Motor Trade & Road Risk Insurance
What is included motor trade & road risk insurance?
Motor Trade Road Risks insurance is specifically designed for motor traders operating full time or part time hours either running from their home or business premises. This type of insurance covers trader’s own vehicles or vehicles in their custody or control for motor trade purposes.
What is covered by Motor Trade Road Risks insurance:-
- Vehicles owned by you or your spouse. If they are named driver on the policy
- Or customer’s vehicles whilst in the trader’s care custody or control, but only for motor trade use.
- Or trade vehicles if they buying and selling cars. However, if the trader chooses Third Part, Fire & Theft or Comprehensive cover. However the value would be based on ‘trade’ not ‘retail’ prices.
The policy will not define vehicles by specific registration number. However when taking out the policy you will need to tell us the vehicles owned by the trader which is used for trade or own use.
What you need to consider:-
- Who owns the vehicle? This type of policy only covers vehicles owned by you or your spouse (if they are a named driver under the policy). This is for vehicles in your care, custody and control for motor trade purposes.
- Who can drive? Drivers named on the insurance policy document are covered. Unless accompanied demonstration use is already included.
- What the vehicle is to be used for? Use of your customer’s vehicles used only in connection with the motor trade policy.
- What type of vehicles do you work with? It is important that the trader tell us all the types of vehicles they work with. This is to ensure that the right type of cover is implemented. Certain types of vehicles are excluded unless mentioned in cover policy. For non-standard types of vehicles the trader must tell us of any; modifications, kit, Q plates, grey imports, classics, commercial vehicles, camper vans etc has had.
We can offer a various types of cover and the type of cover will depend on your type of work you do and risk to attitude:-
Options and extras you can take are:-
- Accompanied demonstration usage – this is when you buy and sell vehicles; this allows your customers to test drive the vehicles.
- Levels of cover – Third Party Only, Third Party Fire & Theft or Comprehensive.
- Vehicles in transit – this is for vehicles on the move e.g. recovery truck or trailer. Our standard policy will cover for insurance with minimum requirement. If you have Comprehensive cover then you can take the option to cover for vehicles in transit.
- Vehicles at business premises – this is for vehicles in sales conducted from commercial premises. The trader may want to extend the Comprehensive policy that would cover vehicles whilst left on the business premises. But if you trade from home then this cover is automatically included.
- Legal solutions for motoring – this is optional add on product which covers for legal costs and expenses incurred when there is a claim from a non-fault accident involving and insured vehicle.
- NCB/Protected No Claims Bonus – NCB can make a big difference to your premium, but it can quickly be lost, even if the accidents are not your fault. Why not protect it, for a small additional premium?
Road Risk & Premises Combined
This type of insurance policy is for traders conducting trade from care sales forecourt, a service and repair garage or a valet station. When motor traders conduct business from premises, road risk insurance cover may not always be the ideal option. When opening a new business the trader will have to purchase tools and equipment to do the work. The trader may also maintain certain levels of stock. Trading from premises will bring additional risks to the building due to damage caused.
This is when combined policy covers against damage caused to the property that is owned by the motor trader as well as their liability exposure.
Combined policy can cover against the following:-
- Liability – EL, PL, Products
- Tools that is used for the purpose of working as a motor trader
- Damage caused to the business premises where it is owned by the trader or is liable under the terms of lease for repairs.
- Contents on the business premises e.g. plant, machinery, fixtures and fittings
- Damage caused to the vehicles that are left on premises, whether this is stock or owned for personal usage.
- Road risk cover
- Public liability
- Tools, buildings and equipment