Tips and Suggestions for Motor Trade Insurance

You will definitely need adequate insurance if you are involved in trading cars, but you might not know what cover you need and why, so here are some tips.

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Be Prepared

Prospects for motor dealers are healthy, and there have been increases in the number of contract hire agreements being taken out in the past year, but it is essential that you still prepare for potential challenges, so having an adequate motor trade insurance policy to protect your business is very wise.

Road Risks Insurance

Road risks insurance can provide the cover that is a legal requirement for driving all of the cars that you have in your possession. It can cover all vehicles regardless of their individual VRMs, but make sure your insurer knows the type and value of the cars; high-value performance cars will cost more to cover. All drivers need to be named, so keep on top of it and update the policy as staff members change. As stated in Car Dealer Magazine, you need to keep your insurers up to date with all details.

Liabilities Insurance

Have cover to ensure you can protect yourself in the event of a customer being injured or their property being damaged and them then suing you for compensation. Claims such as this can involve huge sums of money, and most insurance policies such as those provided by will provide at least £1 million to £5 million or more for such instances.

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Liability insurance can also provide you with cover needed for potential claims from customers regarding issues with defective workmanship on vehicles that you have serviced or repaired.

Don’t forget employers’ liability insurance. This is a legal requirement, and it is needed to cover potential successful claims from employees in circumstances where they have been injured at work or developed a long-term illness from their work whilst employed by you.

Premises, Stock, Tools and Equipment

Make sure your policy covers all of your trading needs: your stock, the premises, your customers’ cars and all of your equipment and tools needed to trade. Regardless of how heavily involved in the motor trade you are – running a full-time business or simply selling the odd car in your own time – you will certainly need to ensure you have adequate cover.


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