Compare Motor Trade Insurance
Compare motor trade insurance from specialist UK insurance brokers using our free comparison service. Comparing traders insurance is essential to finding the best possible deal.
Our expert advisors make this process easy by connecting you with the brokers that will help and save you the most!
Not all brokers are competitive in quoting all types of trader. That is why we have partnered up with leading providers who rely on us to find them those they can help the most.
What is Motor Trade Insurance?
Motor Trade Insurance also known as ‘traders insurance’ is policy specially designed to protect those who work within the car trade industry. It is also quite common to refer to this type of policy as just ‘trade car insurance’.
Working within the automotive industry will require you or staff to drive and work on customer vehicles. This is referred to as ‘care, custody or control’ and makes you directly responsible.
Types of Policy
Policies for the car trade industry are broken down into two main sections and as a trader, you will fall under one or the other. The type of policy you require will differ greatly depending on your business.
Road Risk Insurance
A road risks policy is what most individuals will require. This form of motor trade policy will typically include cover for the vehicles you are working. It can also cover cars you hold in stock to sell against things such as damage or vandalism, fire and theft.
Those wanting a road risk only policy quite often trade from home or on the road and will not have a separate premises.
You will need a combined motor trade insurance policy if you work or trade from a premises separate to your home. This is to ensure you have premises cover as well as cover for the vehicles.
A car mechanic who works from a garage separate to his home would be a prime business for a combined traders policy.
This type of policy will provide protection not only for the vehicles but a premises and the vehicles at the premises (either yours or a customer’s).
If an incident were to arise at your separate property, whether it be an accident, damage to a vehicle or a theft, it is likely your combined policy will cover it.
Both road risk and combined policies can be tailored by the broker to include other aspects like demonstration cover and employer’s liability cover.
Levels of Cover
Motor trade insurance is extremely flexible and can be tailored to each traders business needs. Much like private car insurance, it is broken down into 3 cover levels.
A third party policy is the minimum level of cover required to trade. This cover level will cover the vehicles or those who are damaged or involved in a accident of your causing. It does not cover anything of yours though.
Third Party Fire & Theft
This form of cover will cover the above but also any vehicles that are set fire to or stolen whilst under your control. This can include your own vehicles as well.
This cover is the most sensible level of cover to go for as this will cover you as well. It will include all of the above but also fully protect and cover yourself and own vehicles in the event of a fault claim.
Comprehensive insurance can be tailored to include cover for tools as well as many other items you may choose to list.
As part of the tailoring process of your trade care insurance, you may wish to add the following additions.
Legal expenses allow you to be able to fight a claim in court without it affecting your own wallet.
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 customer 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. Employers liability insurance covers this scenario by covering expenses arising in employee claims.
Anyone wanting to purchase a car from you is going to want to test drive it. Demonstration cover allows for just that. Although it is likely to only be on a third party basis, potential buyers will be able to ‘try before they buy’.
Working out the right level of cover for you
When buying a traders insurance policy, you need to make sure you know all the needs and requirements of your business regardless size or turnover. Knowing this information will help you determine the kind of policy which is right for you.
Some polices can include benefits such as allowing employees to use vehicles for personal use. This is likely to cost extra though and if you don’t have employees, then it is an unrequired extra.
We suggest you list everything that you intend to do within your business and have that ready when you speak with an underwriter.
Getting Cheap Motor Trade Insurance
Being able to get cheap motor trade insurance will come down to several aspects. Primarily they will focus around your risk profile such as your no claims bonus or experience within the automotive industry.
If you have limited bonus or experience though, there are some things you can so to help better your chances of getting a cheaper policy.
Ways to help get cheap traders insurance
No body wants to spend a small fortune on their insurance! Below are just some of the ways you can quickly help reduce the cost of your policy.
Though annual payments may appear less appealing than monthly ones, you can save quite a bit on the cost of your policy.
A great tip here would be to always put a little bit of money aside throughout the year. That way, when your renewal comes around again, you will be able to benefit from an annual payment saving.
Increase the voluntary access
In the event of needing to make a claim, you will be required to pay an excess. By increasing the size of the excess, you can reduce the cost of the policy.
Now, this one seems obvious, but it’s 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 by simply comparing.
Heightening your premises security will more than likely result in a drop in policy price. Insurers will be more confident that your vehicles are secure and have a smaller possibility of being stolen or vandalised.
Transfer or Mirror No Claims Bonus
This only really applies to new traders. If you are new to the car trade industry and have a good level of personal no claims bonus. You can often mirror this or use it to reduce the cost of your policy.
Compare Motor Policies
It is essential that you compare various traders policies not only for price but for cover offering. My comparing, you give yourself a much better chance at finding the right policy at the right price. It may take a little time on the phone to do but the rewards can be quite worth while.
Are you a genuine motor trader?
In the past, many people bought motor trade insurance so that they could drive any other vehicle. It was once a cheap way to drive any vehicle you wanted without having to purchase a single policy that also reflected the value of the car.
It is no longer possible to do this. Through the duration of your policy, you will be required to provide receipts and invoices for work you carry out or sales documents for cars you have bought and sold.
Although each insurance provider is different, you won’t be required to provide many often only needing to show 6 to 12 for a year.
Essentially, what the brokers and insurance providers are looking for is a financial investment into the motor trade industry.
Why use Total Insurance?
We work closely with competitive brokers in order to find you the best possible motor trade insurance cover.
Our team of agents are knowledgeable and can quickly work out what sort of motor trade insurance broker is right for you.
The insurance broker we place you with will be registered in England and authorised and regulated but the financial conduct authority so you can rest assured with peace of mind that you are in safe hands.