Motor Trade Insurance Myths

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The motor trade industry covers a wide range of services which consumers benefit from. Whether you are involved in a dealership, work as a sole trader in the second-hand car market, run a fleet of vehicles, provide services as a garage carrying out repairs or run a valet service, having the correct amount of insurance is vital to the success of your business and your livelihood.









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Advice on buying insurance can be found via the Association of British Insurers, and this is good place to begin your search.

It is important to understand the specialist nature of motor trade insurance and how it relates to your business.

You will find information online at sites such as, among others.

Confusing Issues

There are many myths about professional motor insurance as compared with private or domestic policies, and it is important that you find your way through the potentially confusing issues which often arise.








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Running a fleet often means drivers will be asked to step in to cover colleagues who are unavailable for whatever reason. It is essential that all employees who may be asked to drive a part of the fleet are fully covered. Reducing the number of drivers covered by your policy is not a cheap option, since everyone driving a vehicle owned by the company or being delivered must be covered.

A non-insured driver means you cannot make a claim under your policy and that clients may have a claim against you for non-delivery of services. There are also criminal law consequences. As an employer there are also consequences, and these need to be covered with your employer liability policy.


You may operate a business on a part-time basis selling second-hand vehicles. If so, do not expect to make savings when it comes to the pricing of your trade policy. It is important to explain what your other job involves.

Often individuals believe that they need a business address to get adequate cover, but this is not always the case. If you live in an area which insurers consider high-risk, however, this may impact the price of your insurance.

It is often assumed that public liability is optional, but as you are likely to be dealing with the general public, this is a false saving. You should always consider this insurance to cover potential claims.


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