Learn more about how to get the right policy in the many-faceted world of trader insurance, including car jockey insurance.
Motor trade insurance is a catch-all term that can cover a huge range of policies, which are aimed at keeping businesses and individuals working in the motor industry road-legal.
You’ll need one of these motor-specific business insurance policies if your company has customers’ vehicles under its control, care or custody. Motor trade insurance will also be needed for businesses dealing with sales, covering the firm for things such as the demonstrating, collecting and delivering of vehicles.
The possible scenarios that may require cover are almost limitless. Traders’ insurance could, for example, be needed by a single, self-employed mechanic, a main-dealer garage network, or a car valet business.
Even within such firms, a company may need cover for just one driver, for a known group of drivers, or for ‘any driver’.
Many firms offering motor trade insurance pride themselves on their flexibility and will offer call-back and/or freephone services to help work out a customer’s requirements.
Such flexibility and diversity means that it can be difficult to make a true online comparison of trader insurance policies.
But, as with any other type of insurance, it’s vital to shop around to obtain the right cover at the right price.
That basic principle doesn’t just apply when you initially take out insurance, so shop around every year to avoid the price hikes associated with auto-renewal - you may be able to make significant savings for your business.
A motor trade insurance broker may be able to help you in this regard, by assessing your needs and then doing the shopping around for you. But bear in mind that the broker will be taking a fee, and the range of insurers they choose to look at may be limited.
The range of businesses covered by trade insurance is legion, but typical examples include:
The phrase ‘care, custody and control’ occurs repeatedly in the motor trade insurance world.
It typically refers to when a customer has left their vehicle with a business, meaning that the vehicle is no longer protected by the owner’s own, private insurance.
It’s at that point that motor trade insurance should kick in, offering protection to both the business and the customer.
A motor trade business is likely to value the flexibility of such a policy, which could potentially cover all its employees, and all the vehicles they have to use in the course of their work.
Some have, therefore, seen motor trade insurance as an easy short-cut that could allow them the flexibility associated with ‘any vehicle’ cover.
But only legitimate motor trade businesses qualify for such an insurance product, and even if you have a trade policy it’ll only cover you for your own vehicles plus any vehicle that’s in your care, custody or control for the purpose of the business.
If any vehicles covered by a motor trade policy are also used in a private capacity by company employees, their family or friends, ensure they’re covered by your insurance policy - this sort of use may well be listed as an exclusion.
As with any type of insurance, all policies will vary, and the diverse nature of motor trade insurance means that these variations can be enormous.
Third party is typically the most basic level of cover, but - depending on the nature of your business - you may also have the option of ‘parts only’ cover; note that this on its own will not give you the legal protection necessary to take a vehicle on the road.
Having road risks cover on your trade insurance means you’ll be able to drive your own vehicles, plus those that aren’t yours for the purpose of carrying out your job.
At the most basic level, you’ll face the choice of whether to arrange cover on a third party only (TPO), third party, fire and theft (TPFT), or comprehensive basis.
A traders combined policy is typically designed for vehicle traders who work from business premises
TPO is the minimum level insurance required by law for drivers in the UK, covering damage to third-party property, liability for injury to others (including passengers) and liability while towing a caravan or trailer.
TPFT covers all these elements plus fire damage, theft and any damage such crime does to a vehicle.
A comprehensive policy offers all the cover listed under TPFT, and you should also expect protection for things likes windscreens, personal effects, loss or damage to vehicles, medical expenses and accidental damage.
A traders combined policy is typically designed for vehicle traders who work from business premises.
As well as road risk cover, such a policy typically comes with a bespoke range of cover options, including things such as those listed below.
The number of ‘extras’ that can be included on motor trade insurance are almost limitless. Some may be included on the policy as standard, others may require an additional fee, or some areas of cover may not be available with your insurer at all.
What you want and need will depend on you and your business, but try not to pay for elements that are of no use to you, or that you may already have cover for from another source.
Some of the typical additions you may find on a policy include:
We’ve already stressed what is, perhaps, the best way to find cheap motor trade insurance - shop around every time you take out cover and don’t allow a policy to auto-renew without checking other deals on the market. Beyond that, think about some of the following areas:
In terms of money-saving tips that can be applied to motor insurance in general, think about: