Motor Trade Insurance

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Who Needs Motor Trade Insurance?

Anyone who derives an income from motor trade activities such as buying, selling, repairing or restoring vehicles – cars, vans, trucks or motorcycles – on a full or part-time basis. Whether you operate a franchised dealership from an established showroom, trade used cars from a forecourt or run a local repair garage or bodyshop, it is essential to have a suitable policy in place. If you don’t, you are breaking the law.

Motor Trade insurance is a complex, competitive market with a host of options that depend on the nature and scale of your business. That’s why it pays to speak to independent experts such as the team at Haden Welbeck; we will work with you to pinpoint the exact level of protection that meets your requirements.

If you are a sole trader buying and selling cars from home you are legally required to have at least a Third Party Only Road Risk policy (Third Party Fire and Theft and Comprehensive alternatives are also available) that permits you to drive your vehicle or that of a customer on the road (it also covers a mechanic conducting a test drive). If you want to drive a car home from an auction you might only require a Third Party Only policy; to allow potential purchasers to test drive a vehicle, you will need (accompanied) Demonstration cover; if you have employees, you must take out Employers’ and Public Liability insurance; if you own a dealership, then Combined Motor Trade Insurance will protect your vehicle stock, premises, tools and machinery, fixtures and fittings and provide Employers’ and Public Liability cover.

Most importantly, a tailor-made Motor Trade policy also gives the necessary insurance for individuals working in related sectors of the industry, such as MOT Test Centres, mobile breakdown, windscreen and chip and scratch repair services and valeting, signwriting and audio and alarm installation businesses.


And who isn’t entitled to specialised Motor Trade insurance? Driven in part by higher premiums for younger drivers, in recent years there has been a rise in the number of people choosing it as a cheaper alternative to normal multi-car policies. It isn’t! The product is not designed for this purpose and those using it in this way are not properly insured. Hence, motor trade insurers may request detailed evidence of trading activities, such as company accounts, copy sale ledgers and advertisements.

Whatever your involvement in the motor trade, Haden Welbeck will advise you on the most cost-effective insurance options, arrange a bespoke policy best suited to your business and keep you up-to-date with the latest regulations and compliance requirements relating to the industry.

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