Why Does Motor Trade Car Insurance Differ from Private Car Insurance?

Motor trade car insurance is required by all businesses in the motor trade industry that operate a regular service year-round. That might seem like an obvious thing to say, but there have been a number of cases where people think a motor trade insurance policy would be better for their circumstances rather than private cover.

In fact, perhaps the biggest reason for someone opting for motor trade insurance rather than private car insurance is due to a common misconception: a motor trade insurance policy does not cover you to drive multiple vehicles for personal use. You won’t be able to hop behind the wheel of a friend or a relative’s car and be covered while driving.

One feature of road risks insurance (a form of insurance also found as part of traders combined cover) allows the policyholder—as well as any other named drivers—to drive a customer’s vehicle purely for business purposes. This could be when driving a car from the driveway to the garage, or picking up a customer’s vehicle for repair work.

This doesn’t mean you are allowed to use a customer’s vehicle to go to the shops, or to pick the kids up from school. The key phrase here is “for business purposes”. If you are behind the wheel of a customer’s vehicle for any other reason and suffer an accident or incident, you won’t be able to make a claim. You will only be covered on social, domestic and pleasure use for vehicles which you have purchased.

Those looking for protection to cover them when driving vehicles for personal use should clearly look for a private car policy rather than motor trade car insurance.

In the case of motor trade businesses, when is the right time to switch from private car insurance to a motor trade policy?

If you run a full-time business in any aspect of the motor trade, you’ll need motor trade insurance—most likely traders combined insurance. Most part-time businesses will too, with road risks cover on its own perhaps more appropriate in this instance. However, if you do not sell vehicles for a profit on an ongoing basis, or only fix a couple of friends’ vehicles occasionally, it is unlikely that you will require motor trade car insurance.

Before taking out a motor trade policy, you will have to provide some proof that you trade regularly. Booking details, receipts, or business logs might be required to demonstrate this.

For the most part, this is to ensure that people looking to purchase motor trade insurance who do not required it, and should be purchasing private vehicle insurance, are directed to the right product to fit their needs.

If you don’t understand whether or not a motor trade car insurance policy is right for you, be sure to call an expert broker.

Any of the experienced motor trade insurance professionals at ChoiceQuote will be able to offer helpful and straightforward advice to help you get the cover that is right for you. If motor trade insurance is required, they will obtain a number of different quotes that are tailored to your particular business to find the perfect cover at the best available price.