Special insurance consideration is given to those who deal in vehicles or handle vehicles as part of their business as opposed to just vehicle owners. Normally the idea of insurance would be to insure something that we own against monetary loss but, in this case, it is owned by someone else. Looking online, one sure insurance has it covered, because they offer the motor trader policy and provide insurance cover for the vehicles of customers while in the possession of motor trade businesses.
In this article, we will look to understand better what a motor trader insurance policy is and how it helps many diverse types of businesses in protecting themselves from potentially significant losses.
What is a Motor Trader Insurance Policy?
Anyone who sells or repairs vehicles will need to have motor trader insurance. This will allow them to drive and work on vehicles that are not owned by themselves but temporarily in their custody as a business and therefore at that moment their responsibility. Much financial loss could become a business’s liability should this not be insured for and then an unfortunate accident or incident occurs.
The motor trade is defined as either a manufacturer of vehicles, a repairer of vehicles, or a dealer in vehicles. Any of these occupations are going to need a specific insurance policy called a motor trader policy.
What Does a Motor Trader Policy Cover?
A motor trader policy will cover business owners and their employees that are working on or driving around customer vehicles during business hours. Also, vehicles that are kept overnight because of still being worked on or to be available for sale the next day. This type of policy will also cover the vehicles owned by the business itself.
How Useful is a Motor Trader Policy?
A motor trader will allow certain occupations to collect vehicles from customers or to deliver them. For instance, it will provide road and vehicle cover where a vehicle is delivered back to a customer after it is repaired or if it has been bought as new from a car showroom. Mechanics and car sales outfits can benefit from this type of policy in terms of its insurance protection.
Not only is a vehicle covered while on the road but also when it is on the work premises of the motor trader, whether that is at their home if they are a sole trader and mobile mechanic, or inside a car compound. That compound should be locked at night, as the insurer would expect and require, but that does not necessarily make it safe from thieves.
Types of Motor Traders
As far as working out if you need motor trader insurance, it is as straightforward as the definitions above. If you in any way handle the vehicle of a customer then you will want the protection of insurance. This can be a salesperson repositioning a vehicle in a sales line-up. It only takes a momentary lack of concentration to cause even a minor accident that might still mean a repair bill a business would not want to end up paying.
To be eligible for a motor trader policy, you do have to prove that you operate within the motor trade sector. This is possible when you have run any business relating to cars. Then not just cars are included but any vehicle including vans and motorbikes. This can be whether it was servicing them, conducting an MOT on them, or selling them. All these activities would qualify as motor trader activities.
Motor Trader Policy Restrictions
Only named drivers on the policy will be allowed to drive vehicles in respect of a motor trader policy. All cars within reason, which are in a business’s care, are insured but not all drivers. Companies employing in this sector must consider the driving history of potential employees. If there are motoring convictions or claims histories not to be proud of then these will increase insurance premiums. Also, younger drivers must be considered seriously on what they can bring to a business because they will increase insurance premiums, as will much older drivers.
Many motor trader policies will restrict the age of drivers, or at least those taking out this kind of policy. A typical minimum age can be 23, for example. Also, it can be necessary that there has been a minimum of at least a year’s trading experience. Those aged between 21 and 23 can sometimes be accepted for a motor trader policy.
There is much to think of with a motor trader insurance policy, so hopefully the above has helped you to think about what is important and whether it is the policy that you need. Competitive quotations in respect of this type of policy are harder to obtain because not all insurers offer the policy.
