What does motor trade insurance cover me for?
There are two elements to motor trade insurance: road risks insurance – which everyone involved in the motor trade must have – and traders combined insurance. Let’s look at road risks insurance first.
To some extent, it’s easier to say what you are not covered for than what you are. We are often asked ‘Am I insured to drive any car on a road risks motor trade insurance policy?’ and the answer is most often ‘no.’ The reason is that there are limitations and exclusions on policies, so you should not assume that you can drive any vehicle that you carry a driving licence to operate. You will need to check your traders insurance policy carefully to see exactly what you will be covered for, and it is worth looking at this when you compare online motor trade insurance quotes with Quote Generator.
Some vehicles – particularly high performance or highvalue models, or imported vehicles – could be excluded, unless there are specific extensions on your policy to cover them. You need to let us know the type of vehicles you will be driving and/or trading in order for us to ensure you are adequately covered on your insurance. This is particularly true of younger motor traders, who will find more restrictions in place due to their lack of experience and the higher level of risk of accidents witnessed by insurers.
Only drivers that are named on your policy are covered for motor trade use. It is not the case that any driver can drive vehicles on your policy.
There are also restrictions to cover – specifically, you can only drive a customer’s vehicle for motor trade use. In certain cases, you can drive a vehicle that you own for social domestic and pleasure use, or for additional business use (e.g. if you work as a part-time motor trader and have a van that you use in conjunction with your work as a builder). We need to be aware of your circumstances to ensure that you are covered for this, if you need it.
Additionally, you will only be covered for the trade value of any vehicle – not the full purchase price, which could be significantly higher for some vehicles. This makes sense, because your insurance is designed to protect your outlay
Where cover is in place, you will be covered on your road risks policy while driving on a public highway, including driving vehicles to and from auction houses, for example.
What you are not covered for on a road risks policy is any protection for your business premises, your employees, or members of the public that you come into contact with as part of your day-to-day motor trade business. You will also not get business interruption insurance, to help you out if your business suffers due to circumstances beyond your control (such as flooding), and you lose income as a result. For these to be covered on one policy, you will need traders combined insurance, which offers the widest motor trade insurance cover possible to protect all of your business assets. Find out more about traders combined insurance.