What Is Motor Trade Insurance?
Motor Trade insurance is the general name for the type of insurance policy offered to people working within the motor trade. This includes buying and selling vehicles for profit (Motor Traders), fixing vehicles (Mechanics & Mobile Mechanics), cleaning vehicles (Valeters), moving vehicles (Car Jockeys) or recovering them if they’ve broken down (Vehicle Recovery Agents). Motor Trade insurance is available for people working in the trade on a full-time basis, as well as those running their trade business on a part-time basis too. There are two main types of cover; Motor Trade Road Risk, and Motor Trade Combined cover.
Road Risk Insurance
A Motor Trade Road Risk insurance policy can cover you to drive any vehicle in your possession, for either personal use or for motor trade purposes, including any vehicles belonging to your customers, where driving is required to carry out your work.
A Motor Trade Combined insurance policy can also cover your buildings, contents, tools, equipment and money too. As with standard Car insurance, Motor Trade insurance comes in 3 levels of cover – Third Party Only, Third Party, Fire & Theft, and Comprehensive cover. Each level of cover offers a different level of protection.
There are also a number of additional Liability insurance products available to Motor Traders – Public Liability, Employers’ Liability, and Product Liability (also known as Sales & Service Indemnity). Public Liability covers you against any claims made against you by members of the public for personal injury or damage to property, whilst Product Liability covers any work you carry out or parts that you fit, in case they are faulty. Employers’ Liability is a legal requirement for any business with employees, covering you in case of personal injury or illness caused as a result of the work they carry out.
Who Needs Motor Trade Insurance?
If you work in the motor trade, whether you’re selling, buying, fixing, moving, cleaning or recovering vehicles, then you need Motor Trade insurance to protect you and your customers, should anything happen. Whether you work from home or from premises, are full-time or part-time, if you work in any of the following trades, then you need to consider getting cover in place:
Vehicle Sales Insurance
Vehicle Sales insurance policies are aimed at motor traders that buy and sell vehicles for profit. It doesn’t matter if this is your full-time job, or you do it on a part-time basis alongside another occupation. We can cover Traders working from home or from a specific business premises, and can tailor your policy to cover the things you need as a trader, such as demonstration cover, goods-in-transit or stock of vehicles. For larger Traders, we also offer cover for buildings, contents, tools and money.
As a mechanic, you’ll need an insurance policy to cover you against a number of things specific to the work you carry out. You’ll need a Mechanic’s insurance policy that allows you to drive customer’s vehicles for testing and diagnosis, and you’ll likely need protection for your tools and equipment such as lifting machinery and vehicle ramps. If you’re selling and fitting parts, then you may also want Sales & Service Liability just in case anything goes wrong with the work that you do or the parts that you fit.
Body Shop Insurance
Our Body Shop insurance policies can be tailored to suit your business, with cover for your machinery, all of your tools and specialist equipment (such as spraying booths), your premises and its contents as well. If you have vehicles or courtesy cars, these can be covered, and if your business has employees, we can cover them too with our Employer’s Liability insurance. You can also add Public Liability or Sales & Service Indemnity, to make sure you’re covered if anything should happen to a member of the public, or as a result of the work you have carried out.
Vehicle Recovery Insurance
If you run a Vehicle Recovery business, or work as a sub-contractor for somebody else, then there are several things you’ll need to make sure are covered in any Motor Trade insurance policy you take out. You need to cover your own vehicles and recovery trucks, as well as any that you are towing or recovering whilst they are on the back of your truck. You may also want to protect your tools and equipment, as well as your premises and any contents. If you have any staff then you’ll also need Employers’ Liability, whether that’s for a recovery agent, or a part-time bookkeeper doing your accounts.
Tyre Fitters Insurance
Working as a tyre fitter means you’ll need a Motor Trade insurance policy that covers you for driving customer’s vehicles, as well as protecting the work you do and the parts you fit. Your garage may have vehicle ramps and lifting equipment that you’ll want to protect, and you may even have employees working for you that need covering too. All of these things can be protected under a Tyre Fitters insurance policy with Think, whether you’re a full-time or part-time Motor Trader.
Our Valeters insurance policies are created specifically to suit professional valeters and vehicle detailers, whether you work from a designated premise, work from home, or provide a mobile valeting service. We’ll provide you cover to move your customer’s vehicles, as well as protecting your tools, equipment, and stock against theft and damage. Working with chemicals and cleaning products means there is always the chance that an accident will occur, so we’ll cover you and your business, and protect your employees, your customers and their vehicles too.
Car Jockey Insurance
Our Motor Trade insurance policies for Car Jockeys provide cover for you to drive your customer’s vehicles to and from designated premises and storage sites. You may only be moving vehicles a short distance, but you still need to protect yourself and your customers. We can also cover your premises, buildings, contents and any equipment you may have, as well as offering Public and Employers’ Liability cover too.
Mobile Mechanics Insurance
A Mobile Mechanics insurance policy can cover you for testing and diagnosing the vehicles you’re called out to, as well as protecting your own vehicles, tools and equipment too. As a mobile mechanic, you will be working wherever the customer needs you, so having Public Liability cover will protect you against claims made against you for injury to a member of the public or damage to their property. We can also provide Sales and Service Indemnity to cover any work you do and parts you fit, just in case there’s anything wrong with them.
Top Tips For Motor Traders
When arranging your Motor Trade insurance, there are a number of things you should consider: Never be tempted to lie about your circumstances – Your insurance policy is based on the details you provide when getting your insurance quote. Sometimes you may know that certain answers will cause your price to increase, and so be tempted to lie, or leave out certain details to reduce your premium. However, when we find out, your insurance can be cancelled and made void, and any pending claims could be rejected. This could lead to further problems if you were required by law to have cover, and it will make getting cover in future very difficult.
Carefully consider who to add to your policy - The more drivers you add to your Motor Trade insurance policy, whether they be employees, business partners or members of your family, the greater the risk you pose to the insurer as there is more chance of someone being involved in an accident. Therefore, to keep your insurance premium down, always consider who you want to include on the policy as their circumstances can affect how much you pay. Drivers under the age of 25 will have a significant impact on the cost of your insurance as they are seen as a much higher risk. Similarly, drivers with driving convictions or criminal convictions can increase your premium, and in some cases, make it difficult to get cover at all.
Other tips for reducing your Motor Trade insurance include increasing your policy Excess, building up your No Claims Bonus, looking at where your vehicles are parked or stored, and providing proof of trading to demonstrate you run a legitimate motor trade business. All of these things, if managed properly, can help reduce the cost of your cover.
Why Choose Think Insurance?
Whether you’re an experienced trader looking for a better deal on your Combined insurance, or you’re just starting out and trying to find a Motor Trade Road Risk insurance policy that’s right for your business, we can help you out. Our team of motor trade experts will search our panel of leading underwriters to find a policy with all the features and benefits you need, and try and save you money in the process.
What’s more, we back up great prices with award-winning customer service, so we must be doing something right! Our policies can include all of the following:
- Demonstration Cover
- Tool & Equipment Cover
- Cover To Drive Customer Vehicles
- Carriage Of Vehicles Cover
- Stock Of Vehicles
- Employers’ Liability Cover
- Public Liability Cover
- Cover For Recovery Trucks
- Business Interruption
- Multi Premises Cover
- Sales & Service Indemnity
Still need convincing? Here’s more reasons to choose Think:
- We are one of the UK's leading Motor Trade insurance brokers
- We work with the most respected underwriters in the motor trade industry
- We offer customers a number of flexible payment and instalment options
- There are no charges for updating the MID – We provide facilities to make the updates yourself
- There’s no limit to the number of vehicles you can include on your motor trade policy
- We can cover vehicles up to 44 tonnes in weight
- We are a UK based Motor Trade insurance broker with all offices in the UK, not overseas