Do I need motor trade insurance?

If you run a business that requires you to drive or hold on to customers vehicles then you are legally required to at least have a third party motor trade policy. Some of the businesses that will need a motor trade policy are;

• Breakers yard
• Repossession agent
• Vehicle assessor
• Vehicle delivery
• Mechanical repairs
• Valeting
• Exhaust and tyre fitter
• Buying and selling vehicles

Why does motor trade road risk insurance cost more than my normal car insurance?

This type of policy may cost more, but it does cover you for more, so you are getting your money's worth. Essentially having a motor trade policy means you will be covered, rather than an individual vehicle. You will have the freedom of being able to drive any vehicle that is connected to your motor trade business. The risk is greater as potentially more vehicles are being covered at the same time. Especially if you have any named drivers on your policy, as this means you could have multiple vehicles being driven on the roads at the same time.

Motor Trade Road Risk Insurance Add-ons

As well as having cover for road risks for your motor trade business there are some extensions to your cover available. Depending on what exactly you do in the motor trade could determine whether you would need some of these add ons. You can purchase a Motor trade combined policy which would include public liability and employers liability insurance.

Demonstration cover could be ideal if your business is buying and selling vehicles. Having this in place would mean you care covered for potential customers taking a test drive in one of your cars, as long as you are in the car with them of course. Considering that most people would not buy a car without test driving it, having demonstration cover in place could be beneficial to your business.