How to Choose a Suitable Motor Trade Insurance Policy

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Whether you’re a mechanic or run a vehicle recovery business, motor trade insurance is your safeguard against a range of potential risks. But with such a wide range of options available, how do you choose a suitable policy? Our motor trade insurance experts are exploring the key considerations that should guide your decision.

What is Motor Trade Insurance?

First and foremost, motor trade car insurance is a type of coverage designed specifically for businesses that handle vehicles as part of their operations. This can range from car dealerships to garages and repair shops. Unlike standard car insurance, a tailored policy will cover a variety of risks that are unique to the motor trade industry and that businesses might face in the course of their day-to-day activities.

The Different Types of Cover Explained

As for choosing a motor trade insurance policy for your own business, it’s essential to understand the options available. Generally, this is split into three categories:

  1. Third Party Only: This is the most basic level of insurance and is the minimum legal requirement for vehicles in the UK. It covers damages to a third party in case of an accident but doesn’t cover damages to your own vehicle.
  2. Third Party, Fire, and Theft: Providing a step up from third party only coverage, this also covers your own vehicles in case of fire or theft.
  3. Comprehensive: This offers the broadest level of cover, including accidental damage to your own vehicles.

From there, you can decide on which individual components you need in a motor trade insurance policy. Depending on your specific business needs, you may want to consider adding the following coverage:

  1. Vehicle Recovery: If your business revolves around towing and recovering vehicles, this cover is a must. It ensures protection against damages incurred during the recovery process.
  2. Collection and Delivery Agents: Those involved in transporting vehicles from one location should consider this cover to provide protection during the transit phase.
  3. Mobile Mechanics and Tyre Fitters: If you offer on-the-spot services, this policy will cover you against potential risks associated with working on vehicles outside your primary location.
  4. Product Liability: In the event that a product you’ve sold or fitted causes harm, this coverage will protect you against any potential legal claims.
  5. Public Liability: This should be an essential consideration for every motor trade business. It covers you against claims made by members of the public who might get injured on your premises or due to your business operations.

Choose the Right Motor Trade Insurance Broker

Of course, a crucial step in finding the right policy for your business is selecting the right motor trade insurance broker. At Alan & Thomas, we offer bespoke motor trade policies that can be tailored to just about any need or requirement. As a Chartered Insurance Broker, we work with a large range of insurance providers around the UK. This enables our experts to take the time to get to know your business before linking you with a suitable insurance policy.

Are you interested in road risk motor trade insurance for your own business? Get in touch and we’ll be happy to provide you with the coverage you need. Speak with us today by calling 01202 745900 or by emailing info@alan-thomas.co.uk.