This is the same as third party only cover, with the addition of cover for the theft of a vehicle, or fire damage caused to a vehicle. This cover allows you to drive any vehicles in your possession in connection with the motor trade, so you can move customers’ vehicles to and from premises, pick up a vehicle you purchase and bring it back to your garage, or test drive a customer’s vehicle following repairs, for example.
While this level of cover offers some additional protection over and above third-party only cover, it is well worth checking to see what the difference in cost is between this level of cover and comprehensive cover – a lot of insurers charge very little more for comprehensive cover these days, or in some cases, may even charge less.
It is also worth bearing in mind that you are only covered for the trade value of any vehicle should it be stolen or suffer damage from fire – and trade values can obviously be less than retail values. There is also an excess applied for each claim, so motor trade insurance should never be considered for anybody not actively trading in the buying and selling, service or repair of vehicles.
Additionally, should your vehicle suffer damage as a result of an accident – including being written off – then you will need the next level of cover (comprehensive) to be fully protected.