Introduction to Motor Traders Insurance - If you mend or repair cars or perhaps buy and sell vehicles then you will require a motor trader’s policy with a minimum of Road Risks Insurance. Some people in the past have tried to motor trade by using the driving other cars extension of a private car insurance policy. This is not correct and if you insurance company discover that you are using your private car insurance policy for business purposes, then you are likely to have any claim refused. There are two basic types of Policy.

Road Risks - This gives the basic Third Party cover and can be extended to cover loss or damage for an additional premium. Insurance cover is provided for insured’s vehicles on a road or parked during the course of a journey and at the private residence of the insured or any named driver. If damage cover is selected the insurer will sometimes specify the maximum value of vehicles. This is normally done in bands of £5000.00.

In order to rate the policy accurately, the insurer or broker may ask you questions about the type of work you carry out, the type of vehicles you work on to see if any “ high risk” vehicles are driven and whether or not you have any special type vehicles that need insuring such as a mobile crane etc.

A further type of Insurance is called Internal Risks and this is designed for owners of garages etc that want to cover their contents and stock and to include Public Liability cover. The internal risks policy can be extended to include Engineering Insurance which is required in respect of lifts & hoists etc where there is a statutory legal requirement for the items to be inspected within a set period of time.

Motor Trade Cover is designed for persons that run legitimate business operations on a full or part time basis for profit either selling vehicles or providing a service relating to the repair or maintenance of motor vehicles. It is not normally available for:-

• Persons that view motor trade as a hobby

• Persons who regularly change vehicle

• Persons that carry our repair for family or friends for no payment or as a favour

• Persons who wish to obtain cover as Private Car Insurance is more expensive

• Persons who wish to obtain Motor Trade Insurance as a cover for other insurance activities.