A quick guide to Car Trade Insurance

If you are feeling confused about what type of car trade insurance you need within the motor industry, you are not alone. Many businesses in the motor trade are unsure which policies exist and what the policies cover. To help you find the right motor trade insurance, we have put together this useful guide.

Do I need motor trade insurance?

Whether you work part-time or full-time in the motor trade, all businesses at every stage need motor trade insurance. A policy which covers you, your stock, tools and many other aspects of your business could prove essential to the long-term success of your business.

What types of insurance policies are available?

Within the motor industry, there are three main categories of insurance for business within the motor industry, which are aimed at those who buy and sell vehicles, those who drive customers or their own vehicles and those who service vehicles. There are also policies available which will protect employees and members of the public against injury or illness in relation to the business, through public and employers liability insurance.

You can read more on the differences between part time and full time motor trade insurance here.

Where do I start in the motor trade industry?

Most people start off in the industry as a part time trader. By buying and selling cars or repairing cars in your free time and at weekends, you can build up a feel for what being a full time trader will be like. You can read more on starting up here ‘Advice on Starting a Part Time Motor Trade Business‘.

What types of businesses benefit from motor trade insurance?

The policies are individually designed to ensure all stock is covered whether the business sells, cleans, services, collects, delivers or provides breakdown recovery. The most common types of businesses which purchase a motor trade insurance policy are MOT garages, servicing garages, car dealerships, tyre and exhaust fitters and car transporters.

Are there any exemptions?

Although the policies available are broad, there are some specific businesses within the motor trade which may require alternative specialist policies. For example, unusual vehicles or companies which specialise in heavy machinery.

The importance of expert advice

The best way to ensure your policy covers your business is to discuss the business and its individual requirements with a commercial insurance specialist. Without expert industry knowledge you may understate the value of your business, which means that should you need to make a claim the value will be too low for you to continue operating.

As experts in commercial insurance for the motor trade, we can advise which policies you need to insure your business premises, stock, customers and staff, whilst keeping the cost to a minimum. To find out more, please contact our experienced insurance team.