Everything You Need To Know About Motor Trade Insurance

Acquiring Motor Trade insurance has become easier over the past several years, but understanding such a complex beast hasn’t. With so many nuances and alterations from policy to policy, it can be very easy to misunderstand what you’re purchasing. With the different levels of cover available to you, as well as options like Public Liability, it’s become more than just getting an insurance policy. It’s vital to know what you can be protected against and which cover to purchase so that you don’t go out of business, if anything were to happen that is.

Insurance is a difficult thing to get your head around, especially when it’s something as niche as Motor Trade insurance. This is due to there being limited knowledge on the internet for you to read about.

With such confusion around this topic, our guide is here to remove any uncertainty and provide you with the information you need in order to understand Motor Trade insurance.


What Is Motor Trade Insurance?

Motor Trade insurance policies are designed to protect those who earn their livelihood through repairing, selling, purchasing or doing anything that’s related to vehicles. This means any profession from a mechanic, to a car salesman, to a valeter are in line to purchase Motor Trade insurance. It is essentially insurance for anyone that works with vehicles of various types; no matter how large or small the business is.

Those who work in the Motor Trade will also have access to several vehicles, whether that be their own or their customers, and they need to be able to repair and drive them to and from their premises. Motor Trade insurance provides cover against the risks that are associated with the repair work that goes into fixing their customers cars, as well as having to drive them to where they need to carry out their work.

Motor Trade insurance can even provide cover for those who work part-time in the industry. There are several different kinds of insurance policies on offer that vary in features and level of coverage. Make sure that you decide on an insurance policy that suits the needs and budget of your business.


What Can Motor Trade Insurance Cover?

Motor Trade policies are usually tailored to a business’s specific requirements. It’s your choice what cover you decide to take out but some aspects are compulsory by law, so it’s worth thinking about what risks you want to be insured against. A standard policy will provide cover for the collection and delivery of customer vehicles, as well as protecting you against any repair work that you have to undertake.

It goes without saying that the more you have covered, the more expensive your premium will be. Here is a brief summary of the different aspects that can be protected:

Road Risk: If you take vehicles onto the roads (delivering cars to buyers, testing cars to check faults) then you need road risk cover. Insurance for vehicles is compulsory and you can opt for fully comprehensive, third-party or third-party, fire and theft cover.

Combined: Having this option will cover your business for road risks as well as equipment and tools, and it can even cover your premises. It usually works out cheaper to take out this policy that several separate policies. Just make sure that it covers all the relevant aspects of your business.

Public Liability: This ensures that you and your workers are covered against any claims made my customers or members of the public.

Employers Liability: This is a must if you have any staff, regardless of position in the company. This will protect your business against any claims from your staff.

Extra Drivers: It’s important that your trade policy covers all of your staff, including those who are going to be on the road in your vehicles or your customers. Don’t opt for an ‘Any Driver’ policy as that will be more expensive than naming individual drivers.


Do I Need Motor Trade Insurance?

If you work in an occupation within the Motor Trade industry such as a car salesman, mechanic or a valeter, and you’re able to meet specific criteria’s’ then you will need to take out Motor Trade insurance. You can also opt for a traders policy if you are a garage owner, MOT mechanic, vehicle recovery agents, and body shop owners. Whether you work from home, a garage or on the road, there is a policy ready for you.

A traders policy is designed for those who work in the Motor Trade industry, whether they own multiple cars or work on customers cars. Running a business without the right form of insurance can be extremely detrimental, especially if the worst were to happen and a claim has to be made.

There are businesses out there that require Motor Trade insurance whom are unaware of the requirements. A traders policy can extend to occupations such as car electricians, car paint sprayers, car sign makers and many more. If you’re unsure whether or not your occupation requires Motor Trade insurance, contact us on 0800 812 1000.


What Are The Benefits Of Having Motor Trade Insurance?

There are a number of benefits that spring to mind when taking out Motor Trade insurance. Aside from insuring the vehicles your business owns or are working on against fire, theft and accidental damage, a well-tailored Motor Trade policy can protect your whole business. Having the right policy in place ensures that you will be able to continue running your business in the event of something happening.

One thing that comes with having a combined policy is less administration. Combining different policies together will help reduce paperwork and headaches when it comes to renewal time. By opting to pay annually, you will only receive one notification in the year to renew, rather than multiple notification for each policy.

By getting a Motor Trade insurance policy, it will ensure that any driver is insured, no matter which car they drive for your business. If they drive one of your personal vehicles for the business or returning a customers vehicle to their house, they will be covered under the policy.


How Much Does Motor Trade Insurance Cost?

This is a difficult question to answer as there isn’t one set price for every trader. So many factors play a role in determining the price of a Motor Trade policy, from your profession to the level of cover your business requires. A Mechanic will need a policy with a lot more depth than a policy for a Breakdown Recovery specialist as it will include different facets and desires.

How your business is run will also affect the price of your policy. If you’re a mechanic working from home with little overheads and no staff, then you will pay less than a car salesman with several employees and a premises. Location also plays a part in the pricing. Working in a highly populated area will result in higher premiums compared to trading from a town or village.

Age can also be a factor as well. As with most insurances – the younger you are, the more you’ll pay. Unfortunately this is due to a lack of experience. Insurers see you as a higher risk than those who have been working as a trader for a number of years. Most insurers won’t consider you if you are under-25, some will tolerate 23. Don’t be disheartened though, there is always a solution.


How Do I Get Motor Trade Insurance?

You can go from broker to broker, entering and re-entering your details just to get the same quotes you’ve seen a thousand times. Why would you keep doing that? Who even has the time anymore? That’s where Kompare comes in.

Kompare’s inception came about by not being able to get an instant Motor Trade insurance quote online like all other insurance products, with instant prices displayed on screen without having to speak to numerous brokers. We work with some of the top insurers in the UK to be able to bring you the most competitive prices available on the market.

By entering your personal and business details in our intelligent, short form you will have access to a range of quotes within seconds. Like a quote but can’t commit to it right now? No problem. Simply create a free Kompare account, save your quotes and come back to them at any time. The day may change but the price will remain the same.

See how much you can save today by finding your next Motor Trade policy with Kompare.