What is motor trade insurance?

Motor trade insurance policies are designed to cover those who earn their living by selling, buying, repairing or generally doing anything related to cars, vans or motorbikes.

Motor trade insurance provides cover for small, big or even part-time motor traders. There are several different kinds of motor trade insurance policies that vary in features, premiums, and the extent or nature of coverage.
 

Third party insurance

Third party only motor trade insurance is the most basic level of cover legally required if the trader drives his own or a customer's vehicles on a public highway, provides general services of repairing of vehicles, buys and sells cars for profit, operates as a vehicle fitter, valets vehicles or is a mobile tuner, restores and repairs, cars, or operates an MOT station or a garage.

A third party only motor trade insurance policy covers a motor trader for third party injury, third party property damage and third party death caused by any vehicle connected to his trade.

Third party fire and theft motor trade insurance policies covers a trader for all of the above in as well as including cover for damages caused to the motor trader due to fire, accidents, or theft of vehicles connected to the trade, over and above the above-mentioned third party coverage.

Comprehensive motor trade insurance

Comprehensive insurance covers the trader for accidental damages caused to vehicles connected to the motor trade, as well as the above mentioned third party, fire and theft damages.

A liability motor trade insurance policy is specially designed for motor traders who will have the general public within their premises while doing business with them or providing services to them, or if they employ people, restore, repair or service cars, and supply, fit and buy parts.

There are three types of liability insurance; product, sales and service indemnity which includes defective workmanship, public liability, and employers liability.

A combined motor trade insurance policy covers you for money, vehicles, liabilities, premises, tools and contents. This type of policy is an extensive policy that is designed to protect the entire business of a motor trader.

This policy provides cover for motor traders that operate from business locations as well as from home. Every motor trader, regardless of whether they repairs cars, sell cars or clean cars, will need a motor trader insurance policy.