Motor Trade Insurance

Motor trade insurance is essential for businesses in the motor trade industry, offering protection for vehicles, employees, and your business operations. Whether you’re a car dealer, repair garage, or valeting service, find out how our tailored policies can protect your assets and provide peace of mind.

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Why Compare Motor Trade Insurance at gavello.co.uk

At Gavello, we offer a simple and transparent way to compare motor trade insurance. Our platform connects you with a wide range of trusted brokers, making it easy to find competitive quotes tailored to your business needs. Whether you run a car dealership, repair garage, or vehicle brokerage, Gavello’s auction-style bidding system ensures you get the best coverage at the best price. Compare your options today and experience a streamlined process that saves you time and money.

How Does A Motor Trade Insurance Policy Work?

A motor trade insurance policy covers businesses involved in the buying, selling, repairing, or servicing of vehicles. It provides protection against a range of risks, including damage to vehicles in your care, public liability, and employers’ liability. With Gavello, you can compare policies from trusted brokers, ensuring you get the right coverage for your business. Whether it’s for your premises, fleet, or liability needs, our platform makes it easy to find tailored insurance at competitive prices.

What Types Of Businesses Need Motor Trade Insurance ?

Motor Dealership

Motor dealerships need motor trade insurance to cover vehicles on display, during test drives, and while in transit. It also protects against theft, damage, and third-party liabilities

Valeting and Detailing Services

Valeting and detailing businesses require insurance to cover vehicles during cleaning and detailing services. It ensures protection against accidental damage and liability claims.

Car Hire Businesses

Car hire businesses need motor trade insurance to cover their fleet of vehicles, ensuring protection against damage, theft, and liability during rental periods.

MOT Stations

MOT stations need motor trade insurance to cover vehicles during testing procedures, protecting against accidental damage and ensuring public and employer liability coverage.

Breakdown and Recovery Firms

Breakdown and recovery businesses need motor trade insurance to cover vehicles being towed or recovered. It also protects against any damages that may occur during recovery operations and ensures liability coverage for the business.

Car Jockey Services

Car jockey services need motor trade insurance to cover vehicles while moving them around dealerships, auctions, or showrooms. It provides protection from accidental damage or theft.

Vehicle Auction Houses

Vehicle auction houses need motor trade insurance to cover vehicles while they are on display, being auctioned, or in transit. It also covers liability for auction activities.

Car Importers and Exporters

Car importers and exporters need motor trade insurance to cover vehicles during transit, whether they’re being brought into or sent out of the country. It ensures protection against theft, damage, and liabilities during the shipping process.

Garages (repairs, MOTs, services)

Garages offering repairs, MOT testing, and services need insurance to cover customer vehicles in their care, protecting against damages, accidents, and third-party liabilities.

Vehicle Brokers

Vehicle brokers need motor trade insurance to cover vehicles under their care and ensure protection while they are being negotiated, sold, or transported.

Bodyshop Repair Garages

Bodyshop repair garages require insurance to cover vehicles during repairs or modifications. It protects against damages and ensures liability coverage for any errors or accidents.

Vehicle Accessories and Parts Retailers

Retailers selling vehicle accessories and parts need insurance to protect their inventory, premises and ensure liability coverage for customer interactions.

What Does Motor Trade Insurance Cover?

Accidental Damage

This coverage protects your vehicles from damage caused by accidents, whether on the road or at your premises. It ensures that repairs or replacements are covered, reducing the financial impact of unexpected incidents.

Employers’ Liability

Required by law for businesses with employees, it covers claims made by staff for work-related injuries or illnesses.

Public Liability

Protects your business from claims made by third parties for injury or property damage caused by your business activities or operations.

Material Damage

Covers damage to your business premises, equipment, and vehicles. It ensures your operations can continue smoothly if assets are damaged.

Vehicle Types

This cover extends to additional vehicle types that may not be covered under standard policies. It includes protection for various vehicles like vans, trucks, or motorcycles, ensuring that businesses with diverse fleets have comprehensive coverage for all their vehicles.

Road Risk Insurance

Covers vehicles used on public roads, including customer vehicles. It ensures protection in case of accidents, theft, or damage while on the road

Product Liability

Protects against claims arising from products you sell or service, covering damages or injuries caused by faulty parts or products.

Combined and Liability

This policy combines both road risk and public liability coverage, protecting vehicles on public roads as well as your business against third-party claims. It ensures that your vehicles are covered for accidents, theft, and damage while driving, while also safeguarding your business from potential injury or property damage claims made by others.

Extra Drivers

This cover allows you to add additional drivers to your motor trade insurance policy. It ensures that all drivers, whether permanent or temporary, are covered for accidents, damages, and liabilities while operating your vehicles, providing flexibility for businesses with multiple staff members.

Legal Expenses

Covers the cost of legal representation for disputes, including legal fees and court costs, ensuring your business is protected during legal proceedings.

What Is Typically Excluded From Motor Trade Insurance?

Although motor traders insurance provides comprehensive cover, it also has specific policy exclusions and limitations in place that you have to be mindful of.

Here are some scenarios where you won’t be covered should a vehicle in your care get damaged:

Personal use of business vehicles: Motor trade insurance typically excludes coverage for personal use of business vehicles. If a vehicle is used for personal reasons without the appropriate cover, it may not be covered in the event of an accident or damage.

Voiding your policy: Using business vehicles for personal use without the proper additional cover can result in voiding your motor trade insurance. Always ensure that your policy covers any non-business use of your vehicles.

Unqualified drivers: If an unqualified driver operates a vehicle covered under your motor trade insurance, any damage or incidents may not be covered. Only qualified, insured drivers should operate your vehicles.

Illegal activities: Motor trade insurance excludes coverage if vehicles are used in illegal activities. Any damage, theft, or incidents occurring during illegal use will not be covered by your policy.

Specific types of vehicles: Certain types of vehicles may not be covered under your policy, such as high-performance cars, vehicles over a certain weight, or vehicles not suited for trade purposes. Always check your policy to confirm the types of vehicles included in your cover.

What Level Of Motor Trade Insurance Cover Do I Need?

The level of motor trade insurance cover you need depends on the size and nature of your business. Here’s an overview of key factors to consider when choosing your coverage:

Type of Business: Different motor trade businesses require different levels of cover. For example, a small vehicle repair garage may need basic road risk insurance, while a car dealership may require a more comprehensive package, including public liability, stock, and material damage coverage.

Fleet Size and Vehicle Types: The size of your fleet and the types of vehicles you handle will impact the level of cover required. Businesses dealing with high-value vehicles or larger fleets may need more extensive protection to cover potential risks.

Public and Employer Liability: Consider adding public liability and employer liability coverage if your business interacts with customers or has employees. These types of coverage protect against claims for injury or damage caused by your business operations, which are essential for most motor trade businesses.

Road Risk vs. Comprehensive Cover: You’ll need to decide whether you require road risk insurance, which covers vehicles on the road, or a more comprehensive policy that includes coverage for accidents on your premises, vehicle damage, and liability.

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Additional Drivers: If you have multiple drivers operating business vehicles, it’s essential to ensure that all drivers are covered under your policy. Additional driver coverage ensures protection for anyone legally permitted to drive your vehicles.

Specialised Insurance Needs: Some businesses may have specific needs, such as coverage for vehicles being repaired or modified, or protection for vehicles in transit. Ensure your policy covers all aspects of your business operations.

Additional Motor Trade Insurance Options You Should Consider

While basic motor trade insurance covers the core risks, there are several additional options available to tailor your policy to the specific needs of your business:

Explore Essential Add-Ons to Enhance Your Motor Trade Insurance and Tailor It to Your Business Needs

Material Damage Insurance: If your premises, tools, or machinery are damaged, this insurance will cover the costs of repairs or replacements. This is particularly useful for garages and repair businesses that rely on equipment to operate.

Stock Insurance: This option covers your vehicles, equipment, and parts while they’re in your care. It protects against loss or damage due to theft, fire, or other unforeseen events, ensuring your stock is financially protected.

Legal Expenses Insurance: Legal disputes can be costly. This cover helps with the costs of legal representation and court fees if your business faces litigation, ensuring you have financial protection during legal proceedings.

Public and Employers’ Liability: These additional liability covers are essential if you interact with customers or have employees. Public liability protects against third-party injury or property damage, while employers’ liability is required by law to cover work-related injuries or illnesses of your employees.

Tool and Equipment Insurance: For businesses relying on tools and machinery, this insurance covers damage, loss, or theft of your tools and equipment. It’s especially important for repair garages, MOT stations, and mobile mechanics.

Road Risk Insurance: If your vehicles are driven on public roads, road risk insurance is crucial. It protects your vehicles against damage, theft, or accidents while on the road, offering comprehensive protection for your mobile business operations.

Can Anyone Get Motor Trade Insurance?

Age Requirements and Impact on Cost

Minimum Age Requirement: Insurance providers often set a minimum age for motor trade insurance, typically 21 or 25 years old, depending on the policy.

Higher Premiums for Younger Drivers: Younger drivers or those with less experience may face higher premiums, as insurers see them as higher risk.

Age and Experience Considerations: Some insurers may consider the years of experience in the motor trade industry when calculating premiums.

Impact of Age on Policy Flexibility: Older drivers with a clean driving record may have access to more flexible and affordable policy options compared to younger drivers.

Driving Record Considerations

Impact of Past Accidents: A history of accidents or traffic violations can lead to higher premiums, as insurers view drivers with poor records as higher risk.

Claims History: If you or your business has made multiple claims in the past, it may increase the cost of your policy due to the perceived risk of further claims.

Clean Driving Record: A clean, claims-free driving record typically results in lower premiums, as it demonstrates a lower risk to insurers.

Driver’s Licence Status: The type of driver’s licence you hold and its history (e.g., points, suspensions) will also affect the cost and availability of motor trade insurance.

Motor Trade Business Type and Activities

Nature of Business: The type of motor trade business you operate affects your premium. For example, car dealerships may have different coverage needs and costs compared to repair garages or vehicle brokers.

Scope of Operations: The broader the scope of your business activities (e.g., offering services like repairs, sales, and MOTs), the higher the potential risks, which can impact the cost of insurance.

High-Risk Activities: Businesses involved in higher-risk activities may face higher premiums due to the increased chance of accidents or claims.

Business Size: The size of your business, including the number of vehicles you handle and the number of employees, will also influence the cost of motor trade insurance.

Consulting with Experts

Tailored Advice: Consulting with insurance experts ensures you get a policy tailored to your business’s specific needs, helping you navigate the complex requirements of motor trade insurance.

Maximising Coverage: Experts can help identify additional coverages or optional add-ons that may benefit your business, ensuring you’re fully protected against all risks.

Comparing Quotes: Insurance brokers and experts can help you compare different policies and quotes, ensuring you find the most cost-effective and comprehensive cover available.

Risk Management Guidance: Experts can offer valuable advice on how to reduce risks within your business, which may lead to lower premiums and a more competitive policy.

Regulations and Legal Requirements for Motor Trade Insurance in the UK

Understanding the Legal Requirements to Ensure Your Motor Trade Business Is Fully Covered and Compliant

Legal Obligation to Have Insurance:

In the UK, businesses involved in the motor trade are legally required to have insurance to cover any vehicles used on public roads, including road risk insurance.

Employers’ Liability Insurance:

If you employ anyone in your motor trade business, you are legally required to have employers’ liability insurance to cover work-related injuries or illnesses.

Road Traffic Act 1988:

The Road Traffic Act requires motor trade businesses to ensure that vehicles driven on public roads have at least third-party insurance coverage.

Type of Insurance Required:

Depending on your business activities, you may need additional types of coverage, such as public liability insurance, material damage, and stock insurance.

Insurance for Vehicle Testing:

Businesses that conduct vehicle MOTs must ensure they have appropriate insurance to cover vehicles while they are being tested.

Vehicle Licensing Requirements:

Motor trade businesses must ensure all vehicles they own or use are correctly licensed, and their insurance must cover them while on the road.

Insurance for Temporary Drivers:

Any drivers temporarily operating vehicles (such as those hired for events or promotions) should be covered under the policy. Ensure your insurance allows for this flexibility.

Environmental Considerations:

Businesses dealing with vehicle waste or hazardous materials (e.g., fuel or oil) may require special environmental liability insurance to cover any accidental pollution.

Sale of Vehicles:

When selling vehicles, you are legally required to inform buyers if a vehicle is not roadworthy, and your insurance must cover any risks associated with sales activities.

Vehicle Valuations:

Businesses involved in the buying and selling of vehicles should be aware that incorrect vehicle valuations can lead to insurance claims being invalidated or reduced.

How to Reduce Your Motor Trade Insurance Costs and Save Money

To lower your premiums, improve security, maintain a clean driving record, and keep your vehicles well-maintained. Additionally, comparing quotes and adjusting your excess can help you save money.

Avoid Accidents and Traffic Violations

Maintaining a clean driving record with no accidents or traffic violations helps reduce your insurance premiums. Insurers reward safe driving by offering lower rates to those with a history of responsible driving.

Keep a Regular Check on Your Points

Points on your licence from traffic violations can raise your premiums. Make sure to stay aware of your points and avoid any further violations to prevent your insurance costs from rising.

Consider Advanced Driving Courses

Taking advanced driving courses or defensive driving programs can help you demonstrate your commitment to safety. Some insurers may offer discounts to drivers who have completed these programs.

Regular Vehicle Maintenance

Well-maintained vehicles are less likely to be involved in accidents due to mechanical failure. Ensure that your vehicles are regularly serviced to keep them in top condition and lower the likelihood of claims.

Keep Your Employees’ Records Clean

If you have employees driving company vehicles, ensure they also maintain good driving records. Insurers often assess the driving history of all drivers to determine rates for the business.

Use Telematics or Black Box Insurance

Installing a telematics device or opting for black box insurance can demonstrate that you are a safe driver. These devices monitor driving habits, and good driving behaviour can result in lower premiums.

Frequently asked questions

What is motor trade insurance, and do I need it for my business?

Motor trade insurance is a specialized policy for businesses involved in buying, selling, repairing, or servicing vehicles. If your business operates with vehicles or vehicle-related activities, motor trade insurance is required to ensure that your vehicles, premises, and employees are protected against risks like accidents, theft, and damage.

How does Gavello’s motor trade insurance compare to other providers?

Gavello offers a unique approach with its online platform that allows you to receive competitive quotes through an auction-style bidding system. Unlike traditional providers, Gavello connects businesses directly with insurers, providing a streamlined process and potentially lower costs.

What types of businesses can benefit from Gavello’s motor trade insurance?

Businesses involved in vehicle sales, repairs, MOT testing, valeting services, vehicle recovery, and leasing can benefit from Gavello’s motor trade insurance. Whether you’re a small garage or a large dealership, Gavello has solutions to meet your needs.

Can I get motor trade insurance for a single vehicle or only for a fleet?

Gavello’s motor trade insurance can be tailored to both single vehicles and larger fleets. Whether you operate a one-man business or manage a fleet, Gavello can provide coverage that fits your business’s scale.

How do I get a quote for motor trade insurance with Gavello?

Getting a quote with Gavello is simple. Visit our platform, enter your business details, and receive multiple competitive quotes from a panel of insurers. You can then compare these options and choose the best coverage for your needs.

Does Gavello’s motor trade insurance cover vehicles being sold or repaired?

Yes, Gavello’s motor trade insurance covers vehicles being sold, repaired, or serviced. Whether they are in your care for sale or repair, you’re covered against damage, theft, or other incidents that may occur during these processes.

How can I reduce the cost of my motor trade insurance with Gavello?

You can reduce your insurance costs by maintaining a clean driving record, improving security at your premises, keeping your vehicles well-maintained, and opting for higher excess on your policy. Gavello also offers competitive quotes, so comparing multiple providers via the platform can help find the most cost-effective option.

What additional coverage options does Gavello offer with motor trade insurance?

Gavello offers a variety of additional coverage options, including public liability insurance, employers’ liability, stock insurance, material damage cover, and more. You can tailor your policy to suit your specific business needs by adding extra cover as required.

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