      Most motor trade insurance providers will allow you to alter your policy before renewal, however, it would be a good idea to check before you make your purchase just in case you do decide, at some point in the future, to modify your policy in any particular way.
    • Will my personal vehicles be covered?
      If you have properly disclosed them at the policy inception then you should be covered. You will need to check with your motor trade insurance provider however that your vehicle does not fall into a restricted or unacceptable vehicle area. You will need to declare any vehicles in your possession for a certain amount of time to the Motor Insurance Database.
    • Will I need to inform my broker each time I acquire a new vehicle?
      You need to keep the Motor Insurance Database up to date with any vehicles you own, or are likely to be in your custody for a certain length of time. If you wish to insure the new vehicle on the same policy you will need to inform your motor trade insurance broker.
    • How much does Motor Trade Insurance cost?
      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.

After searching for hours on the internet I finally came across QuoteSearcher who's partners provided me with excellent quotes far better than I had received from anyone else.

Neil Heron - Virginia Water, Surrey

I was delighted with the quotes I received from QuoteSearcher. I ended up making a saving of £300 on my insurance!

Nick Baker - Chorley, Lancashire

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