Working on cars or buying and selling vehicles, can be a part-time passion for many. But even if you have another occupation and working in the motor trade is just a hobby or secondary business, you’ll want to be fully insured. The kind of cover you need and what it might cost varies depending on what you need and on your primary profession, so here are a few things to consider when looking for insurance.
How will your full-time profession impact the cost?
The cost of this cover will be significantly impacted by the type of primary occupation undertaken, and some professions will immediately restrict your ability to even take out a Motor Trade Policy in the first place. Each insurer has different preferences regarding other professions, which means working with a broker who knows the industry is invaluable. Other driving occupations can increase premiums whilst other motor trade-based professions can reduce the cost. Get in touch with a broker early to discuss your situation and see if your current profession is acceptable, to avoid disappointment and wasted time. If you feel the cost of your cover is high, look at other ways to bring it down such as the location of your business, the value of the vehicles you work with, and how many employees are included on the policy.
What needs to be included?
Motor traders work with a variety of vehicles, both their own road vehicles, plus those being worked on, delivered, or used for trade purposes, and your Motor Trade insurance policy will cover all of these. Cover may also need to include your premises and vehicle storage. Check that the material damage section of your insurance covers tools, plant and equipment, plus damage that may occur when vehicles are away at sub-contractors premise or service indemnity.
What level of cover do you need?
Ask your broker about the differences between a Road Risk Motor Trade insurance policy or a Combined Motor Trade insurance policy. For those smaller dealers with no premises or equipment to insure a Road Risk is probably the cheaper and preferred option as this covers you purely to drive the vehicles in your custody or control. We are familiar with the idea of Third Party Only cover versus Comprehensive from private car cover, and the same principles apply. The less comprehensive your cover, the more it could end up costing you if things go wrong and you need to cover the cost from your own pocket. Look at all the options and understand what is included – surprisingly sometimes there is not a huge difference in cost between the two.
Also take advice on what additional products – such as service indemnity, accompanied/ unaccompanied demonstration cover, liability cover or business Interruption – you might need. When in doubt ask the Motor Trade insurance experts on what levels of cover you require.
Checklist
✔ Do you have another profession outside of the motor trade? Detail clearly what this is
✔ Do you need cover to include your premises, vehicle storage and refurbishment?
✔ Have you told your insurer all the details? Full disclosure is essential if you want to ensure the correct cover is in place.
✘ Has your other profession prevented you from securing part-time motor trade cover? Don’t be tempted to pretend to be full-time. This will breach the terms and conditions of your policy, resulting in the cancellation of your policy, any claims being rejected, and possibly impacting your ability to get insurance in the future.
✘ Are you tempted not to bother with insurance as your business is only part time? You may think it’s going to eat into your profits, but do you need to test drive a vehicle, change your personal vehicles constantly incurring costly admin fees. Buying good coverage is essential and if you choose a Motor Trade Road Risk policy you will be covering all vehicles registered in your name as well as in your custody and control for the trade, so if you have more than one personal vehicle, motor trade insurance might be more cost effective
✘ Do you tend to ignore the small print? Using a broker such as Britton Insurance means you’ll be offered the best coverage available to suit your needs and budget. Make sure you discuss what options are available and what level of cover you need and can afford