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If you are working in the motor trade then you need motor trade insurance, with the right cover. And that means finding the right quotes from the right people. It’s not easy to find the perfect motor trade insurance policy that fits all the unique aspects of your business – but we’re here to help!
We’ll point you in the direction of insurance providers who’ll ensure that you get the right cover for your traders’ policy. This leaves you to get on with running your business, without having to worry about what needs to be covered.
With just a few clicks, you can get suitable insurance quotes for your motor trade business from a panel of providers. You’ll find:
- Specialist Motor Trade Insurance Providers
- Comparable Motor Trader Cover Quote Prices
- Instant Policy Documentation
- Insurance For Full & Part-Time Motor Traders
- Multiple Traders Insurance Cover Types
Cover types are absolutely essential for your motor trade insurance policy. The panel of insurance providers can offer you a wide selection of numerous cover types that include:
- Mobile Mechanics Cover
- Traders Working From Home Cover
- Cover For Road Risk & Combined Premises
- Public & Employers Liability Cover
Simply click below now to find the insurance that’s the right fit your motor trade business!
A Guide to Motor Trade Insurance
If you’re exploring the world of motor trade insurance, things can get a tad confusing. But never fear, because we can guide you through the different types of cover and insurance options that you need. We’ll even tell you how to save money on your insurance, because we understand that every penny you save is a little extra profit for your pockets!
Before we get to that though, we need to cover the basics.
What is Motor Trade Insurance?
It’s not always an easy one to answer. But put simply, motor trade insurance is cover for any business that is in the care, custody, or control of a customer’s vehicle, or is involved in the sale of vehicles to a customer.
This can include the following business types:
If your business falls into one of the above categories, then you’ll need motor trade insurance.
What Is Covered Under Your Traders’ Insurance Policy?
Motor trade insurance is there to cover you, and your staff, to look after all the vehicles that are under the care of your business. You can put specific drivers on your policy, or use ‘any driver’ options to cover anyone in your business to drive without being specifically named on the policy. It’s very important to note though, that even if you have ‘any driver’ cover, you may still need to notify an insurer of certain named drivers. Please check with your insurance provider directly, or read your policy documentation, to know when this is necessary.
With a combined motor trade insurance policy, you can cover every aspect of your business, from your vehicles and premises to tools and cash.
Your traders’ insurance policy can also cover you for more than just business needs. You can get cover for social, domestic and pleasure purposes too. But it’s important to understand that traders’ insurance is not an ‘any vehicle’ insurance policy for all of your personal vehicles. The vehicles you own outside of your business should still have their own private motor insurance. Motor trade insurance covers your business’ needs, and it shouldn’t be used as a way to get cover for vehicle uses outside of that. This is specialist insurance for genuine businesses working within the motor trade industry.
It’s also worth noting that trade insurance is different from other business insurance policies. CleanGreenCars provides quotes from a panel of insurers for other business insurance such as: Fleet Insurance, Taxi Insurance, Truck Insurance and Courier Insurance.
Your Options In Motor Trade Insurance
This is the meat and potatoes of your motor trade insurance policy. You need to know how your policy covers your business, and the choices you have to extend your insurance coverage. Breaking it down, these are the options available for you:
- Parts Only – This cover will offer you insurance only for parts and will not cover any of your vehicles on the road.
- Road Risks – This is the minimum level cover you’ll need in a traders’ insurance policy. It provides cover for you and your staff to be able to work on and/or transport customer vehicles as required. Just like your private motor insurance, you can choose from three levels of cover:
- Third party only (TPO) – which covers only the minimum of third party damage.
- Third party, fire and theft (TPFT) – which is TPO cover but with fire, theft, and criminal damage included.
- Comprehensive – which ensures cover for all the above, as well as personal effects cover, windscreen damage, medical costs, and accidental damage.
- Combined Motor Trade Insurance – Combined traders’ insurance is true peace of mind. It’s a type of cover that enables you to protect every part of your business. So, as well as covering your company and customer vehicles, it also covers your premises, tools, stock and cash as well.
- Part-Time Motor Trade Insurance – If you work in the motor trade on a part-time basis, then you can get a flexible policy that covers you only for the period of time that you need.
How to Reduce Your Motor Trade Insurance Premiums
Now, for the juicy part. You want to know how to save yourself some extra cash when taking out a traders’ insurance policy. Well, you’re already on the right website, so you’ve made a good start!
But as well as using CleanGreenCars, there are other ways to help save you money:
- Hire Experienced Safe Drivers – You cannot under-estimate the importance of having experienced employees in your business. Drivers without penalty points are one of the best ways to reduce the cost of a motor trade insurance policy, as insurance providers could increase your premium if you have younger drivers, or drivers without a clean licence.
- Secure Your Premises – You’d be amazed at the amount of businesses that are slack when it comes to their security. With your premises safe and secure, this will help to reduce the risk of theft and vandalism. With a nicely secured site, you’ll likely see lower insurance premiums too. It’s a win-win!
- Increased Excesses – A higher excess can reduce the cost of your premium. Try upping your standard excess with a voluntary excess, and see if you reduce your premium.
- Pay Annually, Not Monthly – Annual policies are the cheapest way to pay for your policy. If you can afford to pay for your insurance in one go, try and do so, as insurers will likely discount your premium compared to paying monthly.
- Be Aware Of Add-Ons – Some might be unnecessary for your traders’ insurance needs, check before you buy!
- Shop Around At Renewal – We know how easy it is to let an annual policy auto-renewal when it reaches the end of its life. But this convenience comes at a cost! Insurance premiums are likely to increase at renewal stage, so check your renewal quote and shop around to see if you can find cheaper prices online.
- Standard Vehicle Cover – Some ‘any vehicle’ policies will cover you for higher-risk vehicles such as classic cars, high-net worth vehicles, or trucks. Make sure if you only need standard vehicles covered, you aren’t paying any extra for cover you don’t need!
- Modifications – Any vehicle modification could increase your premium. Ask yourself: is this mod something that I need for my vehicle? Because without it, you could be saving money on your insurance.
With a motor trade insurance policy, you can cover the vehicles you work on as well as your company vehicles.
- Motor trade insurance is for traders only.
- If you are in any business where you are in the care, custody or control of a customer’s vehicle, you need traders’ insurance.
- If your business sells vehicles, then you also need a motor trade insurance policy.
- You can get any driver cover, as well as named driver policies.
- All of your vehicles can be covered, but always have your own insurance for personal use.
- There are many cover types for traders’ insurance – make sure you get the one that suits your needs.
- Always be on the look out for ways to reduce premiums through safe drivers and avoiding unnecessary extras on your policy.
The term Motor Trade Insurance or traders insurance is the name given to the category of insurance policy the is recommended for those individuals who work in the motor industry. This includes, but is not limited to:
- Traders – anyone who buys or sells vehicles for a profit
- Mechanics – both mobile and garage-based mechanics who fix vehicles
- Valeters – those who work cleaning vehicles
- Car Jockeys – individuals who are employed in moving vehicles from one place to another
- Vehicle Recovery Agents – those who recover broken down vehicles
Levels of Motor Trade Insurance Cover
When it comes to Motor Trade Insurance there are two different types that are available:
- Road Risk Only
- Combined cover
A policy that covers Road Risk only is marketed at those people who have a home-based business and any smaller businesses who have nominal assets. This category might also include any individuals who work as mobile mechanics or cars salespersons who either run a business that is mobile or operates from their own drive.
An insurance policy for Road Risk is one that covers the insured individual to drive any vehicle that is in their possession; this might be an item from their stock or one that they own personally. These vehicles are either for the purposes of motor trade purposes or personal use. This type of insurance also covers any vehicles that belong to customers, where you might be required to drive them in order to perform your work.
A Combined motor insurance policy is one that will cover several other things such as your tools, equipment, money and even your buildings and contents. Trade insurance policies, just like those for standard car insurance offer the buyer three levels of cover – Third Party Only, Third Party with Fire and Thefts and Comprehensive cover. A different level of protection is afforded the policy owner with each level of cover.
Motor Traders are also able to avail themselves of a number of other Liability products:
Employers’ Liability – Any business with Employees needs to take out Employers’ Liability by law, it covers them for any illness or personal injuries that result from doing work for a client.
Public Liability – This covers a Motor Trader for any in the event of a member of the public making a claim for a personal injury or damage to their property.
Product Liability – Sometimes referred to as Sales and Service Indemnity, this covers any parts that you might use to carry out work on a client’s vehicle in case of faults.
What is a Motor Trade Insurance policy, and do I need one?
The key to getting the best out of your Motor Trade Insurance policy is to make sure that you understand everything that it entails, and it doesn’t matter if this is your first policy or your 30th.
Motor Trade and Private Car insurance are two very different things. If you will only be driving your own vehicle of someone else’s, whether for business or private use, then a regular car insurance policy is sufficient. On the other hand, a Trade policy is designed for those who are in the trade, whether they own multiple cars or work with customers cars. This type of insurance is more practical when working with a high volume of vehicles on a frequently changing basis – it cuts out the need to continually update an insurance policy.
Levels of Cover
The two different types of Motor Trade insurance that are available offer three different basic levels of cover.
Third Party Only (TPO)
This level of cover is the most basic and is comparable to that which you can get for a private car. It only offers you third party cover if you are deemed to be at fault for a crash you are involved in. The legal minimum policy that you can take out as a motor trader is a Road Risk Third Party Only policy.
Third Party, Fire and Theft (TPFT)
The benefits of this policy add fire damage as a result of an accident or theft to the vehicle cover in addition to the benefits of a TPO policy. This would be of course unless you were at fault for the theft.
Offering all the benefits of a Third Party, Fire and Theft policy, Comprehensive insurance also covers you for any damaged, whether they are your fault or not, that occur to the vehicle. The type of insurance that you need will depend entirely on the kind of business you run. You may want to consider a Road Risk policy with some added cover such as employers’ liability insurance if you have any employees. Product liability cover is an important consideration for mobile mechanics who work from home, as it will cover them should any parts they use be faulty or cause damage to a customer’s car.
If you have premises from which you operate, and where your customers visit, then Public Liability is a wise addition to your policy. For motor traders who have defined business premises a combined policy, which covers any tools and equipment, vehicles in stock and any other business assets is vital.
For a single individual working from a home base, the insurance policy required is relatively simple. However, as soon as other elements such as employees and business premises are added then a more complex Motor Trade insurance policy is required. It is essential to make sure that no matter what scenario you are faced with you are insured.
Who is Motor Trade Insurance for?
In short, anyone who is involved in the motor trade in any capacity from buying and selling to mending or cleaning requires the appropriate level of Motor Trade insurance to protect both themselves and their customer in the event of an issue. It doesn’t matter what sort of premises you have or what hours you work any individual who works in any of these jobs, listed below, should ensure they have cover in place.
It is accepted that “Motor Trade” is a somewhat broad term that covers rather a lot however anyone working with vehicles in some capacity may require a policy.
Aimed at those who buy and sell vehicles in order to make a profit, whether they work full or part-time, vehicle sales insurance policies are a must. Policies can be tailored to suit those who work from home or have business premises and can also include cover for things like vehicles in stock, goods-in-transit and in some cases buildings and contents, money and tools.
A mechanic needs a policy that covers them for such things as the work they carry out and driving customers vehicles (which they may need to do for diagnostic purposes). It also needs to cover any tools and equipment that they require in order to carry out their job. Some mechanics sell parts as well as fitting them and will benefit from Sales and Service Liability which will protect them should anything go wrong with parts they fit or work they complete.
Specific Body Shop insurance can cover machinery, tools and equipment – it can be tailored to what a business has and the kind of premises they occupy. It can also cover any vehicles, including courtesy cars. Those businesses that have employees should add employers’ liability to the cover they chose and may want to consider both Public Liability and Sales and Service Indemnity, as appropriate, to cover and work that is carried out.
Recovery of Vehicles
Any insurance policy taken out by an individual working in the business of vehicle recovery, whether they run their own business or are employed as a sub-contractor, needs to cover the recovery vehicles and any vehicles they need to recover. Tools and equipment, in addition to premises, may also need to be covered. Again, if there are any employees, then Employers’ Liability is a must to cover those involved in the actual vehicle recovery as well as any office-based staff.
Tyre fitters require a policy that will cover them for moving customers cars, it should also cover them for any work that they do and the parts that they use. If you have lifting equipment and vehicle ramps, then you may also want to cover them and any individuals you employ. There is appropriate cover available for tyre fitters who work both full or part-time.
Anyone who valets or details vehicles for a living, whether mobile, working from home or from a specific premise should obtain appropriate insurance cover. This needs to cover not only the possibility that you might need to move customers vehicles but also protect any tools, stock and equipment against damage or theft. Individuals in the valeting industry work with chemicals and cleaning products which may cause accidents, so it is wise to make sure you are covered for this as well.
Insurance for a mobile mechanic should cover your own vehicle as well as any tools and equipment that you use for your work. It will also cover any testing and diagnostic work you need to carry out on customer vehicles. Public Liability insurance is a must as you will be working where a customer needs you, and this will protect you against any claims that might be made by a member of the public for injury or property damage. Cover for parts you use should also be considered in the form of Sales and Service Indemnity, there is always a chance that something might go wrong, so it is better to be covered.
Those individuals who move customers vehicles from one place to another, usually a storage site or designated premises, are referred to as car jockeys. While this might only necessitate the need to move a vehicle just a short distance, for example, airport storage, it is still essential to make sure you have insurance in place to cover both you and your customer. This cover may include your premises, any buildings and their contents including any equipment that you might have. You may need to consider offering both employers’ and public liability insurance as well.
Things to Consider When Arranging Cover
There are a number of things that you should take into consideration when it comes to arranging your Motor Trade insurance policy. The single most important thing to remember is that you should never make any false claims about your circumstances. Any policy that you take out is based on the details that you provide at the time of asking for a quote; your premiums, as well as the cover, are based on this. While there are some answers that you might be aware will increase the price of your premiums, lying about them or leaving out these details in order to obtain a reduced premium may cause you further issues further down the line. Should your insurance company find out that you have lied or omitted to the truth they can cancel your policy, void it or reject any claims that you have pending. If by law, you are required to have cover them this could give you further issues. It may also lead to it being difficult for you to get insurance cover at any time in the future.
Who Should be on Your Policy?
Careful consideration should be given to how many drivers you add to your policy; the more people you add, the more of an insurance risk you are to your provider because there is more likelihood of an accident. So, whether you want to add members of your own family, a business partner or employees weigh up the advantages and disadvantages of them being on your policy. If you want to keep your premiums down this is very important. Also, remember that any drivers under the age of 25 are seen as a higher insurance risk and will also contribute to higher premiums levied. If you are considering anyone who has a criminal conviction or a driving conviction than they may at best make your premiums higher, or at worst make it difficult for you to obtain cover.
Before you find the most appropriate insurance for your business, you should take a long hard look at your business and conduct a thorough review so that you do not miss anything. If you plan to make any changes in the near future, consider whether they will have an impact on your insurance.
Make sure that you understand what is required in terms of insurance for your business to be operating within the law. At the very least you will require Third Party cover, but there are also additional costs such as Employers’ Liability cover that you might need to consider.
It can’t be stressed enough just how crucial it is to ensure that the information you give when taking out your policy is 100% correct. If you have any questions or are unsure of anything, check it. You need to be upfront about your claims history in full, and also where vehicles are stored; because if you are not then you run the risk of your policy being cancelled, this will leave you without over and may make it difficult for you to get any cover from an alternative provider.
If you only operate your business as a part-time concern, then you need a policy that accommodates that – there are specific policies for part-time traders. If you get regular Motor Trade cover but do not actually qualify for it, then you will likely have any ongoing claims rejected, and the insurance cancelled.
You will probably be offered a number of additional products to go with your cover. Do not reject them out of hand. Give some careful consideration to what value, if any, they might add to your policy in terms of the cover that they afford you.
There are three types of liability cover available – Employers’, Product and Public Liability. We have already discussed the first of these in “The Law”, but it is crucial that you research into the other two as they can both offer a better range of protection for your business.
The Right Cover
The cover that you are looking for is the one that is most appropriate for your business, and what is right for another company in the same industry may not be the right one for you. There are policies that cost less but that may not offer you everything that you need and policies that will offer you everything you could possibly need, and some things you might not need. There will also be the one that is right for you. It isn’t necessary to take out cover for anything that you simply don’t need for example on an insurance policy for a Mobile Mechanic you may not need demonstration cover. The cheapest policy may not offer you enough cover or the right sort of cover, so be sure to check all the details.
Consult a Specialist
Insurance can be confusing, and there are so many variables that it is well worth considering speaking to a company who are specialist motor trade insurance providers. They will be able to find the right type of policy for you, one that will cover all aspects of your business including offering you the most appropriate indemnity covers.
Motor Insurance Database
For a number of motor traders, it is necessary to update the Motor Insurance Database (MID) on a regular basis, this is due to the number of vehicles that are owned and used. If a customer’s car is in your possession for over 14 days or if you have any hire cars or courtesy vehicles on a temporary basis then the MID must be updated.
Hopefully now you should have a good idea of how to find the right insurance policy for your specific motor trade needs. Make sure you take into account the advice above when comparing providers, and you should be on track to find a policy that works best for you.
The Easiest Way to Get Motor Trade Insurance Cover
Now you understand the world of motor trade insurance, here’s how you can get quotes with no fuss – click the button below!
We’re here to provide you with a quick and easy way to get traders’ cover through a panel of specialist providers. Time to get cracking then…
Motor Trade Insurance FAQ
What is motor trade insurance?
Motor trade insurance is a special type of cover that’s designed for those who work in the motor trade. Typically, those who work in the motor trade will have access to several vehicles and need to be able to drive them to and from their premises. Motor trade insurance provides protection against the associated risks.
What does motor trade insurance cover?
A typical motor trade insurance policy will provide cover for collection and delivery of customer vehicles, road testing customer vehicles as part of a service, any vehicles purchased for trade purposes and vehicles that are used as an accompanied demonstration.
Am I eligible for motor traders insurance?
In order to be eligible for motor traders insurance, you must –
- Hold a full UK Driver’s Licence
- Be at least 23 years of age
- Be able to prove you work in the motor trade
Who can benefit from motor trade insurance?
Anyone who works in the motor trade can benefit from motor trade insurance. These include –
- Car showrooms
- Auction houses
- Mobile mechanics insurance
- Repair shops
- Valeting services
Can I get cover for my motor trade premises?
Yes. If you get a combined policy this will provide cover for your premises as well as your tools, stock and cash.
What information do I need to provide to take out motor trade policy?
To take out a motor trade policy you’ll need to provide correct and up-to-date information about your business such as the type of business you run, your employees and whether or not you have a premises.
In addition to this you’ll also need to provide your driving licence and proof of trading.
Can I Drive My Own Vehicle On a Traders Policy?
Most motor trade policies insure you to drive any of your own vehicles and vehicles in your possession for motor trade purposes. Some insurers do restrict certain types of vehicles.
I just fix cars at home – do I need motor trade insurance?
If you fix other people’s vehicles in order to make a profit, you will need motor trade insurance.
When do I need to notify my motor trade insurance provider of any new vehicles I get?
For any vehicles that are in your possession for more than 14 days, you must notify your insurance provider immediately.
What is the Motor Insurers’ Database?
The Motor Insurers’ Database is a database of insured vehicles that can be accessed by the police and DVLA. It is used as a way to combat uninsured drivers.
Any vehicles that are in your position for more than 14 days must be listed with the MID to comply with the law. Your insurance provider will be able to do this on your behalf.
Does it cost more to add another driver to a motor trade insurance policy?
Yes. More drivers means greater risk so your premium will be higher when there’s more than one named driver.
Can I add employees to a motor trade insurance policy?
Yes. If you want to include employees on your policy then it’s possible to do this.
I only work in the motor trade part time. Can I still get a policy?
Yes, the majority of providers offer part time motor trade insurance policies.
Can I use a private NCB with motor trade insurance?
Yes, most insurance providers will let you use your private or commercial NCB when taking out a motor trade insurance policy.
What types of liability insurance are there under a motor trade insurance policy and do I need them?
The two main types of liability insurance are public liability insurance and employers liability insurance.
If you have employees, even if it’s just 1 employee on a part-time basis then you’re legally obligated to get employers liability insurance.
Although public liability insurance isn’t required by law, it is highly recommended that you get it.
Is proof of trading always required to take out motor trade insurance?
Yes, most insurance providers will require you to provide proof of trading when taking out a policy. It will also be required when making a claim so it’s a good idea to have POT available at all times.
Do I need to declare convictions under a motor trade policy?
If your conviction is spent according to the Rehabilitation of Offenders Act then you are not required to declare your convictions. If they are unspent then you will be expected to disclose them.
What if I want to cancel my motor trade policy before it ends?
You may be able to cancel your policy before it ends, although cancellation fees will apply with the majority of insurance providers. You’d also need to return your insurance documents.
How long until I receive my motor trade insurance documents?
You’ll be sent an email that includes the details of your policy immediately after you make your first payment. Your physical documents will also be sent to you via post and you’ll receive them in 2-3 days with most insurance providers.
What if I want to increase the level of my motor trade insurance cover I have mid-term?
This is usually not an issue and your insurance provider will be able to advise you accordingly.
How can I pay for my motor trade insurance?
Most insurance providers will give you the option to pay for your cover either by making an upfront payment that covers a year or longer of the policy; or by paying monthly via direct debit. Paying more upfront will enable you to make a saving with most insurance providers.
Are there any exceptions to vehicle types that can be insured under a motor trade policy?
This will vary from one insurance provider to the next. Typically any common vehicles, such as cars, bikes, vans etc. can be covered. Vehicles such as very high-end cars, bikes or imported vehicles might be more of an issue so it’s always important to let any insurance providers know about them.
Can lease/hire purchase vehicles be covered under a motor trade policy?
Yes it’s generally not an issue to get cover for vehicles that are bought on higher purchase or lease vehicles, providing the lease is for 6 months or longer.
How do I get trade plates?
You can get trade plates by applying for them with the DVLA.
Can I drive vehicles without valid MOT/road tax under a motor trade policy?
Any vehicles you drive will need to have a valid MOT certificate. The only exception to this is if they’re being driven to an MOT that’s been booked in advance.
As far as vehicle tax goes, you can drive vehicles without tax providing that you have valid trade plates.
Are luxury and sports vehicles covered under a motor trade policy?
This will depend on the insurance provider. Some providers consider sports and luxury vehicles too high risk to cover them but this isn’t always the case. It’s a good idea to contact any insurance providers to let them know the exact details of any high-end vehicles you have to find out if you can get cover for them.