What is Motor Trade Insurance?
Motor Trade Insurance, also known as ‘traders insurance ’, is an essential form of insurance policy that allows you to work within the motoring industry. If you earn money from buying and selling or repairing vehicles or other areas within the motor trade industry, then you require a motor trade policy.
Understanding the Types of Cover
Traders Insurance is a legal necessity for anyone that works within the motoring industry and uses other vehicles or is responsible for customer vehicles. Whether you repair vehicles, clean cars or sell motors (part time or full time), a motor traders policy is a legal requirement.
Policies come in 2 main forms.
Road Risk Insurance
Road Risk Only Insurance covers you to be able to drive the vehicles on the road. Much like a private car insurance, road risk only comes in either Third Party or Comprehensive. Comprehensive cover will also cover you against fire, theft, vandalism and accidental damage.
A Road Risk policy will enable you to trade from home but will not cover a business premise.
Combined Motor Trade Policy
Combined Premises, also known as a Combined Motor Trade Policy, is essential cover for trading from a business premises.
If you trade from an address different to your home address, this will be the policy type you need.
Both policies can be tailored to include a level of Public and Employers Liability. When we connect you with the best broker, make sure you ask them for these levels to ensure you have enough protection.
Why Compare Traders Insurance through us
Here we strive to ensure that comparing policies is fast, effective and efficient. Our brokers are constantly searching for the best prices to save you money, which is why they are amongst the most competitive in the market place and are incredibly flexible with their policies and payment plans.
Our brokers fully tailor their policy to suit your own personal needs, and offer optional breakdown and personal cover, as well as the option for instant cover, meaning that you can be fully insured within a matter of minutes.
motortraderinsurance.co.uk is proud of its efficiency when it comes to finding you the perfect quote. We know that finding a policy can be incredibly tedious and drawn out and we pride ourselves on our customer satisfaction.
Our expert brokers work closely with the likes of Policy Plan, Tradewise & Tradex to bring you the best possible cover protection.
What can our motor trade brokers help you with?
Our brokers will help you with
• Exclusive rates
• Specialist motor trade cover
• Instant cover
• Fast documentation.
• UK call centers with well trained advisors
• Flexible payment plans
They will provide cover for
• Road Risk Insurance
• Combined Motor Trade Insurance
• Car Trade Insurance
• Traders Insurance
• Service, MOT and Repair garages
• Vehicle Body Builders
• Private and Commercial Vehicle Repairers
• Part Time Traders
• Vehicle Breakdown & Recovery Agents
• Vehicle Collection & Delivery Agents
• Mobile Mechanics
• Body Shops
• Many more
Understanding The Elements of a Motor Trade policy
Your motor trade insurance policy will have many sections to it. Here though we have provided a quick break down of some of the main parts to keep an eye out for.
Combined Premises Cover
Should you operate from a premises that is NOT your home, you will need to apply for a combined policy and ensure that when speaking with an advisor, that they know a combined motor trade insurance is required.
Road Risk Only
This cover will cover you ONLY for the vehicles are your home and will not cover any separate premises.
This element will have more of an effect on part time traders who have a full time job with a separate employer. Additional cover can be written into your policy to cover other occupations BUT you must inform the broker of your intentions. Cover for other occupations does NOT come as standard.
Vehicle Value Payouts
The majority of underwriters will only payout trade value on vehicles and not the resale value of the vehicle. This will leave you with a shortfall in vehicle value. Check with your broker if full vehicle value is available. Should a vehicle be stolen, you will have a better chance and not being left out of pocket.
It is quite normal to add or need additional drivers on your policy. It is worth noting though that adding drivers under the age of 25 to your traders policy will cause it to rise considerably. Adding any driver will increase the premium but typically the older and more experienced they are, the less of an increase.
Making Sure You Are a Genuine Trader
Before applying for a motor trader insurance policy, you should first ensure that you qualify as a trader. We see a number of people who try to apply for a traders policy but do not actually qualify.
Do I Qualify as a Motor Trader?
You will qualify as a trader if you have a financial investment in the motor trade industry. A financial investment can be anything from stock of cars, tools to carry out vehicle repairs or parts for vehicles that you then go on to fit.
This applies to both Full Time and Part Time Traders as both, if qualifying will have financial investment in the industry.
On talking with our brokers, you may be asked to prove your connection with the motor trade industry through invoices for parts you have bought or receipts for vehicles you have sold. As a properly run business, you should be keeping all invoices and receipts you generate in connection with the Motor Trade.
You will be given on average 14 to 28 days to produce evidence of your motor trade connection so don’t worry too much if you don’t have it to hand at the point of application.
How to Save Money on your Motor Trade Insurance
Shopping around is essential in cutting the cost of your motor trade insurance. If you simply just renew your policy, it is likely you will find you end up paying more than you needed to. We can help you find the cheapest policy by simply calling or applying online.
Consult our Specialist Brokers
Our motor trade insurance brokers employ well trained and knowledgeable staff whose job it is to find you the best policy for you.
Check your clauses
Some underwriters will include additional cover that is not necessarily needed by your business and therefore you will be paying extra for cover that you simply do not need. These can often include Classic, HGV or High Performance cover. If you don’t work with these types of vehicle, then you can ask to have these removed if they are added.
Transfer or Mirror your NCB
If you are new to the motor trade and it will be the first time you require a motor trade insurance policy, then typically, brokers will allow a private no claims, bonus to be transferred onto a traders policy. This usually means that you will forfeit your private no claims bonus as a result. Here, our brokers have the ability to mirror your existing no claims discount if you meet their criteria. It only takes a minute or two to find out whether you could be saving up to 60% on your motor trade insurance policy.
Reduce Stock Level Indemnity
Reducing the level of vehicles you have on MID at any one time will lower the cost of you policy quite significantly. Your agreed indemnity ( the value of the vehicles you have on cover ) has a direct correlation to your premium.
Keep Records Clean
Often, traders will need to employ multiple drivers on their policy. It is good practice to only employ those with a clean license OR only insure those with a clean license. By only insuring those with a clean record, will reduce the level of insurance risk associated with your policy.
Keep drivers over 25
Insuring drivers under 25 is very costly for any policy. The level of risk associated with any driver under 25 will cause any policy to creep up.
Consider a higher voluntary excess
By applying a higher voluntary excess to your traders insurance, you can help bring down the annual premium.
Avoid Modified & Imported Vehicles
If you can avoid dealing with modified or imported cars or vehicles, you will help reduce the risk factor in association with your cover and therefore bring down the cost of the premium.
Improve Security Measures
Invest in improving the security measures around your business. By having improved security, you reduce the chances of vandalism or theft from your forecourt or garage.
Forecourt Security Cameras
Having security cameras monitor your tools or forecourt will help detour any individual from damaging or stealing your cars or equipment.
Installing bollards on your sales garage will make it extremely difficult for vehicles to be stolen.
Fence in your Car Dealership
By implementing a perimeter fence, you can control who can and cannot walk around your dealership. It also prevents people being able to walk around your vehicles when you are not on site at night etc.
Like private car insurance, pay for the policy in one lump sum. This avoids any interest and admin fees you may incur through gaining your policy through monthly instalments.
Build up your Motor Trade NCB
By building up your motor trader no claims bonus, you present yourself as a low risk trader and therefore will benefit from a cheap motor trade insurance.
What motor traders can we find cover for?
In a nut shell, all of them. Our brokers can help find cover for all traders including valeters, mechanics, car dealers, mobile mechanics, car servicing stations, windscreen fitters, body repair garages and more.