Motor Trader’s bible lifts the lid on “Can Car Valets have Motor Trade Insurance?”
The simple answer is yes, Car Valets can have Motor Trade Insurance because car valets need to be able to drive a selection of customers’ vehicles. Therefore, car valets need to take out motor trade insurance.
Motor Trade Insurance Indemnity
The important part about car valets taking out motor trade insurance is indemnity. Indemnity is the value of the individual vehicles that are to be driven. Therefore when discussing your motor trade insurance with your insurance broker discuss Split Indemnity. You need to ensure that your motor trade insurance indemnity covers your own personal vehicles. The other side of the motor trade insurance indemnity needs to be set to a level which cover your customers’ vehicles.
Level’s of Indemnity on your Motor Trade Insurance
Indemnity on Motor Trade Insurance is set a regular stepped level, typically starting at £2,500; £5,000 increasing in £2,500 steps up to £15,000. From then on your indemnity in your Motor Trade Insurance will increase in £5,000 steps, so the next level would be £20,000.
For a car valet, using split indemnity, the indemnity level for their clients’ vehicles is oftern between £20,000 and £30,000. Naturally, as you increase your indemnity levels on your motor trade insurance it pushes up the cost of your Motor Trade Insurance premium. However, the benefit is that you can take on more expensive vehicles which provides you with a richer clientèle!