Why would I need motor trade insurance?

Well Dunn Insurance Blog , Motor Trade Insurance

“Do I or do I not need to take to motor trade insurance policy?”- most of the motor traders are in this constant dilemma with the insurance scheme and are kind of clueless what benefits they would be getting by opting for the motor trade insurance. The law demands every motor trader to sign up with motor trade insurance policy and any negligence here would amount to violating the law. So if you are into a business dealing with cars, a motor trade insurance is a must. Also known as Road Risk Insurance, this insurance policy comes with a big list of benefits that would be discussed below.

But, first, let’s have a look at the different covers offered by motor trade insurance policy-

3rd party only

It’s the basic motor trade insurance coverage which would be good for traders who-

  • Services, restores or repair vehicles
  • Is a valet, mobile tuner or vehicle tuner
  • Runs garage or MOT centre
  • Buys & sells vehicles or cars for profit
  • Drives his own car or that of customer’s on public roadway or has any such vehicles on business premise or right at customer’s/his home address

This policy would cover the driver named on policy who would be eligible to steer any car related to motor trade. The driver would also be covered for damages caused to 3rd party vehicle.

3rd party fire & theft

This would cover a motor trader for every clause mentioned above & would also include coverage for damage or loss of vehicle under the control of motor trader- and certainly for theft & fire. Moreover any 3rd party claims, damage or injury would be covered here.


This motor trade insurance policy would cover all the clauses you see above and also accidental damage caused to a vehicle owned by motor trader or the vehicle that he is responsible for.

Liability insurance

It covers employer’s liability, public liability as well as sales & service indemnity.

Combined insurance

As the name suggests, this motor trade insurance policy would offer coverage for money, tools, premises, liabilities & contents. Besides, it assures protection for your entire business. The policy covers the motor traders operating business right from home & business premises.

So, who would need motor trade insurance:

From the above discussion, it’s clear that the motor trade insurance would be needed if you are into a business that involves vehicles such as motorbikes, cars or vans. The policy is applicable for-

  • People into buying & selling cars
  • People running vehicle repair & service centers
  • People running MOT centre or garage
  • Businesses involving goods transportation

Now, let’s discuss why you should go for motor trade insurance-

Legal binding

As mentioned earlier, it’s legally needed for any motor trader to take to motor trade insurance and any problem here would result to dire consequences. You definitely don’t wish to mess with the law.

Ability to drive any vehicle with coverage

When you go for personal vehicle insurance scheme, both the driver (you) & vehicle would be insured. But the motor trade insurance policy would insure the driver individually as well which means that the driver would be fully covered no matter whichever vehicle he drives for motor trading purposes. In case of regular personal insurance policies, the driver won’t get the coverage if he is driving a car other than the one mentioned in the policy.

Coverage for everything valuable for business

If you are asking why you should go for a motor trading insurance policy, this is one of the most important pointers for you. Your business is almost nothing without its valuables and this insurance policy will make sure everything valuable for your business is under protection. So, from the tools to business premises to IT equipment to accidental money loss to loss in earnings during accidents or other damages- you will have everything guarded with motor trade insurance policy.

Protection for your entire business

A motor trade insurance policy will extend protection for your entire business, added to insuring the business vehicles in case of accidental, fire & theft damages. This way, you can be assured of a continuous run of your business even in the face of unexpected unwanted mishaps.

Tailored solutions

Insurance needs would usually vary from one motor trader to another and you will be glad to know that the insurance providers offer tailored solutions on motor trade insurance. It implies that you can ask your insurance provider to customize the policy as per the specific requirements of your business.

Caters to any business size

Another great benefit of motor trade insurance is that it caters to any size of motor trading business. So, no matter, how big or small your business, you will have the peace of mind knowing that your business is guarded. The cover is applicable whether one is working part time or full time.

Savings on domestic insurance

The motor trade insurance policy will allow you to add on your spouse or partner to the insurance scheme at a fair cost. This way, you will have handy savings on the domestic insurance coverage policies. However, you must inform your insurance provider beforehand about your intention to include a family member in the insurance policy.

There is no alternative to motor trade insurance when you are into a business involving vehicles. Make sure to settle with a reliable motor trade insurance provider. It’s suggested not to settle with the first insurance provider you come across online. Rather, you should make a shortlist of at least 3-4 potential names before the final settlement. Study about their reputation, experience in the industry, premiums and certainly check what their clients have to say about them. The one you take to must hold a strong presence in market, should assure a competitive premium price and always go for a name which is backed by a long list of satisfied clientele.

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