The motor trader is a business that relies on insurance to protect its interests and those of its customers. This type of business covers the sale and purchase of motor vehicles as well as those working on them. Because of the nature of this business, motor traders need to have cover for their customers’ vehicles. In addition, motor traders need to be aware of the different types of insurance policies available to them and how these can be used to protect their business.
The motor trader policies with one sure can cater to a range of businesses under the umbrella of the motor trader.
There are two main types of motor trade insurance: road risk cover and combined motor trade insurance.
Road Risk Cover
Road risk cover is the most common type of motor trade insurance and it covers the motor trader for any damage that may occur to a customer’s vehicle while it is being driven on the road. This type of cover is essential for motor traders who deal with customer vehicles regularly.
Combined Motor Trade Insurance
Combined motor trade insurance is a policy that covers the motor trader for both road risk and public liability. This type of policy is suitable for motor traders who have their premises and who deal frequently with customers. Combined motor trade insurance provides cover for the motor trader if a customer is injured or their property is damaged while on the premises of the motor trader.
There are several things to consider when choosing motor trade insurance. The most important thing to consider is the level of cover you need. This will depend on the type of motor trade business you operate and the level of risk you are willing to take. It is also important to consider the excess you are willing to pay in the event of a claim. The excess is the amount of money you will have to pay towards a claim.
When choosing motor trade insurance, it is important to shop around and compare policies. It is also important to read the policy documents carefully to make sure you understand the cover.
Types of Businesses Benefitting from Motor Trader Cover
Any business defined as in the motor trade can be eligible for motor trader insurance cover.
The types of businesses benefitting from motor trader insurance include:
- Vehicle Repairers
- Car Showrooms
- Car Washes
There are many more instances that we could add to this list.
Motor traders tend to be thought of as those servicing and repairing motor vehicles, although invariably means those selling vehicles too and offering cleaning services. It is an instance where a business operative is in charge of a vehicle that is not necessarily owned by a business, but more likely by a customer, although both can be covered under such a policy.
Motor trader insurance will cover these businesses for their time in charge of the vehicle which is temporarily in their care, whether driving it back and forth between customers as all part of the service or while working on the vehicle. Where vehicles are being repaired, mechanics may need to drive out in customers’ vehicles to test them. When vehicles are being sold, customers may want to test-drive vehicles that as yet they do not own, unless they decide to buy. All this can be covered by insurance.
Those working in the motor trade need to have motor trader insurance to protect their business. This type of insurance covers damage that may occur to a customer’s vehicle while being driven on the road by a member of staff that can be insured. It is also important to consider the excesses that are applied to a particular policy should a claim be made. Combined motor trader insurance policies provide cover should customers end up injured on business premises. When choosing such a policy, it is important to read the policy documents extremely carefully to make sure you understand the cover that is being provided for your business. When the right cover is set up, it becomes a vital part of running a motor trader business and so should not be overlooked or taken lightly.