Are you involved in any of the following activities - or do you work as one of the following - either on a full-time or part-time basis?
- Vehicle sales
- Vehicle servicing and repairs
- Vehicle Body repairer/panel beater
- MOT tests
- Vehicle valeting
- Breakdown recovery
- Vehicle imports
- Scrap dealers/vehicle dismantlers
- Motor engineer
- Vehicle tuner
- Any other trades involving the sale or repair/maintenance of vehicles, for profit
Do you work solely from your home address?
Do you work part-time or full-time?
Does your business allow members of the public on-site?
Do you tow or recover vehicles as part of your business?
Will you be allowing customers to test drive vehicles that you are selling?
Would you like insurance to cover you against losses you may suffer as a result of being sued for defective work you have carried out on a vehicle?
Do you trade from business premises (i.e. your business is not run from your home address)?
Do you own your business premises?
Do you require insurance cover for your tools?
Would you like insurance cover for money stored on your business premises or whilst in transit?
Would you like to be covered against loss of profit caused by disruption to your business following damage to your building or contents?
Do you require cover for goods in transit?
Would you like to protect your No Claims Bonus?
Would you be interested in taking out insurance that protects you if you buy a vehicle from somebody in good faith and it turns out that they are not the rightful owner of the vehicle?
Are you licensed to carry out approved MOT inspections?
Do you provide financial/insurance products (e.g. credit facilities to purchase vehicles) to your customers or offer advice on buying?
If you have certain machinery or plant within your business, there is a legal requirement to ensure it is safe and it is inspected. Would you like to meet this need by including an engineering inspection policy alongside your insurance?
If you run your own business, would you like to be protected against the possibility of legal proceedings against you as an individual, for your actions in your role in the workplace?
Would you like legal assistance, with an appointed solicitor, to recover uninsured losses (i.e. losses not covered under your motor trade insurance policy), including car hire, travel expenses, loss of earnings, clothing, protection of your policy excess, and other expenses not related to your vehicle?
If you trade vehicles, are you happy to add or remove vehicles from the MID using an insurer's website?
You will almost certainly need motor trade insurance, but you may also need to prove that you are involved in the trade. You need to show that you are trading to obtain a profit from your work.
Some things to consider before you buy a policy:
- Some people mistakenly believe that motor trade insurance covers any driver to drive any vehicle, but that is not the case. There are often exclusions and limitations on the vehicles that are covered in much the same way as there are with ordinary private vehicle insurance policies, and your policy may stipulate named drivers.
- Motor trade policies often exclude cover that comes as standard with private vehicle insurance – e.g. windscreen cover – and also will only pay you the trade value of any vehicle (insured on a comprehensive road risks policy) that is written off or stolen, which could be considerably less than the book value of a vehicle on a private motor insurance policy.
- As a minimum, if you drive any vehicles on the road as part of your motor trade business, you will need third-party road risks motor trade insurance.
If you don't buy and sell vehicles or work on repairing, maintaining or disposing of them, then you don't need motor trade insurance. You have to be able to prove that you genuinely work within the motor trade in order to get this type of cover.
If you are looking to insure vehicles for personal use, you should consider private car or private van insurance instead
In order to fully protect your business, you will need to look at traders combined insurance. Traders combined insurance combines road risks insurance, cover for vehicles that are left at your business premises for material damage or theft, and public liability insurance, all in one package. There are a number of optional extras you might like to consider, too. Answer the following questions to tailor the insurance cover that you need.
If you rent your premises, make sure that your landlord has adequate buildings insurance to ensure that, if the building is damaged or destroyed, it can be rebuilt easily. Otherwise, you may wish to take out buildings insurance as part of your motor trade insurance policy.
While it is not compulsory to take out an engineering inspection policy alongside your insurance, it is often a legal requirement to have your machinery and plant inspected to ensure it is safe for use. Should such equipment endanger your staff and have not been inspected and deemed safe, you could jeopardise your right to make an insurance claim; your insurance may be deemed invalid in such circumstances.
There is no obligation to take out Motor Legal Protection insurance, but you may wish to discuss this with an advisor when taking out a new policy or renewing your existing policy. Cover starts at £25 (including Insurance Premium Tax) per annum.
Most of the insurers we deal with will provide you with login details so that you can add or remove vehicles from your policy (and in turn, the MID) through their website.