Motor Trade Insurance Explained

This insurance covers one of those slightly greyYour business is growing and you are employing
areas (certainly in the motor trade insurancemore staff, all of whom, if in contact with vehicles
policy area) where you really need to be clearas sales staff or mechanics, will need to be
about what you are buying and why. This isn't anamed on the policy and naturally you may have
grey area because there's possibly one man instaff leaving to go elsewhere - all changes which
every ten streets of the UK changing the vehiclehave to be made to the driver-only policy.
he drives every week or two, and he also knowsNaturally, you can purchase all these differing
a man who can fix it for you if anything goestypes of insurances as separate policies, or include
wrong.as many as possible in one, but as a business
No, this is a grey area because, to a large extent,where you will encourage and expect customers
this is a commercial form of insurance, even ifto enter your premises (even if it's just a
you're only a mechanic and needing the policyforecourt) you will need public liability coverage
cover to deliver the car back to the customerincorporated into your Motor Trade Insurance
(even if that might be the distance from thePolicy.
ramps at the back to the dealer forecourt at theOn the other hand if you are just looking to get
front). All Motor Trade Insurance has a salesyourself a third party only, driver-only type of
element attached to it, so they will say their aimpolicy, you should expect certain conditions to be
is to "provide convenience, superior service andstipulated on your personal, private behaviour also,
competitive prices" but many of these companiesas the value of your insurance rests solely on you
will require a survey of the site in order for youas a risk. One thing to remember though, many
to be able to take out insurance, and you willof the 'specialist' companies say that they do not
need to make sure that your security and alarmneed to carry out a survey of the premises.
equipment is up to scratch - who's going to insureThat doesn't mean that you won't have to
you if you're easy to steal from?provide photos and receipts, it means that they
Then there's the type of business you have; youmay not send their man around to check.
may find that the 'bend and mend' sector isSomething else to consider is that everybody sells
growing, and as a result the value of yourinsurance, from the supermarkets to the bank,
customer's cars has become greater than yourand if you have sought finance to establish or
fixed assets (like machinery). You need toexpand your business then incorporating your
increase your cover to comprehensive, ratherinsurance with the lender may actually prove
than just third party.more profitable for you.