Motor Trade Insurance Savings

Any person or company that sells cars for a living requires motor trade insurance. At it’s most basic level it may cover a trader to drive a vehicle for both social and business purposes and the cover offered is usually comprehensive, third party fire and theft or third party only.

Due to the nature of this type of business, demonstration cover is usually a necessary requirement and basically covers any demonstration in a vehicle which is being taken for a test drive. There are generally two types of motor trade insurance demonstration cover. There is the cover where the motor trader accompanies the potential purchaser and an alternative cover which covers the purchaser to take the car out by themselves. This could be for one hour or one week but one of the main requirements of allowing this is that the purchasers driving licence and identification must be checked and certain other confirmation procedures may also be needed as proof.

There is also a type of motor trade insurance which is more applicable to people who drive other vehicles but don’t necessarily sell them. These trades usually include mechanics or car valeters. These people need to move other peoples cars around in the course of their business and the type of insurance which is applicable to these people can be split indemnity. This is where they may be able to benefit a certain amount of cover on their own vehicle, ie their van, and another insurance on any another vehicles that they have to drive during the course of the day. It will be recognised by the insurer that any other car that needs to be driven will only be over small distances.

It is sometimes the case that some motor traders, more especially the valeters and mechanics, don’t feel that they need to have this motor trade insurance. It would be a massive mistake not to have it, even if it is usual that a vehicle only has to be driven a few feet. Sods law could typically well mean that something will happen in that short distance and the financial consequences could very well turn out to be devastating.

There are many specialist insurers in this field and as this is another highly competitive market many insurers will cut each others prices in order to obtain business. The main thing to remember is that adequate insurance is taken out for the needs of each particular business.