Combined Motor Trade Insurance

Combined Motor Trade Insurance provides comprehensive coverage for businesses operating in the motor trade industry. It combines multiple insurance coverages into a single policy, offering convenience and comprehensive protection against the various risks faced by motor trade businesses. Here are the key coverages typically included in a Combined Motor Trade Insurance policy:

1. Road Risks Insurance: This coverage protects motor traders while driving or operating vehicles on the road for business purposes. It includes coverage for vehicles owned or operated by the business, vehicles held for sale, vehicles being repaired or serviced, and vehicles being transported.
2. Premises Coverage: Premises coverage extends to the physical locations of the motor trade business, such as showrooms, garages, workshops, or other business premises. It provides protection against risks like fire, theft, vandalism, and damage to buildings, tools, equipment, and stock.
3. Public Liability Insurance: Public Liability Insurance covers motor trade businesses against claims for bodily injury or property damage caused to third parties during business operations. It provides financial protection in case of accidents or incidents involving customers, suppliers, or members of the public.
4. Employers’ Liability Insurance: Employers’ Liability Insurance is typically included if the motor trade business employs staff. It covers claims made by employees for work-related injuries or illnesses and provides compensation for medical expenses and lost wages.
5. Stock Coverage: Stock coverage protects the motor trade business against loss or damage to vehicles, parts, or other stock held for sale or repair. It covers risks such as theft, fire, accidental damage, or loss due to various circumstances.
6. Business Interruption Insurance: Business Interruption Insurance covers the financial losses incurred by a motor trade business when it is unable to operate due to an insured event, such as fire, flood, or other specified perils. It provides compensation for lost income and additional expenses during the interruption period.

Additional coverages and optional extensions can be included in a Combined Motor Trade Insurance policy based on the specific needs of the business. These may include tools and equipment coverage, legal expenses coverage, demonstration coverage, and more.

It’s important to carefully review the policy terms and consult with insurance professionals to ensure that the Combined Motor Trade Insurance policy adequately covers the specific risks and requirements of the motor trade business.

Combined Motor Trade Insurance is essential for a wide range of businesses operating in the motor trade industry in the UK. Here are some common types of businesses that typically require Combined Motor Trade Insurance coverage:

1. Vehicle Dealerships: Businesses involved in buying, selling, or trading vehicles, including car dealerships, used car lots, motorcycle dealerships, and van dealerships, require motor trade insurance to protect their vehicle stock, premises, and liability exposures.
2. Mechanics and Garages: Vehicle repair shops, vehicle servicing centres, and garages that offer mechanical repairs, maintenance, and diagnostics for vehicles need motor trade insurance to cover their liability, premises, tools, and equipment, as well as their customers’ vehicles.
3. Body Repair and Paint Shops: Businesses specialising in bodywork repairs, paintwork, and panel beating for vehicles, such as body shops or crash repair centres, require motor trade insurance to cover their premises, equipment, customer vehicles, and potential liability.
4. Mobile Mechanics: Mobile mechanic businesses that provide on-site repair and maintenance services for vehicles may require motor trade insurance to cover their tools, equipment, liability, and vehicles used for business purposes.
5. Vehicle Recovery and Breakdown Services: Companies offering vehicle recovery, breakdown assistance, and roadside assistance services need motor trade insurance to cover their recovery vehicles, tools, equipment, and potential liability in case of accidents or incidents during recovery operations.
6. Vehicle Valeting and Detailing: Businesses providing professional vehicle cleaning, valeting, and detailing services require motor trade insurance to protect their equipment, liability exposures, and potential damage to customer vehicles.
7. Car Auctions: Companies operating vehicle auctions, where vehicles are bought and sold through bidding processes, need motor trade insurance to cover their premises, liability, and the vehicles being auctioned.
8. Vehicle Transporters: Businesses engaged in vehicle transportation, such as car transporters or vehicle delivery services, require motor trade insurance to cover their transport vehicles, liability, and potential damage to the vehicles being transported.
9. Vehicle Rental Companies: Companies involved in renting vehicles, including car rental businesses, van rental services, or specialised vehicle rentals, require motor trade insurance to cover their rental fleet, liability, and potential damage to rented vehicles.
10. Independent Vehicle Traders: Independent traders who buy and sell vehicles, including part-time traders or traders operating from home, require motor trade insurance to protect their liability, stock, and potential income loss.

These are just some examples of businesses within the motor trade industry that typically require Combined Motor Trade Insurance coverage. Businesses must assess their specific activities, risks, and legal obligations to determine the appropriate insurance coverage for their operations.

Combined Motor Trade insurance is designed to provide comprehensive coverage for businesses in the motor trade industry, covering various aspects like road risk, premises, and tools or equipment. However, there are certain things that a typical policy may not cover:

1. Specific Vehicles: Certain types of vehicles may not be covered, such as extremely high-value vehicles, sports cars, or perhaps certain types of commercial vehicles. Always check with your insurer regarding the types of vehicles included in your policy.

2. Non-Business Usage: If a vehicle is not being used in connection with the motor trade business, it might not be covered. Personal use might be included in some policies, but not all.

3. Named Drivers: Some policies may only cover certain named drivers. If an unnamed driver is involved in an incident, the policy may not provide coverage.

4. Incorrect Use: If a vehicle is used in a way that’s not covered by the policy (e.g., using a vehicle covered for social, domestic, and pleasure purposes for business-related activities), you may not be covered.

5. Poor Workmanship: If damage is caused due to poor workmanship, your insurance might not cover the resultant claim.

6. Legal Liability Due to Defective Workmanship: If a mechanic performs faulty repairs that cause damage or harm, some policies may not cover the legal liability that could ensue.

7. Uninsured Losses: These can include lost income or other indirect costs related to an incident, which standard policies may not cover.

8. Breach of Health and Safety Regulations: If a claim arises from a breach of health and safety regulations, this may not be covered.

It’s crucial to remember that the specifics of what is and isn’t covered can vary greatly from one policy to another. When selecting insurance, make sure to discuss the policy in detail with the insurance provider or broker to ensure you fully understand the exclusions and limitations. If there are areas of risk that your combined motor trade insurance policy does not cover, you may want to consider additional insurance policies to provide more complete coverage.

The price can depend on many factors, including but not limited to:

1. The size and nature of the business: A small, local used car dealership may pay less than a large, multi-location business dealing in luxury vehicles.
2. The location of the business: Rates can vary significantly depending on whether your business is located in a rural area, a small town, or a large city.
3. The types of coverage included in the policy: Different aspects such as liability, workers’ compensation, property damage, business interruption, tool & equipment coverage, road risk cover, etc. can influence the cost.
4. The amount of the deductibles: Higher deductibles can result in lower premiums but mean higher out-of-pocket costs in the event of a claim.
5. Claims history: If your business has made a lot of insurance claims in the past, your premiums may be higher.
6. The number of employees: More employees typically mean higher costs for coverage.

For a more accurate quote, you should contact an insurance broker or agent directly or use an online quote tool provided by an insurance company. They will be able to assess your individual needs and provide a price that considers all relevant factors.

The Institute of the Motor Industry Website

Retail Motor Trade Federation – The Retail Motor Industry Federation (RMI) is the UK’s leading automotive trade body, representing franchised car and commercial vehicle dealers, independent garages, bodyshops, motorcycle dealers, petrol retailers, auction houses and cherished number plate dealers,