The motor trade is an exciting and fast-moving business to be in and a diverse industry also. Businesses can range from sole traders working from home and buying and selling cars, to large, nationwide chains with many premises.

Such businesses may be involved purely in buying and selling or may also offer servicing and repair. To accommodate these diverse interests, there is a huge variety of motor trade insurance policies and it is important that you speak to an experienced broker to get the cover you need. While it is a waste of your cash to purchase cover you don’t need, it is also dangerous to be underinsured, so chatting it through with an expert is always a good idea.

Understanding motor trade insurance policies

Two main types of motor trade insurance are those of Roads Risk insurance and a Traders Combined Policy. A Roads Risk policy is designed to cover you for loss or damage to vehicles you don’t own, while they are in your care. This type of policy allows you to drive your customers’, or third party, vehicles for the purpose of conducting your business. This sort of use would include uses like test driving a car before buying it or checking a car drives properly after a repair. It would also cover bumps and scrapes suffered in the workshop. This type of policy could be used for those who either work from home or from premises.

The Traders Combined Policy is tailored for those who work from premises. This can include a number of different options, such as public liability, employers’ liability, business interruption and material damage, in addition to the standard Roads Risk policy. There are also more specialist options, such as protection against loss of an MOT licence or wrongful conversion cover, which protects you against buying a vehicle where the seller is not the rightful owner.

Getting your motor trade insurance right

It is obvious that there is a lot to think about and it is important that you make the right choices. An ‘off the shelf’ policy may be convenient, but you have to check the cover carefully. Clearly, things like MOT licence cover are not needed of you are not an MOT centre. Similarly, the policy must provide cover for all the business activities you do carry out. Talking to an expert motor trade insurance broker will make sure you navigate through all the options and get the right cover for your business.