| Despite the similarity of names, motor trade | | | | insurance. |
| insurance is fairly different from the typical motor | | | | Of course, given that these vehicles represent a |
| vehicle insurance. The differences stem from the | | | | motor traders life and blood (as well as a significant |
| nature of the policies; the former is principally a form | | | | initial financial investment. Third Party is the minimum |
| of commercial insurance, the latter a private policy | | | | legal requirement but it won't offer peace of mind to |
| for individual motorists. | | | | anyone in the motor trade. more so than private |
| Like private motor insurance, motor trade policies | | | | vehicle owners, a motor trader needs to be able to |
| come in a variety of levels of cover like third party, | | | | at least recoup losses on theft or fire (a car park full |
| third party fire and theft and comprehensive | | | | of stationary vehicles presents more targets than a |
| insurance. Unlike car insurance though, motor trade | | | | single vehicle in a driveway or garage). |
| policies cover the driver - not the driver and the | | | | For those in the second-hand trade, the more likely |
| vehicle. | | | | comprehensive insurance will come in useful. Not only |
| Basically, car insurance protects a specific driver in a | | | | because potential customers will likely insist on a test |
| specific vehicle. Motor trade protects a driver for any | | | | drive but also because if the trader is purchasing a |
| vehicle he or she drives for the purposes of motor | | | | car from a private individual, they will definitely take it |
| trade (not for just driving to the shops) that is also | | | | for a drive before deciding. Any kind of accident that |
| his property. | | | | happens during that time could be massively |
| As you can imagine, this is extremely useful for | | | | damaging to the business. |
| people in the motor trade. It provides insurance when | | | | Motor trade insurance also extends to other areas of |
| taking a demonstration drive, or for testing customer | | | | liability than comprehensive private policies. Firstly, |
| vehicles for part-exchange or second-hand purchase. | | | | although its not compulsory for motor traders as a |
| It also provides cover for driving vehicles from | | | | business with public premises it can be incredibly |
| storage depots to showrooms, or in the case of | | | | costly if the operator fails to provide a safe |
| larger organisations, between separate showrooms. | | | | environment; just like supermarkets and high-street |
| If motor trade insurance operated exactly the same | | | | shops, motor traders have a duty of care obligation |
| way as other forms of motor insurance, it would be | | | | in the common law. |
| a nightmarish procedure to just complete the day to | | | | Additionally, the motor trader is likely to need |
| day business of the motor trade. Not only because | | | | employers liability insurance; it's legally required if you |
| of the potential costs of driving uninsured - but | | | | want to employ anyone from a part-time car washer |
| because even if you're in the motor trade, it's illegal | | | | to a full-time salesman or mechanic. |
| to drive a car on the UK's public roads without | | | | |