Motor trade insurance is designed to cover people who actively work with cars, people such as car dealers, mechanics etc.
We have a range of policies designed to cover you, your vehicles and the public.
Road risk insurance, which will cover you to be on the road, it is the minimum insurance cover that will allow you to trade legally.
Liability insurance is compulsory by law if you have employees. You can also be covered so that if a member of the public suffers a loss as a result of your negligence then you will be covered if you are sued.
Finally, Combined policy insurance which comprises road risk insurance, liability cover and usually also includes buildings and business interruption.
Frequently asked questions
Who is a motor trader?
A motor trader is anyone who deals with motor vehicles in relation to their business or just as an additional income such as car salesmen, mechanics, valeters etc.
Do I really need a motor trade policy?
The law says that you must have road risk cover if you are driving on a public highway (private car policies stipulate that use of a motor vehicle in relation to motor trade activities is strictly forbidden). If you drive under a private car policy you are in fact breaking the law, as you will not be insured.
The answer therefore is yes, you do need a motor trade insurance policy; they are not usually any more expensive than a private car policy.
Will I be able to drive my cars for private use?
Many motor trade insurance companies will allow you to drive certain vehicles for social use, but you can usually exclude this use to bring down the premium. Always check with your broker about social use as it differs from insurer to insurer.
Can I transfer my no claims bonus (NCB)?
Most insurance companies will allow you to transfer a private car no claims bonus. Others will allow you to use what is known as an 'introduction bonus' whereby you can leave your no claims bonus on your private car and just show them proof of the bonus and they then allow that number of years on your motor trade policy.
Can I still protect my no claims bonus?
Most insurers will not provide a protected no claims bonus in the motor trade insurance industry.
Can I add my wife/partner onto the policy?
Most insurers will allow you to add a spouse onto the policy.
Things to watch out for 
Excess - an excess is the first amount you will be liable for in the event of an accident, usually the higher the excess the lower the premium. The excess is usually higher than a private car insurance policy.
First loss policy - a first loss policy is a policy that will usually only cover you for 1 indemnity level, these policies are usually designed for people who are good drivers and rarely have an accident. For example if you are covered for £10,000 once you have an accident up to that amount you will not be able to claim again.
Vehicle restrictions - always check the vehicle restrictions on a motor trade insurance policy.
Drivers and vehicle use - double check what the cover is for additional drivers on you policy, sometimes drivers are restricted to business use only, in other instances some drivers are restricted for social use only. Check with your insurance company if you are unsure on this.
Use abroad - some insurance companies will not allow you to take a vehicle out of the country if it relates to your motor trade occupation. It is always best to check with your insurer on this before you take out the policy if you need to drive abroad.
Motor insurance database - the motor insurance database is a record of every vehicle on the road. Insurance companies ask that as a motor trader you let them know every time you have a vehicle in your custody or control for more than 14 days.
Cover at business premises - under most standard road risk policies for motor trade insurance you will not be insured for vehicles at the business premises. Insurance companies will usually provide cover for this under a combined policy.
Use of trailers - under most insurance policies for motor traders use of trailers is permitted, but please check your policy carefully.
Swinford Insurance Consultants Ltd 