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Motor Trade Insurance

Comprehensive Cover for Mechanics, Garages, Dealerships & Vehicle Custodians

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Do You Need Motor Trade Insurance?

If you are involved in buying, selling, repairing, or delivering vehicles, you need motor trade insurance. This insurance is vital for anyone handling vehicles in their business. It protects your business, staff, and any vehicles in your care, whether they belong to your company or your customers. With it, you could avoid significant financial losses if something goes wrong. Motor trade insurance is essential for businesses with vehicles in their custody or control. This includes garages, car dealerships, valet services, and breakdown recovery operators. It covers risks like accidental damage, theft, or liability claims, helping you stay protected during daily operations. Even part-time traders need this insurance when buying or selling vehicles for profit. The right cover will allow you to drive and manage those vehicles legally, giving you peace of mind while you run your business. In summary, motor trade insurance is not just a good idea—it's a necessity if you work in the motor trade. It safeguards you, your staff, and your customers, ensuring your business operates smoothly and with fewer risks.

Tailored Protection for Your Motor Trade Business

Every motor trade business has its own insurance needs. Whether buying and selling vehicles part-time or running an MOT business, having the right insurance is crucial for handling unexpected events. At Trade Cloud, we simplify finding the right insurance by comparing quotes from various providers. We help you explore the best options to get the cover that suits your business at competitive prices.

Ways to Lower the Cost of Your

Motor Trade Insurance

Saving on motor trade insurance can significantly affect your business expenses. Here are some practical tips to help reduce your costs while keeping the cover that you need:

Pay Annually

Paying your insurance premium annually rather than monthly can usually save you money. Monthly payments often come with extra fees, so paying in one lump sum can be cheaper.

Tailor Your Cover

Choose a policy that matches your specific needs. Avoid paying for cover you don’t need. For example, if you only need insurance for standard vehicles, skip policies that cover specialist vehicles like high-performance or classic cars.

Increase Your Voluntary Excess

Opt for a higher voluntary excess if it’s manageable. This means you’ll pay more out of pocket for claims, but your premiums will be lower. Make sure the excess amount is affordable for your business.

Implement Security Measures

Improve the security of your vehicles and premises. Measures like secure storage, alarms, and surveillance can lower your insurance premiums by reducing the risk of theft or damage.

Find Your Next Motor Trade Insurance Policy

If your business involves handling vehicles, motor trade insurance is essential. At Trade Cloud, we make it easy to find the right policy. Our free, easy-to-use online comparison service lets you compare quotes from various insurers in just minutes.

Whether you operate a service and repair garage, a car dealership, or a vehicle recovery business, we’ve got you covered. Our comparison service includes policies from insurers that cater to all types of motor trade businesses, helping you find a policy that meets your needs and provides the right level of cover.

Frequently Asked Questions

What is Motor Trade Insurance?

Motor trade insurance is a specialised policy for businesses and individuals involved in buying, selling, repairing, or customising vehicles. It provides cover tailored to the specific risks of the motor trade industry. Whether your business operates full-time or part-time, having this insurance is essential to protect your business. It is ideal for mechanics, car dealerships, vehicle valets, and recovery truck operators. Tailored options like combined motor trade insurance offer comprehensive cover that meets your business needs, giving you peace of mind.

Is Motor Trade Insurance Mandatory?

Yes, motor trade insurance is mandatory if you drive vehicles as part of your business. As a minimum, you need third-party cover on a road risk policy to drive legally. However, it's more prudent that you choose a higher level of cover. Comprehensive road risk insurance or a combined policy can offer better protection for your business, helping to safeguard against potential financial and legal issues in case of an accident or other incidents.

How Much Does Motor Trade Insurance Cost?

The cost of motor trade insurance depends on several factors, including:

The Level of Cover: More comprehensive policies usually mean higher premiums.
No-Claims History: A clean record can help reduce your insurance costs.
Voluntary Excess: A higher excess can lower your premium, though you'll pay more out of pocket for claims.
Risks to Cover: The specific risks your business needs to protect against can affect the cost.

At Trade Cloud, we make comparing quotes from experienced insurers easy. Whether you're looking for a full traders' combined policy or the most affordable road risk cover, our comparison service helps you find the best value for your needs.

Are There Different Types of Motor Trade Policies?

Yes, there are different types of motor trade insurance policies to suit various business needs:

Road Risk-Only Insurance

This is the minimum legal requirement. It covers loss or damage to third-party vehicles while driving on public roads, but not theft, fire or driving on private land. This policy suits businesses that mainly buy, sell, or trade vehicles from home. It also lets you manage your vehicles on the Motor Insurance Database (MID), keeping your insurance valid.

Combined Motor Trade Insurance

This option provides more comprehensive cover, including protection for your vehicles and customers. It covers additional risks, such as during repairs or while vehicles are in your custody. This policy is ideal for businesses with higher risk or those operating from separate premises.

Choosing the right policy depends on your specific business activities and needs. Our comparison service can help you find the best policy to fit your requirements.

What Road Risk Cover Can I Choose From?

When selecting a Road Risk-Only policy, you have several levels of cover:

Third-Party Insurance

This basic cover protects against injury or death caused to a third party and damage to their property by any vehicle listed on your policy. It's essential for legal compliance and basic protection.

Third-Party Fire and Theft

Third-party fire and Theft extends the basic cover by including protection for your customers' vehicles in case of fire or theft.

Comprehensive Insurance

Comprehensive cover includes everything in Third-Party Fire and Theft, plus protection against accidental damage to your vehicles/vehicles in your care and personal injury. Some policies may also offer vandalism and windscreen cover, though this varies by insurer.

Combined Motor Trade Insurance

For the most extensive protection, a combined policy offers a wide range of cover tailored to your business needs. This type of insurance is ideal if you need extensive coverage for various risks associated with your motor trade operations.

Choosing the right cover depends on your business activities and specific risks.