What is Motor Trade Road Risk Insurance?

If your reading this article you probably have either an interest in the motor trade industry, you’re thinking of setting up a new motor trade road risk policy, or you’re a motor trade veteran just after some extra information. This article will very simply explain what a motor trade road risk policy is and what it will cover you for.

Motor trade road risk insurance covers vehicles in your custody and control for the purposes of your business within the Motor Trade Insurance Stockport UK sector. It will also cover your personally owned vehicles. However, this is with certain limitations set both by yourself and the insurance company.

So, if you sell vehicles, the policy will cover your personally owned vehicles and any vehicles you have as stock. If you repair vehicles, a motor trade policy will cover your personally owned vehicles, as well as test drives of vehicles you are currently repairing. Cover for stock is also available.

If you’re recovering vehicles, it will cover your personally owned vehicles, as well as the ability to be able to move your customers vehicle onto your recovery truck, it is worth noting, whilst your customers vehicle is on the back of the recovery truck it will only cover them third party only unless your insurance policy specifically states full policy cover. To find this out ask your insurance broker to advise you.

Let’s talk about the types of vehicles you can drive in connection to your business or own personally. Standard vehicles are perfectly acceptable, some examples of standard vehicles are; Peugeot 107, Fiat, Ford Focus (Excluding RS), BMW 320. There is also a classification of non-standard vehicles and I have listed examples of these below:

• Imports
• American & Canadian
• Left-Hand Drive
• Classic (Typically 25 years and older)
• Vehicles over 3.5t
• Caravans, campervans, motorhomes, any vehicle with a kitchenette
• Modified
• Motorcycles, quads, trikes
• Agricultural
• Horseboxes
• Ice-cream vans
• Steam-driven vehicles
• Recovery vehicles or trailers
• Sports, high performance and prestige (Examples include: BMW M3, Mercedes AMG C63, Nissan Skyline, Subaru Impreza Turbo Models, Bentley, Aston Martin)

If you deal with or own any non-standard vehicle you need to disclose this to your insurance broker and they will know how best to proceed.

A road risk policy is designed to only cover vehicles whilst on the road. A road risk policy will not cover any vehicle in or around your business premises, and exclusions can range from 400m to 1km. If you require any vehicles to be covered at your business premises you will need to add an extension to your policy called vehicles at premises. Many insurance companies will cover your personally owned and stock vehicles away from your business premises such as at your home address or if you have parked up to go food shopping etc.

So, we have covered the vehicles, but what about the people? Depending on the insurance company, each different driver will have different cover, this ranges from Motor Trade Insurance Brokers Stockport UK use, motor trade use and social domestic and pleasure, or just social domestic and pleasure. You cannot assume your spouse will have motor trade use or your employees will have social, domestic and pleasure. You have to ensure they do. Discussing this with your broker and ensuring you know what you are covered for is vital.

Does a road risk policy cover you to drive to a secondary occupation? If you’re self-employed then no, you will need to add an extension called additional business use. If you are self-employed and using a vehicle not listed on your policy which is separately insured you will not need additional business use, but your insurance company may ask you to prove you have separate insurance in place which covers you to drive a vehicle in connection to your secondary occupation.

If you are employed it’s possible your insurance company will cover you for commuting purposes. If you drive to one place of work and back home again, this is considered commuting. If you have to drive around for your work or you have multiple office locations you will need additional business use to cover yourself properly. Always speak to your broker and inform them of any secondary occupations you have, whether you are self-employed, within a partnership, are a director of a limited company, are employed elsewhere or you take part in voluntary work.

You can also add optional extra’s onto your road risk policy to enhance your cover such as:

• Accompanied demonstration cover
• Vehicles at premises cover
• Public liability
• Employer’s liability
• Vehicles in transit (This gives you comprehensive cover whilst a vehicle is on the back of a trailer or recovery vehicle)

If you are ever in doubt as to the type of cover you have, or whether you have certain cover in place, or you’re just unsure if a certain vehicle is covered it is always worth speaking to your insurance broker. They will happily give you advice in regards to your situation.

We supply the best motor trade car insurance policies from an extensive panel of insurance companies and at cheapest rates. For cheapest motor trade insurance Stockport UK, Call us at 01616413229