When earning a living within the motor trade, whether that be through buying, selling, fixing, or anything other form of work with cars, it is highly recommended that you take out to cover you, rather than a particular vehicle. All traders will have different needs depending on your specialist area, so it is important that you seek a consultation with a qualified insurance broker who will understand your particular requirements.
You are required by UK law to have adequate insurance and register your vehicle on the Motor Insurance Database (MID) if your business deals in any of the following:
• Sale or repair of new and used cars, caravans, motorcycles, or any commercial vehicle
• Installation of any audio or security equipment in vehicles
• Servicing of any vehicle
• Motor mechanics, electrics, or engineering for any purpose, including agricultural
• Body work repairs of vehicles
• Fitting or replacing of tyres and exhausts
• Acting as a breakdown or recovery operator
The Motor Insurance Database is a means of identifying who insures a vehicle by its registration number, and all business in the motor trade, and their insurers must register their vehicle on the MID.
The reasons insurance cover may be beneficial to you will vary, but common claims on insurance policies are due to vehicles getting stolen, damaged or written off, property damaged as a result of your work, and the contracting of serious illness due to poor Health and Safety measures.
Motor insurance is split into two different categories: road risk insurance and combined policies. Road risk insurance covers vehicles belonging to your business – this form of cover is available as comprehensive; third party, fire and theft; or third party only insurance. The drawback to road risk insurance is that you are not covered for the loss or damage to vehicles at your business premises. A combined policy is designed to cover the risks of running a motor trade business – some of these policies are legally required, whereas others are advisory, such as public liability insurance which will cover clients on your premises.
Remember, it is important to ensure that your motor trade business is covered from every angle, and it is strongly recommended that you take out adequate cover whatever service you provide, whether you run a small garage or act as a car salesman, financial protection in the event of a claim is vital.