Police forces UK wide are continuing to crack down on car dealers who dis-regard and flout the terms of their motor trade policy.

The police operation named ‘Rogue Trader’ is an intelligence led crack down on those who misuse their insurance policy. Although primarily aimed at Car Dealers, it is across the board on all motor traders.

A spokesman for the Motor Trade Insurers Bureau recently stated ‘A startlingly large number of people are under the misconception that a motor 
trade policy provides insurance cover for 
the vehicle and that anyone can then 
drive it,’

‘This is not the case and anyone caught driving a vehicle who is not covered by the policy is deemed to be breaking the law.’
The punishment for abusing your motor trade policy is a severe as driving without insurance (which effectively is what is happening). Police currently have the powers to seize the vehicle, issue a fixed £300 penalty, charge £150 to recover the vehicle as well as place 6 points on the offenders licence.

Before collecting vehicles, proof of insurance is needed and vehicles not claimed within 14 days will be sold on or crushed. Think twice if you are taking out a customers car as there are no exceptions.

A MIB spokesman said: ‘To comply with the law it is important that dealers using motor trade policies understand the limitations of their policy. They stipulate exactly what motor use is and isn’t covered under the terms of their policy and if 
they’re unsure they should check with 
their provider.’

Advice is that dealers should regularly submit information about cars they stock or need to cover on their traders insurance policy. The police will and do use this information to check what vehicles are actually covered.

‘Perhaps the most shocking fact for motor traders, affecting their business and their customers, is that if their vehicle is seized by police for no insurance, the penalties and recovery are the sole responsibility of the motor trader,’ added the MIB spokesman.

‘The message to those who are using motor trade policies and who may not be familiar with insurance law is: know the limitations of your policy. These are the legal conditions for using a motor trade vehicle.’

If you are unsure about your car dealers insurance policy, you can contact our advisors at any time and they will be happy to assist you.