5 Questions to Ask About Your Motor Trade Insurance

Buying, selling and valeting vehicles must come with the right level of motor trade insurance, as it not only provides protection but also gives you confidence to handle and drive your clients’ cars.

Finding the right motor trade insurance policy can be challenging due to the wide range of policies out there. Fortunately, with the help of this blog, you’ll understand the necessary questions to ask about your motor trade insurance. Whether you’re just starting out in the motor trade or want to get a better understanding of your policies, read on to find out.

Question 1 - Where Will You Operate the Vehicles?

When selecting your policy, it’s important to consider where your motor trade business and your vehicles operate. Coverage requirements can vary based on your operation areas, affecting whether you need policies such as public liability, employers’ liability, equipment, stock and road risks. For businesses with physical locations such as showrooms or forecourts, cover for your premises is crucial. This insurance type protects against damages to your property and the contents within, safeguarding against potential losses from events like fire, theft or natural disasters.

It's more than likely you’ll also be taking vehicles out on the road, meaning you’ll also want road risk coverage. This protects you while driving customers’ vehicles on the road as well as stock while in transit.

Understanding the scope of where you operate, and the associated risks will guide you in choosing the appropriate coverage.

Question 2 - What Vehicles Do You Own and Who Drives Them?

Okay, technically this is two questions, but they go hand in hand. Motor trade policies vary in the types of vehicles they cover, such as commercial vehicles, performance cars, agricultural vehicles or motorbikes. Having the right policy to match your vehicle types is essential so you won’t face any fines or prosecution.

Additionally, consider who is authorised to drive your vehicles, not all employees with a standard driving licence will be able to drive motorbikes for example. The right policy should provide flexible cover to accommodate all employees who may need to drive the vehicles, whether for testing, delivery or client demonstrations.

Question 3 - How Much Cover Do You Need?

With insurance, you will hear the phrase “level of indemnity” which is the maximum amount the insurer will pay out for a single claim. When considering motor trade insurance coverage, assessing your business risks and setting an appropriate indemnity limit can help you avoid shortfalls in coverage, especially in cases involving high-value claims. Taking the time to evaluate this helps ensure that, in the event of a significant financial demand, your business’s assets are well protected.

We understand managing money is vital for motor trade businesses and understanding the motor trade insurance cost is one of the first aspects considered. That’s why we’ve also got an exclusive guide on the best tips for saving money on motor trade insurance premiums.

Question 4 - What Level of Liability Coverage Is Provided?

This next question involves checking if your policy includes comprehensive liability coverage, such as public liability and employers’ liability. These coverages are indispensable as they protect against claims of injury or damage caused by your motor trade activities. Ensuring you have adequate liability coverage can prevent substantial financial penalties and support your business in the long term.

Question 5 - How Much Coverage Is Provided for Equipment and Stock?

Our final question is regarding the equipment and stock you have access to in your motor trade company. For motor trade businesses, tools, machinery and other types of equipment represent considerable investments, so finding the right amount of coverage helps protect you against losses, theft, damage and other unforeseen circumstances. When deciding your policies, review the specifics on what’s covered to ensure that it’s not just your vehicles being protected.

The Right Motor Trade Insurance From Prime Cover

Deciding the right motor trade insurance involves careful planning and consideration of where you operate, what vehicles you handle, who drives them and how well your other assets are protected. Common mistakes can be avoided by asking the right questions and getting the answers from Prime Cover. Consulting with our experts, we will provide the insights and support you need to help you secure a policy that not only meets but exceeds your expectations, guaranteeing your business remains secure. Talk to our team today by calling 01527 433 434.