Everything You Need To Know For a Healthy Motor Trade Business

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A chance to compare motor trade insurance becomes easy when you know everything about motor trade insurance whether you are new to it or have been trading for years. However, it is significant to know which type of insurance you require. On the other hand, you must have a trade business, to get motor trade insurance thus it delivers coverage for anybody who has a motor trade business. 

  • Breakdown and Recovery operators
  • Vehicle Collection and Delivery Agents
  • Body shops
  • Tyre fitters
  • Valeters
  • Service and repair garages
  • MOT stations
  • Mobile mechanics
  • Car dealers

First, you should have an idea of the various types of insurance regardless of which type of trade you do. As soon as you know the different categories of insurance, you can know the level of coverage policy you need. 

Further motor trade insurance is categorized into three types:

  • Traders combined
  • Road Risk 
  • Liability (Employers & Public)

Coverage for stock of vehicles: If you are running an automobile trade business, you are likely going to store your vehicles. This is especially important if you are selling the vehicles on the forecourt. Different minibus insurance quotes are available depending on the condition of your vehicle. Money Mega Mart helps you in searching for ideal rates. 

Business premises coverage: the place where you sell your cars which can be either a showroom or garage, you are responsible for insuring. On the other hand, if your place is on rent then the landlord may have separate building coverage, however, you must be aware of this.

Equipment and tools insurance: Repairing and replacing specialized tools and machinery can be quite expensive. To prevent being genuinely left without the instruments necessary to do your work, protect your property before obtaining this protection. You can manage your firm when a successful claim is settled promptly.

Have you ever thought of what could happen if you fit a faulty part into the car or sell a car with a good part incorrectly fitted into it? The results would be an injury to the person or damage to the vehicle, thus, product liability would be suitable for this type of loss. Further, the other name is sales and service indemnity insurance 

Engineer Inspection Insurance: If you have selected any plant or machinery for the service or repair of your vehicles, you need these parts to be assured by law. Under these engineering policies, this service gets an extra fee. Thus ensuring you are following the standards set by law. 

Money/ Financial Coverage: This coverage is suitable if you have money stored on the site, there is a chance that money can be caught by thieves, hence having this insurance will save you from a major loss like this. 

Loss of License Cover: you will need a license to operate the MOT testing station. In this case, losing the license ultimately results in the loss of valuable income. Furthermore, if the Ministry of Transport is the only service you deliver, then you cannot have the chance to trade. 

Management Liability Cover:  Just as your business security is important your safety is essential too. In some cases, any claim against you can be made if something goes wrong in the company. Hence, this type of insurance saves you from personal loss. 

Insurance for motor traders’ employers’ and public liability

Public liability insurance may be very helpful to you because your motor trade business involves interacting with the general public. It provides insurance if a member of the public gets hurt on your property or while working for you. For instance, someone might trip or fall in your workshop.

This type of protection is available as an add-on to road hazards-only insurance or as a component of a combination policy for traders.

Usually, employers’ liability insurance is included in the same package. This is a legal necessity for anyone hiring someone to do services on their behalf, like a mechanic. It offers protection against workplace injuries sustained by staff members.

Difference Between Full-Time & Part-Time Motor Trade Insurance 

The majority of part-timers operate from home. As a side gig to your primary employment, you might sell a few cars or work occasionally as a recovery driver or mobile mechanic.

It is increasingly common for full-time dealers to operate from commercial spaces. You might own a showroom, a storage facility, a garage, or a forecourt.

Insurance For Road Risk 

Take into account raising the optional excess on your policy for road hazards. It’s likely that if you work in the trade, you or someone you know will be able to fix cars for a reasonable price. If you can afford the expense of repairs yourself, you don’t need to rely on insurance to cover small claims, thus raising your excess can make sense. There’s an additional justification for you to consider increasing your excess.

All-inclusive insurance may be less expensive overall. Although comprehensive insurance may be slightly more expensive than third party alone or third party.  Fire and theft policies, you may find that the additional coverage is worthwhile if you ever need to file a claim. Compare this to the savings on expenses if you choose a less expensive policy and the possibility that you can fix the damage on your own at a lower cost.

Trader Combined Insurance 

Verify that you have the appropriate quantity of coverage for the cars in your inventory. Stock levels and car models will occasionally change. Avoid the temptation, though, to underinsure your merchandise. This is because if a theft occurs and the value of your stock exceeds the amount you are insured for, your motor trade insurer may refuse to reimburse you. You will suffer if your amount of indemnity is insufficient to cover your automobiles, even if they do.


This Blog has given you all the insights that are necessary to compare motor trade insurance policies and quotes. Moreover, if you work part-time or full-time there is separate insurance for both. There are various types of coverage to save you from a big loss that could happen as a result of a mishappening. 

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