Owning a motor business, such as a mechanical workshop or car dealership, means that you need to protect your vehicles, your customer vehicles and your reputation. Reputation is imperative in this market and by not dealing with a claim properly you could find that your business doesn’t last very long. This is why motor trade insurance can protect you when you need it most.
Getting good cover for your business can save you lots of money in the long run. As a trader you will need to drive client vehicles to see what work needs doing and drive them again once work is complete. Now while the only cover required by law is basic third party cover, it is obvious to anyone that this will not be enough should you be involved in an accident.
The UK works on the TORT system which means that should you be responsible for an accident you are financially liable for all the costs for repairs, medical and building that you may have damaged. As a business damaging a client’s car if you only have the basic cover leaves you paying for that car out of your own pocket – possibly putting major financial strain on you.
Choose a number of staff members to help you test drive customers cars and place them on your road risks cover as multiple drivers. As long as they are over twenty five and have clean(ish!) licences your premiums won’t be hit as hard as if they are younger drivers who are considered a high risk to insurance companies.
You can include your spouse and private vehicles onto your business policy, which means you can save even more money and do away with your private cover all together.
If you are a car dealer, whether on a full or part time basis, this type of cover can protect your business as much as it would a mechanical workshop. If you are buying cars with the intention to sell, all your hard earned money is sitting in those for sale vehicles. You will need to drive the vehicles to ensure they are good enough to purchase. Also, potential customers will want to drive them before buying to ensure they are what they want. For this you need demonstration cover, it protects your assets and ensures that all financials are paid should you client be involved in an accident while test driving a car.
Owning a motor business is hard work. Your reputation needs to be impeccable in order to get repeat business and referrals, which you probably rely on. Protect your reputation, customer vehicles and your own vehicles with a motor traders insurance policy.