Motor trader insurance is an extension of motor insurance that covers businesses so that their employees can drive the vehicles of their customers that they are working on or selling.
In this article, we will look at motor trader insurance that is provided by companies such as one sure insurance to further explore why it is different from just motor insurance and to explore the kinds of businesses that make use of it.
How is Motor Trade Defined?
By definition, motor trade is the business of buying and selling cars as well as other road vehicles. As a motor trader, a person is allowed to drive the vehicles that are temporarily in their possession without having to register or tax them each time. A motor trader can drive a vehicle on what is termed a trade plate which registers them to drive any customer’s vehicle on the public road.
The good news for motor traders is that specialist insurance is available that covers these activities and protects their legal liability and any damage that might happen to a customer’s car.
If you fit into this category or know someone who does, then the insurer mentioned above offers this kind of specialist insurance. It might be a specialist area but competitive quotations can still be obtained.
The Factors Insurers Consider with Motor Trader Insurance
Insurers will look at many factors when offering quotations to a motor trader as defined above. They will need to assess the size of the business that they are insuring. This is achieved by establishing the number of employees that are on the payroll, along with the number of vehicles in the possession of the business at any one time, including those vehicles owned for use in the business. With all this taken into consideration, an accurate quotation can then be provided.
Can a Motor Trader Drive Any Car?
Many motor trader policies will insure those connected with the business to drive any of the vehicles that are in the possession of the company. However, there can be restrictions on certain types of vehicles. The types of vehicles to check on because they might not be covered, might include sports cars or luxury cars, as these are considered higher risk.
The vehicle being driven on a trade plate will still need to have a valid MOT certificate, unless it is being driven to an MOT testing station, having been booked there in advance. The MOT certificate is something that the owner should have taken care of so as not to get caught out driving a vehicle that does not have one.
What Types of Businesses Make Use of Motor Trader Insurance Policies?
The types of business situations that will make use of motor trader insurance include garages, car showrooms, mobile mechanics, repair shops, valeting services, and auction houses. It is any situation where a car owned by another needs to be moved from one location to another in the working day. It provides that protection to companies should damage occur in respect of any of the vehicles being moved around. Perhaps whilst being delivered to the address of their owners. Although, just moving a vehicle a short distance can be all that it takes for damage to occur which is costly to put right.
To conclude, motor trade insurance is all about protection when driving a vehicle that is owned by a customer. That is not a friend’s car, where you should be the named driver, but where a business is looking after the cars of its customers as part of selling or repairing them. It is an essential policy so that cars are covered should they sustain any damage in the event of an accident.