What Is Motor Trade Insurance?

Motor trade insurance is a policy that’s taken out by someone who runs a business involving vehicles. Policies can provide cover for businesses that deal with both their own and any customer’s vehicles that they take into their ‘care, custody and control’.

Given that motor trade insurance can cover such a wide range of businesses, every policy must be specifically tailored to each individual or firm. Whether you are a motor trader, motor mechanic, or breakdown technician we can help you find cover in just a few minutes.

To complete a quick quote all we need is:

· Your contact information
· Details about your motor trade business
· Type of policy you're looking for

You'll then receive a call from our team in minutes who can provide you with our most competitive quote from our panel of insurers. You could save up to 50% off the cost of your existing premium.

Why Choose Tradex As Your Trade Insurance Broker?

• Quotes for motor trade businesses of all sizes
• Flexibility to choose between Road Risk Insurance only or Combined Motor Trade Insurance
• Access your online quote in three simple steps
• Policies generated by our team of motor trade specialists
• A friendly follow-up call from our team in minutes with our most competitive quote that could save you up to 50% off the cost of your existing premium.
• Over 25 years of experience handling unusual risks
  

Who Needs Motor Traders Insurance?

Our coverage ranges from scrap, salvage and vehicle dismantlers to full and part-time motor traders with road risk or stock of vehicles at trade premises. Just some of the occupations that Tradex specialise in covering are as follows:

If you run a business in the motor trade then you are legally required to have a basic level of motor trade insurance. Without it, you are breaking the law. Regardless of whether you work full-time or part-time or are self-employed or a contractor, it is essential you have cover to protect against any vehicles you are responsible for.

The type of motor trade insurance you require depends on the area of the motor trade you operate in. For example, if you have vehicles under your care, custody, and control then you will need a motor trade insurance policy that gives you cover for customer’s vehicles. If you work in car sales and demonstrate, collect, and deliver vehicles, the type of cover you would differ.

It is also common that motor traders may operate in more than one area and require a policy that covers them for all of their business activities. At Tradex, we have many years of experience in dealing with motor traders and finding policies that match their exact requirements.

Importantly, to qualify for a motor trade insurance policy, you must be able to prove that you are running a genuine business that generates an income. Motor trade insurance cannot be used simply as a means to get cover for private individuals to drive multiple vehicles.

What Type Of Motor Trades Insurance Policies Are Available? 

Minder Policy

For businesses dealing with customers’ vehicles including Mechanical Repairer Insurance, Valeting Insurance , Repossession Agent Insurance or Van trader insurance. 

Trader Policies 

For businesses with your own vehicles including Car Dealer at Premises Insurance or Commercial Vehicle Importer & Exporter Insurance

Enthusiast Policies

For part-time traders including Car Dealer at Home Insurance, The Restorer & Collector Insurance or Part-time Motor Trade Insurance.

What Does Motor Trader Insurance Cover?

Just like any other type of insurance, the cover provided by each motor trade insurance policy will differ depending on the particular risks you face. Given the diverse range of businesses in the motor trade, the cover and costs can vary enormously. However, it will typically include all or some of the following:

Road risks

A road risks policy allows you to drive your own vehicles as well as those you don't but are using to carry out your motor trade activity, whatever that may be. If your business doesn’t require vehicles to be driven on public roads then you could consider parts only cover.

Parts only cover

Usually, third party is the most basic level of motor trade insurance cover available, but depending on the nature of your business, you may also have the option to choose ‘parts only’ cover. This does not provide legal protection when taking customers’ vehicles out on the road.

Combined motor trade insurance

This type of policy provides cover for road risks as well as equipment and even your premises. It may be cheaper to take out combined motor trade insurance rather than several separate policies.

Employer’s liability

This cover is a legal requirement for any business that employs one or more members of staff, regardless of whether they’re driving vehicles or not, and can be added to your standard motor trade insurance policy.

Public liability insurance

This is another type of cover that can be included as part of a single motor trade insurance policy. This will protect you and your employees against claims made by members of the public.

Product liability

If you fit a part to a vehicle that turns out to be defective, this type of cover will protect you against any claims that arise.

Material damage

This can provide cover for damage done to any stock vehicles or equipment you own on your business premises, such as unsold vehicles you own as a car salesman.

Extra drivers

If your employees drive customers’ cars then you’ll need to decide between an ‘any driver’ policy or adding a number of named employees as extra drivers. In many cases, the latter will be cheaper.

Vehicle types

You must make sure your insurance covers you and your staff to drive the necessary vehicle types, whether it’s cars, vans, or HGVs.

What Level Of Cover Do I Need?

When searching for insurance for motor trade you will have to choose which level of road risk cover suits your requirements. As with personal car insurance, there are three levels of cover to choose from third party, third party fire and theft, and comprehensive.

Third-party

Legally, this is the minimum level of coverage you must have to drive on public roads. This will cover you whilst driving vehicles, whether they are your customers or your own, for damage, loss, or injury that you cause to third parties. This is the least expensive level of cover but also the most basic.

Third-party fire and theft

This provides all of the cover of Third Party but also protects you against damage to vehicles covered by your policy occurring as a result of theft or fire.

Comprehensive cover

As well as the cover included above, a comprehensive road risks policy will also cover you for any accidental damage caused to any of your own vehicles but also any customers’ vehicles under your care, custody, or control. If you have an accident while driving a customer’s vehicle during business use, the insurer would meet the cost of the repairs (less the excess)

How To Apply For Motor Trade Insurance?

Finding the right insurance for motor trade can be a complicated process and therefore we do everything we can to streamline this process for you. With our team of motor trade insurance specialists and a simple online quote system, we can get you covered, fast!

Over the years, Tradex Insurance Services has built up a wide portfolio of motor trade clients and we pride ourselves on being able to offer flexible terms and accommodate unusual risks. There isn’t much we won’t look at quoting, and in fact, we were one of the first brokers to consider the market which was previously thought of as “more trouble than it’s worth”.

From large dealerships to mobile mechanics, whatever your occupation within the motor trade, we’ll do our best to find cover that suits your needs