Motor traders insurance offers policyholders the ability to use any vehicle either directly owned or under their control for motor trade purposes with relatively few restrictions. However, as with a personal policy, care must be taken to read the small print of each policy and adhere to any specific limitations.
On a motor trade policy it does tend to cover you for social, domestic and pleasure with the option to include cover for commuting to and from a place of work, specifically for vehicles which are covered as part of a business need – use of vehicles for purposes such as a test drive, servicing and MOT, or the collection and delivery of a car or van to or from a customer.
The motor trader policy may have additional benefits or cover. For example, many insurers allow spouses to drive on the trade policy for SDP use, and multiple named drivers (e.g. all staff at car dealerships or garages) can be added to the policy document. Dealerships may also wish all their motor mechanics to be covered under a single trade policy, and again this is usually straightforward to arrange. This is different to private policies which tend to be quite restrictive in the allowed number of named drivers. Many insurers also allow the addition of both part time and full time traders onto a policy, though this can depend on the nature of other occupations the policy holder may undertake. Adding extra drivers will of course raise the premium, especially if any named drivers are inexperienced or have any existing convictions or endorsements.
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An additional type of cover often included within a motor trade policy is ‘demonstration cover’. This allows dealers to let clients test drive a vehicle on the roads prior to purchase; this comes at an additional cost on many policies. It’s important to check your level of cover and the policy terms and conditions carefully, especially if you have a need for this type of cover and don’t just require motor trade insurance for specific purposes such as vehicle servicing and repair. Don’t assume that a motor trade policy from one insurer will necessarily be identical to that provided elsewhere.