The Insurance Options Available to Motor Traders

Motor traders will purchase a special kind of insurance cover that will provide additional protection. This extends from just insuring the vehicles owned by a business and also includes cover in respect of road cover, fire, and theft for a customer’s vehicle. If you have such a policy and already know how it works then your reason for reading this article might be that you want to know how to obtain the best premium possible.

Motor trade insurance is available from a range of providers, some such as insurance quotes NI specialise in motor trade insurance for (NI) Northern Ireland residents. An insurer that we found which offers competitive motor trader rates can be found at https://www.onesureinsurance.co.uk/motor-trader-insurance. It is not easy to find one because it is a specialist field of insurance despite the number of motor traders out there. There are many motor traders because lots of businesses in some way will handle the cars of their customers.

Insurance for a Business’s Vehicles

A business will look to obtain insurance for its vehicles. These are vehicles that will be used in the course of business. All the employees who are likely to drive them will need to be added to the insurance policy as a named driver. Many of these employees might rarely drive the vehicle, so you will need to think carefully about who to include if they might be increasing the insurance premium in any way.

Drivers that will increase insurance premiums are likely to be those younger, with extensive claims histories, and with any motoring convictions. It depends on how inconvenient it might be not to add them to policies. Then there is the question about whether they should have been employed in the first place if they are going to make the insurance more expensive.

Motor Trader Insurance Policy

What a motor trader insurance policy will then add on top of covering the vehicles owned by a business against loss is a cover that also protects those of its customers. There will be situations where vehicles are on the premises of a business while they are being worked on or waiting to be sold.

Also, situations where the vehicles of customers are on the road but are driven by someone other than their owner. It will be an employee driving because they will be in transit to and from a workshop where the vehicle is to be or has been repaired or serviced. If something should happen to it during this time, it would be for the business caring for the vehicle to pay for any damage or loss. When insured, though, this can be the insurance company. Road cover will, however, always be a legal requirement to protect third-party road users.

It should be noted that motor Trader policies are available for full and part-time motor traders.

Types of Businesses Classed as Motor Traders

We thought that it might be useful to list here many of the various kinds of businesses that rely on motor trader cover. This can help you to decide if you are in that category.

Those overseeing the vehicles of a customer for a time will include:

• Mechanics servicing or repairing vehicles
• Garages offering MOTs.
• Garages offering breakdown services.
• Vehicle delivery firms.
• Valets cleaning vehicles.
• Scrap yards.
• Car showrooms selling vehicles.
• Hotel works might be involved in moving the vehicles of guests staying at a hotel. This is often referred to as “car Jockey insurance”.

This is not an exhaustive list, and you will know if you need the cover because of whether you spend any time with another’s vehicle as a business. If you are a sole trader, then the motor trader cover is still required but only for yourself. The more drivers added to the policy, the higher the premium, particularly if they result in increasing the risk.

Businesses will purchase many different kinds of insurances and, on the vehicle side, which can be a motor trader’s insurance that will cover all vehicles owned and come into contact with in any way. Then there will be commercial premises and other liabilities such as public and employer’s liability to think of too as a business.

Insurers have designed their motor trader policies to cater to the needs of a variety of people that will deal with vehicles as part of their business. They have considered the different eventualities from a worker in transit in vehicles, to those being worked on, and also how there might be a need to keep a vehicle overnight to continue to be worked on the next day. If an urgent job comes in then a mechanic may need to switch to another vehicle or it might be a case of waiting for a part to arrive to complete a repair.

Vehicle damage that is to be assessed by an insurance company might mean a vehicle spending more time in a garage than just one day to repair it. Luxury or classic vehicles may mean that the part is not that easy to get hold of necessarily because it has to be sourced from another country. It might also depend on whether the job comes into the garage at a weekend.

We can be thankful for specialist motor trader policies when cars are our business. We have limited options to find a good price, though, but they are out there on the internet.