Motor Trade Insurance: Essential Cover for Vehicle-Related Businesses

WHICH KINDS OF INSURANCE POLICIES ARE OFFERED FOR THE MOTOR TRADE INDUSTRY?

At Reliant Risk Management insurance brokers, we offer a range of options to cover the needs of the motor trade industry. Our cover extends to encompass different sectors, including scrap, salvage, and vehicle dismantlers, as well as both full and part-time motor traders. Whether you operate from trade premises or require road risk cover, we have policies to meet your specific requirements. We offer protection for your vehicle stock and comprehensive road risk.

IS MOTOR TRADE INSURANCE NECESSARY FOR ME?

If you operate in the motor trade industry, it is important to purchase the correct motor trade insurance that complies with legal requirements. This applies to both limited companies and sole traders who bear responsibility for others’ vehicles.

The cover depends on the specific area of the motor trade in which you operate. For instance, if you are entrusted with the care, custody, and control of vehicles such as valeter or mechanic. It is crucial to obtain a motor trade insurance policy that offers adequate protection for customer vehicles. However, if you are involved in car sales, along with vehicle demonstration, collection, and delivery, the insurance cover may differ.

Furthermore, it is common for motor traders to engage in multiple areas of the industry simultaneously, therefore requiring a comprehensive policy that safeguards all their business activities. At Reliant Risk Management Insurance, we have extensive experience in meeting  the unique requirements of motor traders and arranging cover to match their needs.

WHAT IS COVERED BY MOTOR TRADE INSURANCE?

Just like any other type of insurance, the cover can vary depending on the specific risks involved. Given the diverse range of businesses in the motor trade industry, the extent of cover and associated costs can greatly differ. However, typical motor trade insurance policies include the following key elements:

• Road risks: cover to drive own vehicles and third party/customer vehicles that you do not own, specifically for carrying out your motor trade activities. Should your business not require vehicles to be driven on public roads, you may consider opting for parts only cover.

• Parts only cover: third party cover is usually the most basic level of motor trade insurance available. However, depending on the nature of your business, you may also have the option to choose ‘parts only’ cover. It is important to note that this does not provide legal protection when driving customer vehicles.
• Combined motor trade insurance: provides comprehensive cover for road risks, tools, machinery and even premises.

• Employer’s liability: legal requirement for any business with employees. It can be added to your standard motor trade insurance policy.
• Public liability: protects you and your employees against claims made by members of the public and customers should they sustain injury or loss.
• Product liability: protect you against claims resulting from your products. 
• Material Damage: protection for damage to any stock vehicles or equipment you own, such as unsold vehicles in your possession.
• Extra drivers: if your employees drive customer cars, you have the choice between an ‘any driver’ policy or adding named employees as extra drivers. In many cases, the latter option proves to be more cost-effective.
• Vehicle types: covers you and your staff to drive the necessary vehicle types, whether they are cars, vans, or HGVs.