The motor trade is a varied industry that contains many different occupations. Read on to find out what occupations are covered by the motor trade and how this can affect your insurance requirements.
After all, no two motor trade businesses are the same and if you don’t know what type of cover you need, you may not be adequately protected in case anything happens.
Car sales is probably the first occupation that comes to mind when you think of the motor trade. It involves buying and selling cars for a profit and you could have anything from five to five hundred cars on your hands at one time.
Most car sales companies also operate from their own premises – with a large forecourt – and have multiple employees. Most also allow potential customers to test drive the cars before they buy.
For this reason, car salesmen need a very unique type of insurance to ensure that the public, their employees and their stock is all protected.
Mechanics & MOT service centres
Mechanics and MOT service centres usually have a high turnover of vehicles on their premises.
Employees may be required to drive customers’ vehicles in order to move them and it’s likely that the premises will contain tools that are essential for completing the work.
Members of the public are also likely to come onto the premises – as a result it is very important that mechanics and MOT service centres have a comprehensive level of motor trade insurance to ensure all these factors are covered.
Mobile valeters operate in a slightly different way to other motor traders.
They’re unlikely to have their own premises – rather, driving directly to the customer – and they’ll also have valuable tools in their van which will probably be left there overnight.
If they’re self-employed, they van may also need to be used for domestic reasons.
If you are a mobile valeter it is important to explain all this to your insurance advisor to make sure your policy accurately reflects your business needs.
Part-time motor traders
You don’t have to work full-time to be considered a motor trader. In fact, it’s very important to understand what makes you qualify as a part-time motor trader because you may need to take out extra insurance to cover your activities.
According to UK law, any car that hasn’t been declared off-road with a SORN (Statutory Off Road Notification) must be insured.
And if you qualify as a motor trader, it is the law to be insured.
Saying that, if you only work in the industry part time, you won’t have the same requirements as a full time motor trader.
Let’s take a look at what qualifies you as a part-time motor trader:
- Having another occupation aside from motor trade
- Buying or selling vehicles as a hobby or part-time business
- Only dealing with a few cars a year
You may even need to use your vehicle for other uses, such as your other occupation or to take your children to school. In this case, you will need a special insurance policy that allows you to do so.
Tailoring your motor trade insurance to your job
The diverse nature of the motor trade means your insurance requirements will probably be much different from other motor traders’.
That’s why it’s very important to make sure you have the right insurance for the type of motor trader you are.
When you contact Insure Motor Trade for a quote, one of our expert insurance advisors will assess the exact needs of your motor trade business – this includes ensuring your premises, tools and additional uses are covered too.
And if you policy is missing anything, it can be added as an optional extra.
To speak to us about our different levels of cover, give us a call today on 0844 931 2020May 1, 2014