Motor Trade Insurance UK - Five Myths Busted

We take a look at five myths about Motor Trade insurance and explain why they are wrong.

"I’ve Got Fully Comp Car Insurance, So I’m Already Covered"

Some motor traders starting out may falsely think that they can rely on their regular Private Car insurance policy to operate as a motor trader, because they wrongly assume that the ‘driving other cars’ feature on their policy covers them to drive any car for any reason. However, this usually doesn’t extend to motor trade activities and is limited to Third Party cover only.

If you were in the business of selling cars then you would not be covered for potential customers to test drive your vehicles, unless they already had their own Comprehensive insurance policy that allowed them to do so. They would expect to be covered under your Motor Trade insurance policy through Demonstration Cover, and could refuse to pay for damages to your vehicle if they are involved in an accident. For motor traders just starting out, we would recommend a Think Insurance Road Risk Only Motor Trader insurance policy - it’s ideal for motor traders working from home and on small budgets.

"You Need To Be A Full-Time Motor Trader To Get Insured"

A Motor Trade insurance policy can be underwritten to suit all types of motor traders; whether you’re a part-time vehicle seller using your home as a base for your trade business, or a full-time motor trader with multiple premises.

If you have another occupation and would like to get into the motor trade, then you wouldn’t have to abandon that occupation; you just need to inform your Motor Trade insurance broker so that your Trade Car insurance policy correctly reflects your situation.

"Motor Trade Third Party Only Is Cheapest"

Whilst this might be true most of the time, it’s always worth asking what other options are available, as you may sometimes be able to get a better level of cover for a similar or, in some instances, the same price. Even if you do decide that a Motor Trade insurance policy with Third Party, Fire & Theft or Third Party Only cover is enough, you could only be saving money in the short term, as you would be left out of pocket if you were to be involved in an accident that was your fault.

Remember, cheapest is not always the best!

"Buying Directly From The Insurer Will Make It Cheaper"

This might be true for comparison websites but it’s certainly not true for insurance brokers, as specialist Motor Trade insurance brokers like ourselves often have access to exclusive rates which aren’t available to the general public.

"I Can’t Use A Private Car NCB For Motor Trade Insurance"

Whilst all insurers will have different rules for accepting No Claims Bonus that has been earned on a Private Car insurance policy, most will take it into account. This means that your years of good driving won’t go to waste when applying for a Motor Trade insurance policy!

Get A Motor Trade Insurance Policy

If you have any questions about the insurance policies offered by Think Insurance, you can view many previously answered topics in our FAQ section. However, if you’d like to speak to someone about a Motor Trade insurance quote, you can ring a member of our highly trained Motor Trade insurance team on 0800 221 8077. Alternatively, you can click ‘Get a Quote’ below, leave your details, and one of our team will be in touch shortly.