What is Motor Trade Insurance?
Motor trade insurance is an insurance policy that protects traders who work with vehicles in the public domain such as motor mechanics, vehicle sales, valeting or body shops (just to list a few).
It is also commonly referred to and known as traders Insurance usually offered in two forms: Road risk Only or if you need to cover a premises, then you may need Combined Motor Trade Cover.
Do I Need Traders Insurance?
If you work within the car trade industry for profit, then yes, you will require a motor trade policy. People often think that only those who buy and sell cars require insurance. This is not the case and it is a legal requirement that everyone involved within the industry be covered with a minimum level of Third Party Insurance.
A motor traders insurance policy is not only beneficial to the owners of the business, but to the employees at the same time. It can prevent everyone from losing their hard-earned money in case there is an unpleasant event that may occur.
Is buying Motor Trade Insurance easy?
Getting Cheap Traders Insurance is not always as easy as it seems. Assuming you are an actual motor trader, you must first determine what kind of policy is right for your business (our advisors can help with this). You can see from the insurance quotes the differences in their features, coverage, as well as premiums.
There are 3 main kinds of motor trade insurance that can be bought by business owners related to car trading industry. This includes Third Party Insurance, Third Party Fire and Theft Insurance and Comprehensive Insurance. These can then be tailored to include extras such as employers liability and public / professional liability for instance.
Working out the right level of cover for you
When buying a motor trade policy, you have to make sure that you know all the needs of your business. This would aid you in determining the kind of policy which is perfect for you and your employees. Some of the insurance quotes include policies that have administrative benefits and allowing the use of particular employees to use the vehicles for personal reasons.
Third party motor trade insurance usually has policies for the car trading business owners who provide general vehicle repairing services. However, this is also an important insurance for those who repair or restore vintage cars. Out of all the motor trade policies, this is the most basic trade insurance and will only cover the third party for damaged vehicles of injuries.
On the other hand, Third Party Fire and Theft motor trade policy covers the damages of the third party as well as fire and theft of your vehicles.
If you want traders cover that would cover more than just the damages in your business, then comprehensive with full liability insurance is the answer to your needs.
More often than not, these policies also cover insurance for the employees working for you. Aside from that, your business is also covered or insured even if it is your employees who have done the damage to the vehicles related to your motor trade.
Why do I need Traders Insurance?
Being in the motor trade industry means making sure you don’t risk buying or selling cars that you know will not give you a return on your investment. Bearing this in mind, you will certainly want to take a similar approach to your motor trade insurance as taking the risk of not having effective and comprehensive cover could result in financial or reputation damaging effects. Luckily, getting motor trade insurance can be easy to obtain and it ensures that you get the most effect cover to match your business needs.
Can I not just pay claims myself?
One of the main risks involved in not having adequate cover is the financial damage it can cause. Some traders may think it would be cheaper to not invest in motor trade insurance and to pay for any claims themselves should one arise. Although this sounds like an easy option, it is the most financially damaging route to take.
It may seem like a cheaper option to take due to not having monthly payments to your insurance provider but in the event of a claim, you can never be fully prepared for how much you may have to pay out.
Our Motor Trade brokers measure the risk of claims and how much these claims could cost. If you simply think you can pay for these claims yourself, you could find that claims cost far more than you would have anticipated. This can lead to you risking the financial standing of your motor trade business.
Another main cause for concern if you do not take out adequate motor traders insurance is that the effects of not being fully covered can severely affect your business and customer relationships.
Customers are more likely to sell their car, buy a car, or have their car fixed by a motor trader who has valid and full motor trade policy. This is because the customer will feel comforted to know they are protected from all claim situations. Not being a fully insured motor trader could mean you risk losing customers or can’t even attract customers to your business causing a drop in financial stability.
Therefore it is best to always have effective motor trade policy, it simply isn’t worth the risk of going without it. Investment into motor trade insurance today ensures you will continue to attract customers over time by following the correct guidelines in the event of claim.
Can I Get a Cheap Traders Insurance Policy?
Cheap traders insurance unfortunately is not always a given regardless of who you apply with. The price of your premium depends entirely on your risk profile such as how well you have maintained your no claims bonus, your trading location and more. However, even with a less than perfect risk profile, we can help find you a competitive policy still.
Speak with one of our advisors and they will be more than happy to assist you with your query.
What industries are covered by motor trade insurance?
- Vehicle sales – part time and full time
- Roadside Recovery
- Accessory fitters
- Auction Houses
- Mobile Mechanics
- Vehicle restoration
- Body Shops
- MOT and Vehicle servicing
- Car Jockey’s
- Exhaust and Tyre fitting
- And many more
Road Risk Vs. Combined cover
Make sure that you understand what the difference is between road risks and a combined policy so that you know what policy suits you and your needs.
The last thing you want is to put your business in jeopardy because your policy doesn’t cover the aspects of your trade that you thought it did.
Road Risk Insurance
Road Risk policies typically include comprehensive cover and are a must have if you are looking to start in any industry that requires trader’s insurance.
Comprehensive policies will cover customer vehicles for all different types of collisions including ones that hold either you or one of your employees liable.
Comprehensive Road Risk policies are also able to cover your vehicle for fire damages, theft, vandalism and accidental damage while the vehicle is stationed at your premises of sales.
Read more on Road Risk Insurance here.
If you work from a business premises, you may want to consider a combined policy.
Combined policies will provide protection for both your premises and the vehicles at the premises (either yours or your customers). If an accident were to arise on the premise, your tools and equipment will be covered as well as the vehicle that you were working on. Combined policies can be tailored to your specific needs to ensure that you have complete peace of mind when it comes to being covered for all possible occurrences at the workplace.
Read more on Combined Insurance here.
Additional Motor Trade Cover
Here are some other types of cover that you can choose to have as an add-on to your motor trade policy.
- Legal Expenses – Legal expenses allow you to be able to fight a claim in court without it affecting your own wallet.
- Breakdown Cover – Just as the name suggests, breakdown cover provides cover if your vehicle breaks down at all and provides rescue and recovery services
- Public Liability Insurance – Public Liability Insurance makes sure that you are covered for costs regarding any legal action that may arise if a third party gets injured or damages occur to their property either at the business premises or if you are working at their home
- Employer’s Liability Insurance – It is not just the public claims that you have to anticipate; sometimes claims may come from your own employees. Employer Liability Insurance covers this scenario by covering expenses arising in employee claims.
Want to save on your policy?
Here are some useful tips and tricks to make sure that you can accumulate the maximum savings on your policy.
- Pay annually – Though annual payments may appear less appealing than monthly ones, you can save quite a bit more on your policy than you otherwise would. A great tip here would be to always put a little bit of money aside throughout the year; that way, when your renewal comes you are able to pay the lump sum off and save yourself a pretty penny in the meantime.
- Shop around – Now, this one seems obvious, but its surprising how many people are content on renewing with their current policy provider. Make sure you always shop around when looking for renewal prices, you could end up saving yourself hundreds of pounds whilst maintaining the same level of cover.
- Security – Heightening your premises security will more than likely result in a drop in renewal price, as insurers will be more confident that your vehicles are secure and have a smaller possibility of being stolen or vandalised.
Why Total Insurance?
We work with a large board of specialist brokers who enable you to quickly compare motor trade insurance. Our UK leading traders insurance brokers use expert insurers such as Tradex. All our advisors are knowledgeable with a wealth of experience working on finding you competitive traders cover.
Our services are free to use and there is no obligation to take out the premium. Simply enter your details and get comparing!Get My Quick Quote | 0203 876 5050