Motor Trade Insurance

• You hold a full UK driver’s licence
• You are at least 23 years old - Due to the level of risk involved, very few insurers provide cover on traders’ policies for people under 21 due to the high level of risk involved.
• You can provide proof that you work in the motor trade - Whether you work in the motor trade part-time or full-time you must be able to provide proof that you do. This is usually in the form of receipts, e.g. for vehicles you have bought, sold, or vehicles worked on or transported. You will be given adequate time to provide proof that you work in the motor trade so you don’t need to panic if you don’t have receipts to hand when applying for a policy.

• Road Risk Insurance - Road risks are a must with a motor trade policy. As with regular car insurance, you can choose the level of cover you need. If you are looking to operate your business for minimal expense then a third party only policy will enable you to do this. If you want more protection then you can opt for a third party, fire and theft policy, whilst a comprehensive policy will cover customer vehicles for all types of collisions, even if yourself or one of your employees are liable.
• Combined Motor Trade Insurance - A combined policy is ideal if you operate from a premises, and can be tailored to suit your needs. This will cover all cars on site for theft, loss or damage, as well as full protection for the premises itself.
• Part-time Motor Trade Insurance - If you work in the motor trade on a part-time basis then it is inefficient to pay for a full-time policy. With a part-time motor traders insurance policy you can get flexible cover that provides protection only when you need it.

Additional areas of cover within motor trade insurance include:

• Public Liability Insurance – Working on customer vehicles means that liability claims are a real possibility; this cover can protect you from them.
• Employer’s Liability Insurance - In addition to claims from the public, you also need to consider claims from your own employees due to injury or worse during work.
• Legal Expenses - If you choose to fight a liability claim in court then the legal expenses can soon add up. Having them covered by your policy will ensure you are able to fight the claim without being out of pocket.
• Breakdown Cover - Breakdown cover is always a good idea when you work in the motor trade, especially if you frequently transport customer vehicles over long distances.
  

• Pay for your policy annually - Insurance providers prefer when you pay a larger lump sum upfront so if you are able to pay for your policy on an annual rather than monthly basis then you are in an excellent position to negotiate a lower premium with insurers.
• Make your premises secure - If you’re getting a combined policy then one of the best ways to keep the cost of your motor trade insurance down is by making your premises as secure as possible. Theft from premises is a big problem for those who work in the motor trade, so you should take every step you can to make your premises secure. Installing CCTV cameras, security lights and alarms are all excellent ways to lower the risk of theft and vandalism.
• Be selective with your employees - The employees name on your policy will certainly have an impact on the cost of your motor trade insurance. Whilst the criteria can change depending on the type of business you have, the best type of employee is over 25, has plenty of driving experience and a clean driving licence.

• A Guide to Good Driving - This article covers the steps required in order to drive customer vehicles safely. Some of it may seem obvious, but driving safely is imperative when you are frequently dealing with new vehicles. Making numerous claims is something every motor trader wants to avoid and driving cautiously is one of the best ways to do this.
• Steps to Take After an Accident - Educating yourself and your employees on the steps to take when involved in an accident is vital. Naivety about this could result in paying out for an accident that was not your fault. This article covers everything from exchanging information with the other driver(s) to gathering evidence to support your case.
• The MID Explained – Being well informed on the Motor Insurance Database (MID) is important when you work in the motor trade as you will be dealing with it regularly. This article covers what the MID is and what vehicles you need to submit.