Your policy does not necessarily cover every vehicle that comes into your place of work. If you buy and sell cars and take out a policy specific to this, then you are only insured to drive vehicles in your name or for which you have proof of purchase. This is why it is important to be aware of the details of your policy as they vary on number, type, value etc.
Number of vehicles
The number of vehicles that you can have on one traders insurance policy depends on the premises of the cover. The typical for someone trading from home would be a maximum of five vehicles. This can be discussed with your insurer as people with showrooms or large garages will require an extension on the number of vehicles covered.
For these businesses with larger throughput of vehicles, it is also possible to have cover for an unlimited number of vehicles, which prevents any restrictions on your trading. This would be useful for larger, more established companies. Start-ups would be able to upgrade their cover to have an unlimited number of vehicles once they are off the ground.
Type of vehicles
Motor trade insurance will cover a range of vehicles including vans, cars and motorbikes. The most common type of trade insurance is car trade insurance. If you are trading solely bikes and motorbikes again this is a more difficult market however we can provide you with cover to suit these requirements.
When you take out the policy you will be asked to provide approximate details of the number of vehicles and type of vehicles you will be handling and a maximum value.
If you plan on dealing or servicing high end or classic cars then these will not be covered by a typical policy. You will require a policy will a much larger premium to cover the cost of replacing the vehicle if it were written off. This will make the premium more expensive, however the cost of having a classic car stolen would be much greater.
Some insurers will put a limit on the weight of the vehicle (typically in tonnes). This is because larger vehicles may provide an increase likelihood of accidents especially within garages or showrooms and where the public are involved. If for example you are looking for recovery truck insurance you will be covering larger lorries as well as smaller vehicles. At Bollington we provide a policy especially for recovery vehicle insurance. However when it comes to buying and selling recovery trucks or lorries then this is a different story. Insurance is still obtainable but this yet again requires a different policy.
You can also get cover for trade plates provided by the DVLA. A minders policy could be taken out by mechanics or MOT centres, which only means vehicles that are declared for motor trade purposes will be covered. These vehicles are usually those that belong to your customers and this allows you to drive them whilst covered.
Motor Insurers Database
It is important to be aware of the MID when you have motor trade car insurance. The Motor Insurers Database is a record of all insured vehicles within the UK. This database is used by the police and the DVLA to identify uninsured or incorrectly insured vehicles. Driving a vehicle without valid insurance is considered a criminal offense with fines and penalty points on your license as a result. This also means your insurance would be invalid if anything happened to a vehicle not on the MID.
This means that as soon as you buy a vehicle or it is in your possession you must report it to the Motor Insurance Bureau for it to be covered. This should preferably be done within the same day, especially if you plan to use the car on the road.
Regardless of how long the vehicle is in your possession, it is recommended to register it with the database to avoid vehicle seizure or police enquiries.
When you sell a car or it is no longer in your possession, you must remove it from your policy. The vehicle is your responsibility so long as it is on the MID under your name.