How Does Motor Trade Insurance Work

Motor trade insurance is a must have if you’re in the motor trade business. This includes people who buy and sell cars, run car service shops or do the body repairs. The motor trade insurance cover such as the one provided by  indemnifies these groups from any damage that may arise in the course of doing their work.

If you have a client’s vehicle in your hands, you need a policy that covers you when you are on a road test, collecting and delivering the vehicle, repairs, service and any other activity on the sad vehicle.

If you run a motor sales business, the motor insurance cover covers your stock of the vehicles, the collection, and delivery of the vehicles after purchasing them or after the sale, demonstration of use and risks that may occur when the car is within your premises.

It is a legal requirement that any car that uses a public highway should be covered by at least a third party policy. Purchasing a third party motor trade insurance policy ensures that you comply with the law.

What types of vehicles are covered by the policy?

The policy requires that all the vehicles under the motor vehicle trade insurance be the property of the policyholder. This means that you cannot cover vehicles that owned by your spouse or an employee. Some insurance companies also place restrictions on certain types of vehicles with regards to the age, the condition of the vehicle and the kind of repair that is being done to the vehicle at the auto service shop.

 Other risks covered by the policy

The motor trade insurance cover also protects the motor vehicle dealer from such risks material damage that occurs in the course of dealing with the vehicle. The policy also covers the vehicle against fire and theft when the vehicle is in your custody.

In addition to the above risks, motor trade insurance cover indemnifies you from accidental damage that may occur in the course of test-driving and demonstration. The cover can be extended to cover the client when they are with you. Moreover, the cover protects you from lawsuits that emanate from defective workmanship in the course of repairing the vehicle.

Motor trade insurance cover is a basic requirement for all the motor vehicle dealers. Any of the risks mentioned above can literally wipe out your business and leave you with endless lawsuits. The cover gives you the peace of mind you need to get going.