Three commonly asked motor trade insurance questions

Finding the right trade insurance is not always quite as simple as buying standard car insurance. There are a lot of extra factors to take into account, including additional drivers, your business storage and your indemnity level. Here’s what you should look into before purchasing your trade insurance.

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Named drivers

In the car trade business, multiple drivers are often required to be insured. This could be due to the delivery of cars to their new owners or transporting them to different storage areas. Before settling on a policy decide who will be an agreed driver, or look into a flexible any driver policy if there will be different drivers frequently. It is highly important that this is accurate, otherwise, you could be found to be breaking the law. Make sure that you understand your policy terms to avoid getting in trouble for something you thought you were covered for.

Road risks

Whilst traders insurance routinely covers you for public liability, it may not cover you for driving a newly sold car. Ensure that your policy includes road risks cover to make sure that you are covered whilst on the road. You should also look for premises cover if you store your vehicles at your workplace.

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An indemnity level relates to the amount that your insurer will pay out should you make a claim. This is something you need to look at carefully as your claim could potentially be worth more, causing you to be out of pocket if the level is too low. Speak to your insurer about the types of vehicle you will be trading to ensure that you have the right limit for your business. You should also get multiple quotes before signing up to a new motor trade insurance policy to ensure that you are getting the best deal. Sites such as can help find something suitable for your business, so you should check before going with your existing provider.

Vehicle trade insurance often comes with confusing additions that your standard car insurance will not have. Be clear what these mean for your business and make sure that you are covered for any eventuality. Your prospective insurance provider will be able to talk you through the jargon and ensure you have all that you need to cover you, your employees and your business.


Author: PN

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