Motor Trade Insurance: A Definitive Guide

Are you looking forward to being a part of the motor industry soon? Irrespective of whether you are running the business on full time or part time basis, you should ensure that you are purchasing an adequate insurance cover. A motor trade insurance policy should ideally cover a lot of aspects including the building you are working from (fire, storm, theft and other damages), third party policies covering accidents while driving, employers’ liability cover among others. The motor industry remains a risky business since one is driving customer vehicles and anyone who wants to be a part of this industry should acquaint himself with the nuances of motor trade insurance.

Motor Trade Insurance: What you should find out about it

You cannot expect to drive on the British roads legally without purchasing a motor trade insurance cover. Alternately known as Road Risks Insurance, the third party cover includes regular vehicles such as cars and vans. However, if you are working with larger vehicles (those more than 3.5 tonnes) you can speak to your broker especially about this particular cover as well.

There is hardly any motor business in the United Kingdom which can actually function without sufficient public liability cover. This cover is designed to protect you in the event of any customer or visitor suffering an accident within your premises. Let us tell you that you will be held legally responsible even if the accident is engendered by an oil spill on the floor. It is very difficult to figure out the exact costs of publicliability beforehand since they vary with varying consequences- medical expenses, loss of income and mental distress among others.

Demo cover, very interestingly is designed for prospects who have demonstrated interest in purchasing vehicles and are keen on test drives.

Motor insurance for part time traders

If you are not working on a full time basis but only during weekends or evenings and are also charging less than that of the bigger garages then you can talk to your broker regarding a policy which entails other occupations like associatedtrades as well.


When you are just initiating a business you might be tempted to save on your insurance cover. However, make sure you’re not ending up with a worthless policy in your bid to cut down on the cost. A few important aspects to be covered by a comprehensive motor trade insurance policy:
Ø  Road risks
Ø  Material or property damage
Ø  Employers’ Liability (it protects you when one of your staff members is injured)
Ø  Business interruptions whereby you are compelled to halt business operations for a period of time even when you are not at fault

What to keep in mind

Please be sagacious enough to choose a trustworthy insurance company. There is no dearth of insurance companies in UKoffering motor trade insurance. However, you should be prudent enough not to choose an agent or company on random basis – i.e. without surveying the credentials thoroughly. Read online reviews of insurance companies and then settle for their services.


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