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.
Who can benefit from it?
Anyone who works in the motor trade can benefit from motor trade insurance. This include –
- Car showrooms
- Auction houses
- Mobile mechanics
- Repair shops
- Valeting services
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.
How much does it cost?
This will vary depending on the level of cover you require, the level of risk you pose and the insurance provider you go to. Premises that are in high crime areas will usually pay more as will those who require full coverage.
Am I eligible?
In order to be eligible for motor trade insurance, you must –
- Hold a full UK Driver’s Licence
- Be at least 21 years of age
- Be able to prove you work in the motor trade
I only work in the motor trade part time. Can I still get a policy?
Yes, the majority of providers offer part time policies.
Can more than one drive be added to the policy?
Yes. If you want to include employees on your policy then it’s possible to do this.
Does it cost more to add another driver?
Yes. More drivers means greater risk so your premium will be higher when there’s more than one named driver.
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.
When do I need to notify my 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.