Motor Trade Help Centre
Looking for the cheapest motor trade insurance policy available?
The motor trade brokers we work with have been insuring traders for decades. We have developed a good reputation for working with many motor trade insurance brokers throughout the country. Working closely with our board of high profile brokers, we constantly evolve to bring the best possible service to you.
Motor Traders Insurance explained
Motor trade cover is required by anyone working within the motor trade industry. Traders Insurance differs from normal cover as it provides protection for any vehicle within your possession at the time.
You will need proof that you are a motor trader with an official business to be accepted for a traders policy.
Basic principles of traders insurance
Some level of cover, with a minimum of road risk cover being legal, it is essential for anyone in the motor trade industry, whether running a garage, buying and selling vehicles or carrying out repairs and servicing.
Motor traders insurance differs from a personal car cover by only naming the driver to be insured, and not a particular vehicle. This is because you are being insured to use any vehicle for motor trade purposes. Whether the vehicle is yours, or a customer’s, if your name is included on the policy, you are covered.
The bare minimum of cover legally required is Third Party, which covers you for any injuries sustained to others or damage to their property in the course of your operations. As well as for traders, it is required for those running an MOT centre or garage, providing repairs, restoring vehicles, and by fitters, valets and mobile tuners.
Traders we cover (but not limited to) are:
- Car and vehicle sales
- Vehicle repairs and servicing
- Vehicle importers
- Vehicle breakers
- Vehicle valeting
- Vehicle breakdown recovery operators
- MOT test garages
- Body repairs
- Mechanical work
- Motor engineering
- Vehicle tuning
With a motor traders insurance policy, will I be insured to drive any car?
No, although an insurance policy is designed to cover more vehicles, it does also come with restrictions. You will need to tell us if you will be driving imports, high-performance cars and unusual vehicles on a regular basis. The car also needs to be associated with your work. This can be picking up client vehicles to be repaired or serviced. It does not include however driving a friends car to the shop and back.
Who is covered to drive on a traders policy?
Any driver that is named on the policy may drive the vehicles for motor trade use. You may get policies that cover any driver over 25 etc but they are more expensive.
There are also certain restrictions. For instance, you can only drive a clients car for motor trade use, you will not be covered for social use on a clients car. You will however be covered on certain vehicles you own for social as well trade use. These may include a works van etc. Always check with your insurer first though as policies may differ.
You may take out demonstration cover, this cover entitles a customer to drive a vehicle in your possession providing someone named on the motor trade policy is with them.
Why do I need a motor traders policy?
If you work in the motoring industry, you will come across increased risk’s where a normal private policy will not cover you. A traders policy also covers you to work with clients cars whereas your private cover will not.
What are the differences between a road risk and combined motor trade insurance policy?
Road risk insurance will allow you to drive vehicles that are in your possession only. It allows for risks associated with the road and road only. Tools may not be covered in this policy with premises not being covered.
A combined motor trade insurance policy however covers a whole lot of areas including premises and employees of yours. It can come with liability and public liability cover if required.
Why is traders insurance more expensive for under 25s?
Like private car insurance, under 25’s are deemed at higher risk of having an accident. This is also backed up by statistical evidence.
How can I save money on my motor trade insurance?
There are several ways to bring down the cost of your traders premium. The best ways is to choose a more basic policy, but this also only offers basic cover and a fully comprehensive policy may not be much more.
You may choose to up your excess, upping your excess means you will pay more in the invent of an accident but it could also save you a few pounds on your policy. Careful drivers with good claims discount often opt this this type of saving.
Keep the number of drivers down on your motor trade insurance policy. If you have more drivers, it is assumed more time will be spent on the roads and therefore increase the risk level.
Only take out cover for what you need, covering a whole bunch of stuff that you don’t require will quickly push up your premium.
Ask if you can mirror your private no claims discount. Some insurers won’t allow this whereas some will. You may also be able to transfer your no claims discount from private policy to your traders policy.
Always make sure though that you have adequate cover, its OK to save a few pounds here and there but never jeopardise your ability to cover an accident should you be to blame.
Save money on your insurance cover How many vehicles must I buy and sell to be a part-time motor trader?
To be considered for a motor trade insurance policy you will need to be trading several vehicles throughout the year and be seen to be making profit from buying and selling. Although you do not need to trade hundreds of vehicles, you insurer will want to see a handful of sales each month.
I repair from home, do I need motor trade insurance?
Yes, even if you work from home you will still need traders insurance. As a mechanic by trade, regardless of where you trade from, you will still be dealing with other peoples cars and likely to be driving them up and down the road to test drive your repair work.
A traders policy for working from home is likely to be cheaper and there is a lower risk associated with the work location but your activity with other vehicles will still mean you need a motor trade policy.
Can I use my private no claims discount on my motor traders cover?
Yes, most insurers will allow your to transfer your private no claims discount to your traders insurance. This does however mean you are likely to forfeit your no claims on your private policy. Some insurers however do allow you to mirror your no claims discount.
Are there restrictions for covering vehicles?
Yes, every policy will have restrictions. High-performance, high-value or imported vehicles are unlikely to be covered. You can however ask for add-ons to your policy to enable you to drive these vehicles.
Will a range of motor trade insurance quotes be on offer or are you tied to one insurer?
Riscx will have access to a wide range of motor trade quotations. We work with an extensive board of high profile insurers to help bring you the best policy.
We will of course provide you with the cheapest quote based on your motor trade requirements but can always change policy type or insurer at any stage.