We all know that you need valid insurance cover to drive on Britain’s roads. It doesn’t matter what the value of your car is, or who you are; you still need insurance cover. But how does it work if you are involved with the motor trade?
Some people wrongly assume that those in the motor trade don’t need insurance. After all; cars change all the time at a dealership and so it would be an admin nightmare trying to arrange new policies on cars each day!
The good news is that you can buy motor trade insurance to solve such problems. In essence, it’s a type of “one policy covers all cars” system that you can get. In today’s blog post, I explore some of the reasons why you might need motor trade insurance for what you do.
Do I need motor trade insurance?
As you might have guessed, it’s a type of policy used by people in the motor trade. But, what constitutes the “motor trade”? The following are typical examples of motor trade businesses:
- Car dealerships;
- Car rental firms;
- Garage services; and
- Vehicle delivery services.
Of course, that is just a small subset of sectors within the motor trade, but you get the idea! When you run a car dealership, for instance, you will have sales people working for you that need to take customers out on test drives. Those sales people and their customers need to get covered by an insurance policy.
And when a new car gets delivered to its customer, the person driving the car needs to have valid insurance cover too.
Does it matter if I run a full-time business?
Not at all. You can get policies even if you run your motor business from home. The only downside for part-timers is that insurers view you as a higher risk. Before you get a policy, make sure you compare motor trade insurance quotes before paying for one.
That way, you won’t end up paying more money than you need to. Also, be sure to check for any exclusions or special terms added to your policy. The last thing you want to do is fall afoul of the law if you’re restricted in what you can do or drive!
Do I need to prove I’m in the motor trade?
The simple answer is yes. Insurance companies want to see evidence that you are running a business within the motor trade. It doesn’t matter if you sell cars for a living, fix them or sell parts for them.
You must provide documentation that shows you are a legitimate motor trade business. Examples of the evidence you might be asked for include copies of customer invoices. Some insurers might even make random checks at your premises just to confirm what you are saying is true!
The latter is done in an effort to cut down on insurance fraud. Yes, it’s rife even within commercial entities too! I hope today’s guide was useful for you today. Thanks for reading it!