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Motor Trade Insurance

Everything You Need to Know About Motor Trade Insurance and How to Get It

You’re about to find out exactly what motor trade insurance (MTI) is, whether or not you need it, and how to get the best possible deal. If you’d rather skip the literature and get a quick quote for motor trade insurance now, then just complete the quick form on the right of this page.

What is motor trade insurance?

MTI is designed to protect business owners, employees and customers alike – specifically in the motor trade sector, for motoring-related damages. We sometimes recommend Unicom to some of our clients for their excellent trade policies and service to customers from large businesses, dealerships and garages for example.

Do I need motor trade insurance?

There is a variety of different business types that need an MTI policy in place. Many of which need it by law (more legal details below). Here’s a list of the most common firm types that protect themselves with a policy every year.
Of course, your business type might not feature on this list. But that doesn’t mean you’re exempt from needing protection. Make sure by calling us on 0844 931 2020 and put your mind at rest today.

• New car dealerships
• Second hand car dealerships
• Private vehicle sales
• Vehicle auction houses
• All types of vehicle mechanic
• Specialist tyre fitters
• Car valeting businesses
• Vehicle breakdown recovery firms
• Vehicle delivery and collection agents
• Vehicle salvage and breakers

Of course, your business type might not feature on this list. But that doesn’t mean you’re exempt from needing protection. Make sure by calling us on 0844 931 2020 and put your mind at rest today.

Do I need motor trade insurance by law?

If your business type is listed above or if you’ve confirmed that you require MTI with us by phone, then yes – you do need to have the protection in place by law. It is an offence to drive on a public highway without having TPO cover which is the minimum legal requirement.

Why do i need a motor trade insurance policy by law?

Well, the main point of your motor trade insurance is to provide you and your company with road risks protection.

Road risks protection legally enables you to take a vehicle onto public UK roads. Without it, you’d be breaking the law by driving without insurance.

Why can’t I just get a normal car insurance policy?

That would be a bad idea. See, your MTI policy is an all-in-one package that covers every vehicle belonging to you, your business, spouse or business partner (As long as they are named on your policy)and even your customers vehicles while they’re on-site or in transit (optional).

If you tried to get a normal car insurance policy for those vehicles individually then you would be paying a premium for each vehicle. And it would involve a lot of unnecessary paperwork. Plus, a ‘normal’ private policy typically wouldn’t cover you for customer vehicles or use in connection with your motor trade business. For more information on the legalities behind motor trade insurance, keep reading this page or call our experts on 0844 931 2020 for the full details.

What does motor trade insurance cover me for?

Now, this depends on the level of motor trade insurance you go for, and whether or not you customise the policy with a broker. Just to give you an idea on what the most complete package could cover you for, here’s another list:

• Damage to all named business vehicles
• Damage to all customer vehicles
• Damage to business premises
• Theft of vehicles on-site
• Machinery, plant and all other contents
• Vehicle & Material Stock
• Damage to portable hand tools
• Damage to goods being transported
• Business Interruption and Loss of Licence cover
• Cover for Monies held on site or in transit
• Loss following purchase of a vehicle from a person who does not legally own it
• Engineering inspections
• Employee personal injuries
• Customer personal injuries
• Legal fees

What are the different levels of motor trade insurance?

Just like when you’re applying for private car insurance, you have three options when it comes to the level of cover you can get:
Third Party Motor Trade Insurance
Third Party Fire and Theft Motor Trade Insurance
Comprehensive Motor Trade Insurance
We’re here to give you all the details you require so you can decide what best option for you and your business is.

Third Party Motor Trade Insurance

This is your nuts & bolts option.

Completely stripped of all the extras – your third party policy is likely to come with a cheaper quote. Any costs as a result of an incident you were at fault for, will be covered by your third party MTI. However, you will not be able to claim for damages incurred by your own business and/or its vehicles or any financial loss as a result of the incident.

Third Party Fire and Theft Motor Trade Insurance

Once you understand third party, then this second option becomes pretty self-explanatory.

Basically, you receive the exact same level of protection as the option above – only now your own vehicles are protected in the event of a fire or if they’re stolen. Different policies can vary on the details and insurer. It’s always best to get in touch with an expert to confirm what you’re covered for here as terms vary from insurer to insurer (we’re available on 0844 931 2020).

Comprehensive Motor Trade Insurance

This is the most common choice amongst UK business owners. And that’s largely due to the fact that it ticks all the boxes.

You’ll be covered against damage to your vehicles, on top of those that belong to others. You’ll also be provided with legal protection should any claims against you require it.

What other options do I have when it comes to motor trade insurance?

Beyond the core three levels of cover above, you can opt for a combined motor trade insurance policy or a part-time quote.

Combined motor trade insurance

This is what we were talking about earlier, in regards to ‘the most complete package’ you can get.
The beauty of the combined option is that you can customise your policy to include features from other insurance products (such as premises cover) – making sure everything your business needs protection for, is all included within the same package and quote.

To create your own combined MTI deal from scratch, you’ll need the help of an insurance broker.And that’s where we come in.Call us on 0844 931 2020 today and we’ll help you build a new policy for your business. Then we’ll do all the hard work on negotiating a brilliant quote for you.

Part-time Motor Trade Insurance

This option is specifically designed for those who work on their motor trade business part-time.

For example, a full-time mechanic may have his own second-hand car sales venture on the side – operating from his home driveway. He still needs motor trade insurance. And so to save him from paying a quote for a full package – he might as well save money by acquiring a part-time policy.

What legal things do I need to consider when it comes to motor trade insurance?

First off, you need to make sure your insurer is uploading your trade plates and own vehicles to the Motor Insurance Database (we take care of that for you when you get a quote from Insure Motor Trade).

Second of all, it’s worth you enquiring with your provider whether or not you are protected for public and employer’s liability.

Public Liability Insurance

All legal expenses and solicitor fees are paid for, should somebody choose to file a claim against your business. You’d be dealing with enough stress in this situation – you shouldn’t need to worry about paying out money too.
Customers or members of the public may claim against you for:
• Personal injuries sustained on your site
• Damage to their vehicle whilst in your care
• Loss of their vehicle (or parts of it) whilst in your custody
• Damage to their vehicle caused by the driving of you/your employees

Employer’s Liability

It’s important to know that the features of different liability policies will range between providers. It’s our job to make sure you get everything you need from your motor trade insurance. Again, all your legal costs would be covered – this time in the event of an employee filing a claim against you for:
• Personal injuries sustained during a road accident in the working day
• Personal injuries sustained whilst clocked-in at work

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