There has been over recent years, an increase in business start-ups in car valeting and mobile car valeting. Those new to the business may wonder whether car valets need motor trade insurance. Some ambitious individuals or groups of individuals may set up their own enterprise whilst others buy into a business franchise – offering opportunities to run their own potentially lucrative local valeting business with start up packages and `ready made` business solutions (such as branding, promotions, policies and procedures etc). Despite this growth in numbers, many such enterprises do seem to be heavily used, with long queues of motorists soon developing at most outlets. In the UK, there are over 30 million cars on the road, with most families having two cars, and the average
motorist covering around 12,000 miles per year. There is likely to be a good business case for further growth in the car valeting business over many years to come and the answer is yes, car valets will generally need Motor Trade Insurance.
Car Valets may on occasion need to be able to drive a customer’s vehicle from one place to another, or deliver it back home. Because of this most car valets need to take out motor trade insurance to cover the value of the vehicles they are driving. Indemnity is the maximum value of payout you will receive from any fault accident or theft (non-fault claims can payout more under the right circumstances). Car valets can have an insurance policy that covers their own personal vehicle at one value and customers at another (higher) level – this is called a split indemnity and is generally cheaper than just having one high level of cover.
If you are considering operating in this industry then you may wish to explore commercial vehicles as well as the domestic market. Some valet services targe the industrial units in their area and include special offers such as 4 cars for the price of 3 & 8 cars for the price of 6 etc. Taxis, coaches, hire car fleets, and undertakers can also help grow the business – volume can grow profitability
Indemnity on motor trade insurance is often set at stepped levels – usually starting at £2,500 and ending up to £40 or £50k. The higher you go the higher the cost so don’t forget to ask for a split indemnity quote from your Motor Trade Insurance Broker.