The motor trade road risks insurance policy is a specific type of motor insurance that has been developed by insurers to meet the needs of those engaged in the motor trade, both on a full time and part time basis.
It is a legal requirement that anyone using a motor vehicle on a public highway hold valid motor insurance in respect of that vehicle and clearly those involved in the motor trade, whether it be in sales or servicing, have to drive both their own stock vehicles and customers vehicles on a regular basis.
The road risks policy provides the policyholder with that flexibility by stating that the policy applies in respect of any motor vehicle owned by the insured or used by them in connection with their motor trade business. Cover under the policy is available as third party only, third party fire and theft and comprehensive.
Who can drive under a motor trade road risks insurance policy?
You need to arrange the policy specifically with other drivers included. A policy does not automatically allow other people than the policyholder to drive. If you want the spouses of owners or directors to drive, employees or members of the public for demonstration purposes, you need to arrange the policy on that basis.
Road risks insurance for limited companies
If your policy is arranged in the name of a limited company you should be aware that the cover in respect of “own vehicles” applies to vehicles owned by the policyholder, the company and not personally owned by directors of the company or their spouses. This is a common mistake and if you are in this situation, you should remedy it with you insurance company.
Vehicle indemnity under motor trade policies
For third party fire and theft and comprehensive policies you will need to select a limit if indemnity in respect of both your own and customers vehicles. This is the maximum amount payable in respect of any claim for own damage and damage to customer vehicles. Remember that the basis of settlement for claims involving your own vehicles is trade value only.
Do I have to be a motor trader to buy road risks insurance?
In short, yes. In reality there a number of occupations that fall outside the general motor trade banner, but still require the flexibility of the motor trade policy and example of this would be a car jockey and some insurers will provide road risks insurance for these types of occupations. Such insurance must be arranged on the correct basis with the insurers consent to that occupation. Be warned that in the event of a claim under the policy insurers will check to ensure that you are actually engaged in the business you have stated that you are when you took out the policy and in many cases they will seek proof of trading.
Can I drive any vehicle under my road risks insurance?
No, this is a common misconception with policyholders and people looking to take out new road risks insurance. It is not a “blanket” private car insurance. The vehicle must either be owned by the policyholder or being driven in connection with the insured’s business as a motor trader.
Can I insure my stock and tools under my road risks policy?
The opportunity to add cover for stock including vehicle stock and your tools and equipment is a fairly recent addition to most motor trade road risks insurance policies and this is and excellent way of protecting your assets outside of a full blown combined motor trade policy.
Is road risks insurance a cheap way of buying car insurance for high performance vehicles?
No, again this has often been thought to be a solution for some people and they are mistaken in this. You must notify all of your own vehicles to your insurer and and the MID. Many policies will carry restrictions on the types of vehicles that may be driven and you need to check the details of your own policy to ensure that the cover actually meets with your requirements.
How to buy motor trade road risks insurance
You can apply on-line or you can call us direct to discuss your requirements with an experienced broker who will be happy to work with you to obtain our best terms for your cover.
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