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Do You Have The Correct Motor Trade Insurance?

All motor trade businesses need to make sure that they have adequate motor trade insurance. Having an incorrect motor trade insurance policy can be an unnecessarily expensive and risky situation to get yourself into.

Do I really need to get Motor Trade Insurance?

The short answer is yes! For example, if you’re a motor trader who doesn’t have motor trade road risks insurance and you have an accident in a customer’s vehicle when driving it back from your garage, you are liable  to pay the entirety of the costs - including the customer’s car you were driving and any other damaged vehicles and/or property.
The same applies in the instance that your motor trade premises insurance has expired and torrential rains flood your garage premises. Your vehicle stock is at risk of being destroyed by the flood, as well as the building itself. The cost of repair for something like this is extremely high, and you would have to foot the whole bill yourself without motor trade premises insurance cover.

What happens if I don’t have the correct Motor Trade Insurance?

If you are involved in motor trade work, you need motor trade insurance; it is required by law under the Road Traffic Act 1988. If you don’t have adequate insurance and are caught on a UK road, you may receive a fine of £300 as well as six points on your licence.
You could also face additional legal action and risk getting banned from driving. Having incorrect or inadequate motor trade insurance could cause your premiums to rise in the future.

What Motor Trade Insurance do I need?

Whatever your motor trader occupation, your motor trade cover should be satisfactory for your business. Whether you’re a full or part time motor trader or in car sales, you need motor trade insurance. You can read about who needs motor trade insurance here. Road Runner Insurance currently offers:

●     Motor Trade Road Risks Insurance - you need this if your motor trade business involves having customer vehicles in your possession and control as well as trade vehicles.
●     Motor Trade Liability Insurance - if you have employees in your motor trade business, by law you are required to have Employers’ Liability Insurance.
●     Motor Trade Premises Insurance - you need this if you run your motor trade business from a premises and keep your tools and vehicle stock here.

Levels of cover

By law, you are required to have at least third party insurance cover. The type of cover best suited to you may be dependent on the size of your motor trade business or the types of vehicles you handle if you’re in car sales. If you have a large motor trade business or sell expensive vehicles, comprehensive cover is most likely better than just third party only.
Road Runner Insurance offers the following: Third Party only, Third Party Fire & Theft or Comprehensive as well as optional additional extras, so you can truly get the most out of your motor trade policy.

Get a Motor Trade Insurance quote

If you’d like to take out a motor trade policy with us, please request a quote. You can do this here, or alternatively can call our friendly team on 03301 00 87 20. 

Road Runner is a trading name of Aston Scott Ltd. Authorised and regulated by the Financial Conduct Authority (Reg No. 308048). For your protection, telephone calls may be recorded or monitored.

Copyright © Aston Scott Ltd 2015. All rights reserved. Road Runner, 28 Dingwall Road, Croydon, CR0 2NH. Tel: 0330 822 0468

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