If you regularly work with different types of vehicles, you could very well benefit from the right kind of insurance policy. Motor trade insurance has been specifically designed for those who are involved in the motor trade industry, and you can take advantage of this type of policy if you want to protect yourself and your vehicles, your customers, your premises, and more. In essence, you should have motor trade insurance if you want your business to fulfil its legal requirements, but the question is, what kind of motor trade insurance should you choose? Also, how can motor trade insurance really help you? Here, your top questions are answered.
What it is – and why you need it
As already mentioned, you need to have motor trade insurance if you want to operate legally as an entrepreneur or business. It is a legal requirement in the UK based on the Road Traffic Act of 1988. If you are driving on a road in the UK or are in a public area or space, you will be guilty of breaking the law if you don’t have motor trade insurance. If you are caught, you will have to pay a penalty (£300) as well as get six points on your licence. But the more important thing is, if your case goes to court, you could very well receive a fine that is unlimited and not be allowed to drive, either. For you to legally drive on the road, you need, at the very least, ‘third party only’ coverage, and this can cover the damage to another vehicle if there is an accident.
Who needs it?
The general rule is that if you sell or repair as well as clean or transport vehicles, you would need this type of insurance. Motor trade insurance is necessary, for instance, if you are a tyre fitter, work in vehicle or car sales, are a mechanic or a car valet, have a body shop, work as an airport jockey for vehicles, recover vehicles, or own a car garage. It also doesn’t make a difference if you operate full-time or only part-time; you will still need to have motor trade insurance. But there are more specific types of motor trade insurance policies, and the following are some examples:
- Vehicle sales insurance – this is for those who sell cars or other vehicles, whether part-time or full-time. The types and values of the cars you sell may also affect your insurance premium.
- Mechanics and body shop insurance – this is for those who repair vehicles, and it also includes mobile car mechanics. You would need this whether you operate from your own property or garage or a particularbusiness location. The level of cover you get will also depend on how big your business is.
- Tyre fitter insurance – if you are a tyre fitter, you would need protection as well, regardless of if your operation is small or large.
- Vehicle recovery insurance – this type of insurance will cover those who collect vehicles which have been in an accident or have broken down.
- Valeting insurance – with this type of cover, you can protect yourself if you work as a detailer or valeter, whether you work from home, work at specific premises, or have a contract with a garage or dealer.
- MOT garage and car garage insurance – this is for those who run MOT test centres or a car garage; the policy can include machinery and tool coverage as well.
It is essential to find out precisely what you need for your specific type of profession or business; for this, help from an experienced and reputable motor trade insurer can always come in handy. With the proper insurance, you can protect yourself, your business, and your operations, lessen your risks, and have better peace of mind.