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Why Use QuoteSearcher for Motor Trade Insurance?
The term ‘motor trade insurance’ is an all-encompassing phrase that covers many policies and features specific to the motor industry. This can be a mechanics workshop, MOT service centre, breakdown recovery company, scrap yard or auto dealership, among others. Motor trade insurance policies are required by law in order to protect your business and its customers against financial losses. You can also get commercial vehicle insurance through QuoteSearcher, click here to learn more.
Finding a motor trade insurance quote can be a time-consuming process, with many motor insurance companies vying for your business by promising the best motor trade insurance quotes. QuoteSearcher takes the legwork out of this whole process by directly matching you with a panel of trusted and experienced motor trade insurance brokers. They will be able to tailor a policy to your specific needs, ensuring you are fully covered.
Motor Trade Insurance Policy Features
Also known as trader’s insurance, motor trade businesses need to have comprehensive cover in order to be fully protected. There are many risk factors associated with motor trade and working with vehicles. Motor trade insurance features usually fall into three categories: risk, liability or premises. The most common features to include in your policy are:
Building and Contents
Covers the premises, equipment and stock in the event of damage by fire, flood or adverse weather, ensuring equipment is paid for quickly
Protects both business and customer vehicles during the day-to-day process of running your motor trade business
Motor Trade Liability Insurance
You can choose public, employers’ and product liability cover, depending on the unique needs of your business. Find out more about Motor Trade Liability Cover.
Provides cover for additional employees who are using business or customer vehicles while on duty. Learn more about Any Driver Cover.
Motor Trade Business Interruption Cover
This feature guarantees revenue in the event your business cannot operate for any reason (e.g, extensive damage to working premises). Learn more about Business Interruption Cover.
Stock and Damage Cover
This will cover the cost of replacing any stock located at your business premises as well as vehicles that are kept on site
Levels of Motor Trade Insurance
As with any driver on UK roads, there is a minimum level of cover you must have in order to be compliant with the law. Motor trade insurance comes in three levels of cover as with standard motor insurance. The three levels of cover are:
- Third Party Only
Third party only (TPO) protects you against claims made by a third party in the event of an accident. Bear in mind, this will only cover the cost of damage to the third-party vehicle, not your own. This is the bare minimum legal requirement for motor trade road risk insurance
- Third Party, Fire & Theft
Third party, fire and theft (TPFT) road risk insurance is the same as above, however covers both fire and theft, as well as any damage caused to the car during such a crime
- Fully Comprehensive
Most motor trade businesses will opt for comprehensive cover as it can encapsulate many features into one standalone policy. For example, you may want to include public liability cover or an any driver policy as part of your overall cover plan
It is always advisable to go for a fully comprehensive policy, particularly if you run a motor trade business, as this will offer you a much higher level of coverage than TPO and TPFT.
Motor Trade Liability Insurance
If you are working in the motor trade, it is important to protect yourself and your business against any legal liability claims made against you by customers or members of the public. These include:
- Motor Trade Public Liability Insurance
Protection against claims by members of the public in the event of an accident or injury either on your premises or as a result of your work. For example, this would cover the compensation costs if a customer trips over something left lying around in your workplace
- Motor Trade Employers’ Liability Insurance
Required by law if your business employs one or more people, acting as protection against claims made by your staff if they are injured or made ill whilst working for you. This is integral for businesses both for the security of staff and your finances
- Motor Trade Product Liability
If the work you carry out on a vehicle is not to the highest quality and perhaps causes an injury or leaves you customer without use of their vehicle, this type of cover will pay out the costs associated with such a claim
Types of Motor Trade Policy
There are a couple of different types of motor trade policy that you should keep in mind when searching for motor trade insurance.
Combined Motor Trade Insurance
If you own a motor trade business that operates from a dedicated premises, such as a garage or sales showroom, you can take out combined cover in order to fully protect your business and workplace.
Motor trader premises insurance covers any buildings and their contents that are used by the business and its employees in the course of their work. Depending on your specific policy, your combined cover may also include some other features, such as:
- Sales and service indemnity
- Building and contents cover
- Business interruption insurance
- Business stock cover
This type of cover offers a higher level of cover than standalone motor trade insurance because the needs of these types of businesses are more extensive. There will be expensive equipment, customer vehicles and possibly money on premises, and the theft of any one of these elements can cause significant financial losses if they are not covered.
Road Risk Insurance Policy
Road risk insurance as part of your motor trade insurance policy covers all vehicles in your care during the running of your motor trade business. For example, if you work on vehicle repairs and you are dropping a customer’s vehicle back to them, you will be covered to drive their car for the duration of its time on public roads.
This type of policy is particularly useful for smaller businesses operating from private properties, such as engine diagnostics, MOT testing, vehicle sales or body repairs.
Factors Affecting Your Motor Trade Insurance
There are a number of factors that will influence the cost of your motor trade insurance policy. From your workplace to the number of vehicles you need covered, you will need to specify what you need to your broker who will tailor an insurance solution to suit your needs.
Some of the factors to consider are:
- Number of vehicles
If you run your motor trade business from home, the number of vehicles covered by your policy will be limited. However, if you operate from a dedicated premises, you may be able to arrange cover for unlimited vehicles
- Special vehicle cover
If you use a non-standard vehicle for your motor trade business (a tow truck, for example), it is possible you will need more extensive coverage. Talk to you broker about your particular vehicle and they will help you find the right motor trade policy
- Number of drivers
For motor trade businesses that employee a large number of drivers, including any-driver cover to your motor trade policy is wise. This additional coverage is usually combined motor trade insurance policy, but you could choose named drivers should your business operate with regular staff
- No claims discount
It is possible to offset the cost of motor trade vehicle insurance with the no claims bonus achieved with your personal vehicle. Speak to your broker about this feature to potentially reduce the cost of your premium
Your motor trade policy and its features will vary depending on which area of the industry you work in.
UK & Abroad
Added cover if your trade takes you outside UK borders
Increased road risk cover for businesses with more road usage
Part Time Trader
For those the work in the motor trade not on a full-time basis
For motor trade insurance policy owners aged 25 or less
Types of Motor Trade
There are many types of motor trade business that would need to be insured by an overarching motor trade insurance policy. Some of these include:
- Car Dealer
- Used Car Dealer
- Car Mechanic
- Car Valeter
- Exhaust Fitter
- Tyre Fitter
Frequently Asked Questions About Motor Trade Insurance
After searching for hours on the internet I finally came across QuoteSearcher whose partners provided me with excellent quotes far better than I had received from anyone else.
I was delighted with the quotes I received from QuoteSearcher. I ended up making a saving of £300 on my insurance!
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