In the motor trade industry, where businesses range from vehicle repair shops to car dealerships, getting the right insurance is paramount to safeguarding your business.
Motor trade insurance, a specialised form of business insurance, is designed to protect against the unique risks associated with the industry. Whether you’re a mechanic, a car dealer, or a breakdown recovery service, this insurance is indispensable.
It extends coverage to your company and staff for the everyday use of vehicles in your business operations and if your business handles customers’ vehicles or involves selling cars, motor trade insurance becomes a necessity. It covers various scenarios, from demonstrating and delivering vehicles to keeping them in your care, custody, or control.
The diversity of businesses covered by motor trade insurance is extensive. This includes vehicle repair businesses, car sales, garages offering MOTs and servicing, breakdown and recovery firms, vehicle delivery firms, scrap yards, and even car valet companies.
Motor trade policies are inherently flexible, accommodating a range of needs. These policies can cover all employees and the vehicles they use in the course of their work.
“Care, custody, and control” are the key terms here, referring to the period when a customer’s vehicle is left with your business, necessitating reliance on motor trade insurance for protection.
While the core coverage is extensive, motor trade insurance can be tailored to individual business needs. Depending on your business, additional coverage may include employers’ liability insurance, public liability insurance, accompanied and unaccompanied demonstration cover for test drives, loan/hire cover for courtesy cars, and breakdown insurance, among others. Tailoring the policy ensures that businesses pay for what they need, avoiding unnecessary expenses.
There are many factors that influence the cost of motor trade insurance premiums. Brokers often secure long-term agreements for dealerships, leveraging discounts to offset the annual increase in premiums, which can range from 15-20% a year. The surge in the cost of motor trade parts, exacerbated by the pandemic and increased claims, has contributed to the upward trend in premiums.
Business size and the adequacy of sums insured are critical factors in tailoring motor trade insurance policies. Adequate building insurance, ensuring the rebuild cost is covered rather than market value, is essential too.
Considering the unique aspects of each business, such as the increasing costs of motor trade parts, helps in customising policies to meet specific needs so engaging a broker in securing motor trade insurance brings multifaceted advantages.
Acting as the intermediary, brokers negotiate the best rates, highlight gaps in coverage, and handle claims efficiently. For larger clients, brokers often provide personalised attention to ensure their claims are managed seamlessly, as well as keeping their motor insurance database up to date. Additionally, brokers play a crucial role in obtaining competitive offers promptly.
AbbeyAutoline works closely with a wide range of insurance partners to offer comprehensive insurance solutions that are specifically designed to meet the diverse needs of motor trade clients.
:: Angela Stewart is account executive at AbbeyAutoline (www.abbeyautoline.co.uk/business-insurance)
