Who is Motor Trade Insurance for?
As the prospect of a no-deal Brexit looms increasingly large, a number of industries are continuing to deliver warnings to the UK government. The automotive sector is no exception to this rule, with market leaders suggesting that the failure to land an amicable deal could damage trade on both sides of the Channel.
This is a major cause for concern among economists too, with the automotive industry generating £82 billion in annual turnover and adding an estimated £20.2 billion to the UK economy.
The automotive trade also drives a number of other industries too, including the insurance sector. There’s a hefty number of auto insurance products available in the modern age, each of which adds value to motorists and business owners nationwide.
In this article, we’ll look at motor trade insurance while asking precisely what it is and who it can benefit?
What is Motor Trade Insurance?
In simple terms, motor trade insurance policies are designed to cover individuals who earn their living by purchasing, selling and maintaining vehicles. It’s most commonly leveraged to provide cover for small and medium-sized traders, while it safeguards individuals who manage, store or repair cars on a regular basis.
From a technical perspective, motor trade insurance policies cover three different areas. The first of these is road only motor trade insurance, which includes third party only, third party fire and theft and comprehensive coverage.
The latter covers traders in the event of accidental damages caused to their vehicles, while also safeguarding the impact of fire and theft.
Then there’s liability motor trade insurance, which has been specifically designed for dealerships that invite the general public onto their premises during daily working hours. This is a crucial example of motor trade insurance for dealers, particularly if they want to protect their most valuable assets from the risk of accidental damage.
The final iteration of this product is combined motor trade insurance, which includes coverage for money, liabilities, premises, tools and contents as well as vehicles. This product provides more comprehensive coverage for dealers, while its nature also lends itself to mechanics and auto repair shots.
This type of coverage is typically more expensive than other products, but it delivers more comprehensive protection to businesses across the board.
The Key Considerations when Shopping for Motor Trade Insurance
If you believe that motor trade insurance could benefit your business, your first step should be to ensure that you invest in a bespoke policy that suits your precise needs.
This process starts with your choice of broker, with reputable service providers such as Gallagher offering tailored and diverse packages that are aimed at specific industry professionals. This means that sole traders, dealerships and repair shops can seek out coverage to match their needs, without having to compromise on the protection afforded to their assets.
It’s also important to maintain an open mind with regards to pricing, as the cheapest deal is not always the best. This is true in relation to all insurance products, of course, but it’s particularly relevant to motor trade coverage and the type of relatively complex policies available.
When seeking comprehensive and bespoke coverage, it’s always better to prioritise value rather than cost and invest in policies that offer long-term protection.