Whether you are a car dealer, own a garage or handle some other type of mechanic's business, you have to obtain Motor Trade Insurance. This is necessary not only to fulfil your obligation to the UK insurance laws but also to hold adequate cover to guard against losses and damages in the case of accidents, theft and other incidents. The advantage of this is that the trader or his employees can drive any vehicle for business purposes and they would have the Motor Trader Policy, instead of having separate policies for each vehicle, as the vehicle is going to be different every time. This comes in handy for people running dealerships and garages.



The insurance policy protects your business and assets in the case of unpleasant scenarios by covering your financial and material losses. The kind of Insurance policy that you get depends on your individual needs and circumstances. Motor Trade Insurance has five types. These types are: Third Party Only, Third Party Fire and Theft, Comprehensive Policy, Liability Policy and Combined Policy. The first four types are usually characterised as policies for Road Risks. Each of the types has its own features and coverage and hence the premiums also vary.

The policies which come under the Road Risk category cover the vehicle for any damages which are caused during business activities. In contrast, the combined policy gives coverage for several other aspects of your business like equipment, materials, buildings etc. The ideal insurance for you would be the one which suits your needs and circumstances and provides effective coverage, and has a low premium, all at the same time. As many of the policies have some common features, the best way to choose one is by consulting a Motor Trade Insurance professional who would be able to recommend a policy which is best for you. This would save you from getting a policy that does not provide complete protection or provides coverage that you don't need.

If you want to get Motor Trade Insurance, the easiest way is to do it through a broker as they know the industry and they can get you the features you need within your budget. This will not only save you time and effort but you would also be able to get an excellent deal at a good rate.

After you get your Motor Trade Insurance policy, you can have changes made to it if you think them necessary. You can do that by paying a specific fee and get a feature upgraded or changed.

It is important to keep the insurance company updated with any changes in your business circumstances as they occur, because this will ensure your future premiums - and the fulfilment of your claim would also depend on these changes. It can occur that if you don't inform the company of a significant change, they may refuse to fulfil your claim when you make it.

Your insurance company would let you know before the policy's renewal date arrives and you can change your policy or get Motor Trade Insurance from another company if required.