If you work within the vehicle industry in any way then you shouldn’t underestimate the importance of having the right motor trade insurance policy. It is vital to the smooth running of your business, but it is equally important that you understand what you need from your policy and therefore, ensure that you are covered adequately.
Not everyone will be able to purchase a traders policy, it is a niche product with some very definitive criteria and restrictions. It goes without saying that to purchase one of these policies, you need to run a business that is working with vehicles. For example, a used car dealership, a valeter or a motor mechanic business. Worryingly, there are many businesses operating in the UK that need traders cover, but are not aware of the requirement. Businesses are putting themselves at unnecessary risk through lack of research into the matter. For example, a trade policy can also extend to businesses such as car scrap dealers, car electricians and sometimes even vehicle sign makers to name a few.
The type of policy you purchase can be as basic or as comprehensive as you feel you require. You may choose to simply cover yourself to drive your customers cars or you may go as far as covering your premises and tools. Often motor trade insurance policies will cover both full time and part time traders.
Please don’t be tempted to apply for this type of policy if you are not in the trade – eg if you have a high performance car that you are struggling to insure. In the past, insurers have been caught out by people abusing the system. They have certainly wised up to this now and it is very unlikely this type of policy would ever slip through the net. Companies will often check for evidence of trading and if evidence cannot be provided the policy would be cancelled. It could also be deemed as attempted fraud and the police may be involved.
Think Insurance, the specialist motor trade insurance provider, urges businesses to do their homework before they purchase a policy. Make sure you have done your research on the company and don’t be tempted to cut corners on the policy. Don’t underestimate the value of your business.
And if you are still not sure whether you need a policy, give us a call! We would be happy to talk you about your business.
We run our company along small brokerage lines so we value your business, never take you for granted, and can always guarantee you we will try our best.