Buyer’s Guide to Motor Trade Insurance
If you are on the hunt for a good motor trade insurance deal, then probably there are so many details that you need to know before even trying to compare policies from different providers. Our helpful guide below is designed to give all the basic information about motor trade insurance.
What Is It?
A motor trade insurance policy is insurance cover for those who are in business with selling, buying, repairing or generally doing anything related to cars. It is suitable for big motor traders as well as for small ones or even part-time car dealers. Consider that motor trade insurance is legal requirement not only for companies. If you are self employed and in your work is involved responsibility to other people's car, you should have such cover too.
The three main features of the standard motor trade insurance policy are:
• Road risks: motor trade businesses are required to have road risks cover by law. It is a legal requirement without which a motor trade company is not allowed to run legally. It covers all vehicles associated with the business while travelling on public roads.
• Public liability servicing & sales of goods: covers business property against third-party damage and employees against injury.
• Material damage: covers all business vehicles and premises in case of accidental damages.
Type of Motor Trade Insurance
• Third Party Only: this type of motor trade insurance policy is also known as Third Party Road Risks Policy. This is the most basic level of motor trade insurance policy and it is a legal requirement for all motor traders. The law requires all motor trades to have this type of cover if they:
a) provide vehicle repair services;
b) drive own or customers’ vehicles on public roads;
c) buys, sells or exchanges cars as a business;
d) operates as a fitter, mechanic, valeter, etc;
e) restores and repairs vintage and classic cars;
f) runs a MOT garage.
• Third Party Fire and Theft Policy: This motor trade insurance policy includes the above third party coverage and it also covers against damages caused to the motor trader due to fire or theft of vehicles connected to the trade.
• Comprehensive Insurance Policy: This type of policy differs substantially among providers but a packaged motor trade insurance policy will usually cover all the risks associated with the business of a motor trade company.
• Liability Policy: This type of motor trade insurance policy covers three aspects:
1) Employers liability;
2) Pubic liability and
3) Product, Sales and Service Indemnity (“Defective Workmanship”). This type of cover is suitable for motor traders who:
a) Employ people;
b) Repair or service cars;
c) Sell, supply and fit parts;
d) Need to invite people from the public within their business premises while rendering services to them.
• Combined Policy: covers all business properties and liabilities.
Where to Buy?
We would advise getting at least 3 quotes. Start with specialist motor trade insurance websites such as iQuoteMotorTradeInsurance and PitStopMotorTrade.
You should also try out a comparison engine like QuoteZone, QuoteSearcher and Quotiva to name but a few.
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