Motor Trade Insurance is a highly flexible approach to insuring your vehicles, ensuring that in a fast moving market you remain legal. But is it for everyone? What does it allow me, the policy holder or my named driver(s) do?
Ok first things first, Motor Trade Insurance is a policy to cover people who are connected with the Motor Industry. There is an assumption that you need to insure a selection of vehicles, which will regularly change.
It does not cover drivers using the insurance policy to cover other people’s vehicles in SDP, the insurance covers driving other people’s vehicles in the pursuit of Motor Trade purposes.
This means, that if you regularly buy & sell ( motor trade ), mechanic or valet cars you qualify for a motor trade insurance policy
So as a motor trader can I drive any car on my motor trade insurance policy?
This is where you need to be careful.
A Motor trade insurance policy allows vehicles to be put under the policy holder’s charge. Any vehicle purchased by the Motor Trader must be put on to the MID, via the broker and or insurance company. The Motor Trader must get this put on as soon as possible, notifying the insurance company within 48 hours.
At the end of the day, it is in the Motor Trader‘s best interest as the Police, armed with VNC database will pull drivers who have inadequate insurance. For the legitimate Motor Trader this is a major inconvenience, having to produce sufficient paperwork.
A mechanic also needs to remain vigilant, ensuring that they can show they have a reason for being in a car that is not owned by them and/ or not on the MID. To keep your insurance If it is during the working day, it is fair to understand that vehicles need to be picked up, taken to the MOT centre, road tested in the event of a mechanical change etc. If, however, it is outside standard work hours (e.g. 11pm) it becomes difficult to prove you have been working on a vehicle and you are testing it. This activity could void your insurance policy.
The same will go for car valeting. During standard working hours vehicles being driven are clear and therefore, your insurance would be valid, however, late at night, being used for Social purposes, it is likely to draw suspicion and your insurance company may void your insurance policy.
Named Drivers are people who have been specifically identified on the Motor Trade Insurance policy. These people have certain restrictions which need to be adhered to, to ensure they do not void their Motor Trade Insurance policy. These restrictions will be affected by their age, the type of vehicles they wish to drive under the Motor Trade Insurance policy or major driving convictions. Also check that the named driver has Social and Domestic cover for them on the Motor Trade Insurance
Please note, that named drivers who wish to drive vehicles under the policy holder’s Motor Trade Insurance policy, need to ensure that the vehicle is owned by the policy holder.
Need more information on the above? Please give your friendly neighbourhood broker, Lionheart Insurance a call and they will be happy to help you figure out the best policy be it a Motor Trade Insurance policy or not.
Until next time, Be Lucky!
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Call them on 0121 380 0930 or click here for a great Motor Trade Insurance quote