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Motor Trade Insurance

If you are in the motor trade you will need what is known as motor trader insurance or motor traders insurance.

Motor trade insurance is designed to cover people who actively work in the motor trade, with cars, people such as car dealers, mechanics etc.

Who is a motor trader?

A motor trader is anyone who deals with motor vehicles in relation to their business. You can also be classed as a motor trader if you come into contact with cars just as an additional income such as car salesmen, a motor mechanic, a valeter etc.

What is motor traders insurance?

A motor trade insurance policy is designed to cover you, the vehicles in your possession and the public.

Motor trade insurance can be made up of many different elements:

Liability insurance is compulsory by law if you have employees, you can also be covered so that if a member of the public suffers a loss as a result of your negligence, an accident on your premises etc., then you will be covered if you are sued.

The basic motor trade insurance policy is road risk insurance which will cover you to be on the road. Road risk insurance is the basic insurance that will allow you to legally trade.

Many insurers will offer a combined policy, comprised of road risk insurance, and liability cover. It may also be possible to include insurance for the building you work from and business interruption insurance.

Do you really need a motor trade policy?

The law says that you must have road risk cover if you are driving on a public highway. You cannot simply use your normal car insurance policy to cover your motor trade activities. A private car insurance policy stipulates that use of a motor vehicle in relation to motor trade activities is strictly forbidden. You may be able to cover the use of your vehicle for use in connection with your business, but if your business is the motor trade you will need motor traders insurance. If you drive under a private car policy you are in fact breaking the law as you will not be insured.

So the answer is "yes", you do need a motor trade insurance policy if you are in the motor trade.

Will I be able to drive my cars for private use?

Many motor trade insurance companies will allow you to drive vehicles for social use but you can usually exclude this use to bring down the motor insurance premium. It is advisible to check with your insurance company about social use as it differs from company to company.

Can I transfer my no claims bonus (NCB)?

Most insurance companies will allow you to transfer over a private car no claims bonus. If they don't allow transfer of your private no claims bonus, many will offer an 'introduction bonus' where by you can leave your no claims bonus on your private car and on production of proof of no claims they will mirror the number of years when supplying a quote for motor traders insurance..

For example if you have 3 years bonus on a private car, a motor trade insurer may allow you 3 years motor trade bonus, without transferring the bonus over so you can leave that on a private car.

Can I still protect my no claims bonus as I do with a private car insurance policy?

Many insurers offering motor trade insurance will not provide a protected no claims bonus. Motor traders have access to many vehicles and it is almost impossible to be able to protect the no claims bonus as they may have multiple accidents.

Can I add my wife/partner onto the policy?

Most motor trade insurers will allow you to add a spouse or partner to the motor trade policy and they will also be able to exclude them to drive for business use, excluding business use cover will probably decrease the premium.