Driving Restrictions Under The Motor Trade Insurance Policy?

When taking out Motor Trade insurance cover there are several types of vehicle use you can have on your policy, each with their own restrictions:

• Motor Trade Use only – This means that the vehicles covered on the policy can only be driven for the purpose of business, whether that be moving vehicle stock around if you’re a motor trader, or for driving to and from customers to fix their vehicles if you’re a mobile mechanic, or clean them if you’re a mobile valeter. With Motor Trade Use only, the vehicles on the policy cannot be driven for any other purpose;
• Additional Business Use – If you have Additional Business Use on your Motor Trade insurance policy, this means that the vehicles that are covered can be driven for use as part of another business, as well as the motor trade. This usually applies to the Proposer, but cover may be extend to include employees as well providing that the Proposer is also the owner of the other business that the employees would be using the vehicle for as well.
• Social, Domestic & Pleasure Use – Social, Domestic and Pleasure use covers personal, non-business use of the vehicles on the policy including taking the children to school, driving to and from the shops and commuting to work, amongst other things. This cover will usually apply to the Proposer, and their spouse/partner, however in some cases it is possible for Social, Domestic and Pleasure use to be extended to employees as well.

It is possible to set your Motor Trade insurance policy up so that each driver on the policy has different driving restrictions. For example, your spouse could have Social, Domestic and Pleasure use but no business cover, whilst some of your employees have Motor Trade Use only, and others, who work for your motor trade business and another business you own such as a builders or plumbing, have Additional Business Use cover too. 

As you can see it can get very complicated and so it’s always best to discuss your requirements with one of our experts. Don’t forget to always consider the driving record and circumstance of each driver before adding them to your policy as things like age, driving convictions and criminal convictions can have an impact on the price you pay and can even prevent you from being able to get cover altogether. 

There may be certain restrictions that do or do not apply for certain drivers on your policy. For full details of the various restrictions available and what can or can’t be included in relation to your own business and Motor Trade insurance policy, call 0330 127 4100 and speak to one the expert Motor Trade team at Think Insurance.