Motor Trade

If you're in the business of renting or selling vehicles then you will most certainly need a motor trade policy. This is a special policy that specifies the driver only, not the vehicle, so you can drive any vehicle for motor trade purposes – without the hassle of having to take out separate policies for each vehicle.

With a motor trade policy you'll be covered to drive any vehicle that is your property and any vehicle "under your custody or control for motor trade purposes." This is really important when a motor trader has several vehicles in his care – customers' vehicles and demonstration use (including testing of customers' vehicles and demonstration of vehicles for sale).

Let's not forget the forecourt, cover can be provided for stock vehicles for sale (including those standing on the highway on a forecourt or ) and the motor trader's own vehicles.

A major concern is: To what extent do you want to protect your and your customers' vehicles?

• There is a minimum legal requirement which is know as 'Third Party Only'. (TPO) insurance This will only cover loss, damage or injury inflicted on a third party.With Third Party Only insurance, your own losses, damage or injury (apart from passengers) will not be covered. As a Motor Trader you really needs extra protection for your vehicles above this basic Third Party requirement.
• Third Party Fire and Theft (TPFT) is the next step-up from Third Party Only. TPFT pays out in the event of loss or damage to vehicles under the motor trader's custody or control in the event of theft or fire, as well as to third party damage or injury claims. This is particularly relevant if vehicles are stolen and "torched".It's worth knowing that the cost of TPFT cover is nowadays not significantly different to Comprehensive cover.
• Comprehensive (Comp) A Comprehensive policy is just that. It includes TPO & TPFT plus accidental damage to the vehicles that the trader owns or has care of. Imagine a customer's vehicle is damaged in an accident while being tested, Comprehensive cover will cover the cost of the repairs.