Traders Insurance Demonstration Cover Explained

A helpful addition to a Motor Trade Insurance policy can be the inclusion of demonstration cover. Here’s some help if you’re not sure whether it’s for you.

file000530964878Demonstration cover is an endorsement that allows someone who may wish to buy your car test drive the vehicle. You usually have to accompany the purchaser on the test drive by sitting next to them. Another precondition is that the purchaser has a full licence (avoid policies that stipulate an age limit as you never know what aged person would like to buy your car). Generally, the amount of convictions they have on their licence does not matter as long as they hold a valid licence that is not a provisional or has not been revoked.

It sometimes costs a little to add to your policy but many times it comes included for free of charge. Always check what cover you get from your broker – i.e if you have comprehensive cover with your policy then ideally you want comprehensive demonstration cover (not third party only as some may try to fob you off with!)

Demo cover can help make a sale. You have to ask – would you buy a vehicle from someone if you couldn’t first drive the vehicle? One answer is to get the prospective purchaser to use his own insurance but this can be problematic. If they are using their own Driving Other Cars then you definitely need to see proof of this from their insurance documents as a lot of people assume they have the extension but actually do not. Also, if you leave it down to the purchaser can you rely on him to make a claim through his insurance?

The decision is yours at the end of the day and I can understand that a mechanic, a valeter or a recoverydriver has no need of it, but for anyone involved in vehicle selling it’s definitely a worthwhile consideration for your Motor Trade Insurance policy.

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